The credit of the united states.

The credit of this Government was shown to be better than that of any other Government by the sale of the Panama Canal 3 per cent bonds.  These bonds did not give their owners the privilege of using them as a basis for bank-note circulation, nor was there any other privilege extended to them which would affect their general market value.  Their sale, therefore, measured the credit of the Government.  The premium which was realized upon the bonds made the actual interest rate of the transaction 2.909 per cent.

Efficiency and economy in the treasury department.

I In the Treasury Department the efficiency and economy work has been kept steadily up.  Provision is made for the elimination of 134 positions during the coming year.  Two hundred and sixty-seven statutory positions were eliminated during the last year in the office of the Treasury in Washington, and 141 positions in the year 1910, making an elimination Of 542 statutory positions since March 4, 1909; and this has been done without the discharge of anybody, because the normal resignations and deaths have been equal to the elimination of the places, a system of transfers having taken care of the persons whose positions were dropped out.  In the field service if the department, too, 1,259 positions have been eliminated down to the present time, making a total net reduction of all Treasury positions to the number of 1,801.  Meantime the efficiency of the work of the department has increased.

Monetary reform.

A matter of first importance that will come before Congress for action at this session is monetary reform.  The Congress has itself arranged an early introduction of this great question through the report of its Monetary Commission.  This commission was appointed to recommend a solution of the banking and currency problems so long confronting the Nation and to furnish the facts and data necessary to enable the Congress to take action.  The commission was appointed when an impressive and urgent popular demand for legislative relief suddenly arose out of the distressing situation of the people caused by the deplorable panic of 1907.  The Congress decided that while it could not give immediately the relief required, it would provide a commission to furnish the means for prompt action at a later date.

In order to do its work with thoroughness and precision this commission has taken some time to make its report.  The country is undoubtedly hoping for as prompt action on the report as the convenience of the Congress can permit.  The recognition of the gross imperfections and marked inadequacy of our banking and currency system even in our most quiet financial periods is of long standing; and later there has matured a recognition of the fact that our system is responsible for the extraordinary devastation, waste, and business paralysis