While the Payne-Aldrich Act was much criticized, because it failed to reduce duties on imports to the extent expected, yet it marked a distinct step towards a lower scale of import duties, and opened the door to the free exchange of commerce with the Philippines. By the enactment of the maximum and minimum tariff provisions, it placed a powerful weapon in the hands of the American Government for the protection of American commerce against unduly discrim inatory practices by foreign Governments. It also, for the first time in American history, provided for the establishment of a tariff board to study the questions which lie at the foundation of the protective system.
While Congress was considering the Tariff Bill, the president called upon the heads of the departments of Government to pre pare, in advance of the usual time, their estimates for the fiscal year ending June 3o, 1911, admonishing them to reduce expenses wherever it could be done. These estimates were then considered by the president and cabinet, and for the first time in American history a comprehensive budget was prepared. As a result of these efforts, a cut was made of about $55,000,000 in the estimates for the fiscal years 191O and 1911. In June 1910, the Con gress granted the president's request for an appropriation to enable him to employ competent persons to study the methods of transacting the public business of the executive departments and other Government establishments, and to recommend such legislation as might be necessary to carry into effect changes found to be desirable that could not be accomplished by execu tive action alone. President Taft caused a commission to be organized, and as a result of its studies, sent to Congress four special messages transmitting the reports of the commission, dealing with particular subjects, pointing out defects in the or ganization and conduct of the business and changes that might be made advantageously.
In his message of Jan. 17, 1912, the president called attention to the fact that the United States was the only great nation whose Government was operated without a budget, and recommended the adoption of an annual budget. Nothing was done by Congress in these matters, but many, if not most, of the improvements in the organization and conduct of the administrative branch of the Government which have been adopted in more recent years were first formu lated and recommended by President Taft. He also recom mended to Congress the enactment of amendments to the inter state commerce law, the establishment of a postal savings bank system, the enactment of laws giving the interstate commerce commission the power to determine upon the uniform construc tion of appliances used by railway trainmen in the operation of trains and to intervene and investigate the reasonableness of a proposed increase in railway rates before they became effective; of amendments making the Employer's Liability Act more easy to enforce; of laws carrying out with intelligent discrimination the principle of conserving the national resources; the estab lishment of a national health bureau; requiring publicity of campaign contributions; regulating the procedure of Federal courts concerning the issue of injunctions; and readjusting the regulations concerning postage of second class mail matter. Most
of these recommendations were embodied in laws passed by the Congress. By executive order, the President placed the positions of secretaries in the diplomatic service in much the same posi tion as those in the consular service, and introduced into both the principle of appointment for reasons of ascertained fitness and promotion by merit.
In 1910 and 1911, President Taft negotiated with the Governments of France and Great Britain identical treaties, signed on Aug. 3, 1913, intended to be models for a series of treaties providing firstly, for the arbitration of all differences which might arise between the parties which it was not possible to adjust by diplomacy, and which were justici able in their nature, and secondly, for the creation of a joint high commission of inquiry, to which should be referred for impartial investigation, any justiciable controversy between the parties before submission to arbitration, and also any other con troversy, even if the parties were not agreed that it fell within the scope of the first article; the report of such commission not to be regarded as a decision on the questions submitted. The first of these provisions embodied in effect the agreement reached in the treaty between the United States and France of Feb. 6, 1928. The second furnished a model for the treaties negotiated by Secretary Bryan in 1914, known as the Bryan Conciliation Treaties. Together, they represented a greater advance in pro visions for the peaceful settlement of international controversy than any the world had known. The U.S. Senate qualified its approval by such extensive reservations, that the president with drew the treaties from further consideration. In 191o, President Taft initiated negotiations with the British Government for the establishment of a reciprocal trade agreement between the United States and the Dominion of Canada. Instead of embodying the desired tariff changes in the formal shape of a treaty, it was agreed that the Governments of the two countries should use their utmost efforts to bring about such changes by concurrent legislation at Washington and Ottawa. It was further agreed that a considerable list of articles produced in both countries should be reciprocally free. As to another group, common rates of duties upon importation from either country into the other were fixed. The proposed legislation was, however, defeated in the dominion parliament, and the effort failed.