The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1896-07-03
THE DEFICIT.

Estimates made up by the treasury
department for the fiscal year which
ended on the Goth of June show that
the total deficit for the last twelve
months amounts, in round numbers, to
$26,0000 900. This is a shortage which
we are asked by our Republican friends
to believe has played the very dickens
with the countrys interests, and
thrown the financial situation into con-
fusion. They bark back always to the
Democratic tariff bill as the cause of
this discrepancy and source Of all our
woes. None of them is honest enough
to refer to the fact that if the Demo
cratic tariff bill had stood just as 1t
was passed, the treasury would show
at this moment a surplus Of $24, 900 900,
approximately, for the last year, in
stead of deficit of $4,000, 900. 1t was
estimated by the treasury agents that
the proceeds of the income tax would
amount to about $4,000, 900 per annum
This was not mere guess, because
the papers had been sent out and re-
lectors in all the districts to such an
extent that the amount of revenue to
be derived could be measured with ap-
proximate exactness. This income tax,
with its 100000 addition to revenue,
was an integral part of the Democratic
tariff bill, which would not have been
passed in the shape that it became a
law had any one dreamed that the in
come tax feature would be thrown out
by the supreme court Had any con-
gress that has met since that decision
been possessed of enough patriotism to
counterbalance partisanship, it would
have provided the additional revenue
necessary without raising any party
issue. This was not done, and
the existing deficit is far less a pro-
duct of legislation than of the refusal
to legislate exhibited by the defeat of
every proposition to levy such taxation
as would have made income equal to
expenditure.
Passing, however, the question of
responsibility, and dealing only with
the situation as it stands, we can now
complete the financial estimate that
we presented in general terms in COM
menting upon Mr.. McKinley's speech
of acceptance. We have now figures
representing the total treasury deficit
accruing during the life of this ad-
ADMINISTRATION. There has been no de-
f1Hft IN he 1oc CT
1894, it was, in round numbers. $70,O00,-
900; in 1895, $42,O00,0 600, and in 1896.
$26,000000. The total is $13S. 600 900.
which represents the entire shortage
In government receipts since the Demo-
cratic administration was in power.
During the same time it has been
found necessary, in order to maintain
specie payments and to keep the gold
reserve even in the neighborhood of
$10O,O00,0o0, to issue United States bonds
to the amount of $262o0O,OOO We have,
therefore, gold purchased by the treas
ury by the sale of national bonds to
the amount of 1000 900 in excess of
the total treasury deficit. This is the
answer to the charge of Republican
speakers and writers in general, and
of the Republican candidate for the
presidency in particular, that the
United States has been borrower in
the market and has 'pawned its credit
solely because Of insufficient revenue.
If there had been revenue enough to
pay every dollar Of necessary disburse-
ments since Grover Cleveland took the
oath of Office, in 1893, we should still
have been obliged to sell S124, OO0, 900
worth Of bonds to maintain the gold
reserve against the earthquake shocks
of that financial distrust and recurring
panic that is the heritage of the Re-
publican silver legislation of $780,
That the country has need of a larger
revenue goes without saying. A ma
ton cannot find $4,000, coo of income
cut out Of its receipts at one slice and
not make good the loss. any more thar
an individual can maintain his bank
balance with a corresponding decrease
of deposits. An adequate revenue
should be provided, not as Mr. McKin-
ley proposes, by higher tariff duties,
which, as he asowed truly, in 1896,
are a means Of reducing revenue. but