Evening star. [volume] (Washington, D.C.) 1854-1972, 1897-12-11
THE ,DlNGLEY-.LAW
Its Author Explains the Causes of
ga - -
Deficit
SHOULD Be SURPLUS NEXT YEAR
Secretary Gage Forced to Include
Heavy Estimates.
STATEMENT TO THE HOUSE

Chairman Dingley of the ways and means
committee held the attention of the House
late yesterday afternoon while he explained
the state of the governments finances with
relation to expenditures and revenues.
Mr.. Dingley said:
1.-The Secretary of the Treasury estimates
and 1 think 1t is a conservative estimate,
estimating on the basis of business as it
exists today in this country, and not on
the improved basis which we think will
exist a year hence-that the revenue from
customs. from internal revenue and from
miscellaneous sources excluding receipts
from Pacific railroads. for the fiscal year
ending June 20. 1899. not including postal
receipts. viii he s390,oO0.OO0. If postal re-
oeipts are added, then the revenue for the
next fiscal year is estimated at sis2 500 600.
But We may crop postal receipts and postal
expenditures, far as paid by postal rev.
e1ue, because we are considering the 1les-
ton as 10 what our other expenditures to
be paid by tsxation will be. and what our
revenue. outside of postal receipts, prob
ably will be- =
The Estimates for Next Year.
The estimates submitted in the report
Of TIE Secretary of the Treasury as the
gentleman from Illinois CMr Cannon) so
ell explained yesterday. have caused much
misapprehensicn. In the estimate therein
ma6e-made. he states in accordance
with the provisions of law-the total ex-
penditurss for the fiscal year 1899 are
placed at $5e,cvo0oO. including postal ex-
re1ses paid by postal receipts. Excluding
these. the estimate is SAIL, 100000. to be
paid by taxation.
For the first time in the history Of the
country, the Secretary of the Treasury, as
he construes the law. is required by this
law TO insert in his estimates the amount
estimated by the army engineers which
can be expended for river and harbor i'm
provements for the next fiscal year. Under
the operation of that new statute the Sec
rotary of War sent to the Secretary of the
Treasury an estimate of the expenditures
for rivers and harbors for the next fiscal
year made by the engineers. and the Sec
rotary has explained in a note that he in
cludes il by requiem ent of law, and in his
rerort he has further stated that he does
not believe that all this amount ought to
be expended. -..
The result is that the estimate covers an
expenditure of si11. 100000 of which there is
s1:s1D.crS for public works. such rivers
and harbors. public buildings and coast de-
lenses Does the Secretary of the Treas
TRY believe that $4,000. 600 ought TO be ex
pended for these purposes during the next
fiscal year? No: he does not. Does the
Secretary of War believe it? No. He
states distinctly that he does not, and yet,
in obedience to that new law. this amount
appears in the estimate. What is the re-
suit? The apparent expenditures for the
next fiscal year are lifted suddenly $4,000
Coo-and expenditures, too, without author
ity OF law.
An Apparent Deficit.
Now. of course. with such an estimate
as that the Secretary of the Treasury is
forced-forced by the statute passed by the
last Congress-to declare that with an es-
tinnated revenue of $780, 900 600 there will
be deficit Of tweEty-one and a half mil
lions of course there would be. If this
Congress, if this administration, if the
President of the United States. if any Off
cial. any responsible person proposes to
lift the expenditures of this nation $50 0OO-
Gp in single year and to put that money
into public works. over and above the i'm
mense amounts that we have been expend-
Ing in that way during the past few years,
then. of course, there will be a deficiency.
No one has ever proposed any revenue
legislation that would certainly yield suffi-
ctent revenue in the next fiscal year, unless
there should be unexampled revival of
business within 4 few months, to meet an
expenditure of si11.J00.OO0 to be paid by
taxation, and | may aGd-and / violate no
confidence in SO saying-that neither the
Secretary of the Treasury nor the Presi-
dent nor any responsible person connected
with the government supposes for a mo-
Tent that Congress will tolerate any such
ate a deficit on the estimates of s21 500, COO
Now. what ought the expenditures for
the next nscai year to be? The expendi-
lures last year, to be paid by taxation.
were Saiaeooo0o. for the previous year they
were Si'2.Up.pD. and according to the es-
mates of the Secretary of the Treasury
the expenditures for the present fiscal
year will be Ss73,OO0,O0O. Is it not a fair
Judgment that the expenditures for the
next year ought not to exceed $3.50 600 OOO-
seven millions more than the Secretary's
estimate for the present fiscal year fif-
teen millions more than the expenditures
OF last year and twenty-eight millions more
than the expenditures OF two years ago.
II seems 10 me that this Is a fair judg-
ment respecting the matter. Now, if the
expenditures for the next fiscal wear shall
not rise above $3.50 600 600 then on the es-
innate of the Secretary of the Treasury
there VIII De q surplus of about S10OOO 900
III tne expenditures are to be increased
nearly Ao.WOOoU suddenly which no one
believes possible, of course there wouId
probably be a deficit next year But I
take II for granted that Congress. in its
wisdom. VIII see that there is reasonable
economy practiced in regard to all expendi-
lures. and will not increase its appropria-
tlonS beyond the amount that is required
bv increase Of population. for 1t must be
remembered that the expenditures for riv-
ers and harbors and coast defenses have
been enormously increased within two or
three years.
should BE n Surplus,
II the expenditures shall be kept down
10 a reasonable limit. making only the same
advances that have been made year by
year in the past in proportion to popula-
tlon- then the revenue of the next fiscal
year IL estimated correctly by the Secre-
tary OF the Treasury. will pay every ex-
penditure and leave surplus of $1,000 900
besides tApplaCse.) But If We are going
TO increase our expenditures S5O,OOOOO at
this Juncture at one stride, which / take
II for granted no one expects us to do then
dehciency would be certain, because no
Revenue legislation has ever anticipated any
such sudden rise of expenditure as that
And may say. with reference to the
framing of the revenue bill which became
law few months ago, that the estima te
ol the committee on ways and means was
mat this government required about So 12lA
per inhabtant in order to meet expepdi-
lures The estimate all through was made
on that basis. With the expenditures with
In that limit. there will be no difficulty in
having the revenue sufficient 10 meet them
the moment We shall have overcome the
obstacles that have~hee en- put IN our way by
aniicipatory impo-tations
Now, M Chairman want to saw a
single word with reference to the present
fiscal year The Secretary of the Treas ury
estimates a deficiency of S2S UOU9yD for th..