The herald., 1897-12-26
Taken From Secretary
Cages Little Book
Mr.. DIGLEY'S; HIGH DUTIES
NOT PRODUCING AN ADEQUATE
REVENUE
Not as Much as the Wilson Act With
It's Low Duties-An Ever In
creasing Deficit

WASHINGTON, D. c., Dec. 2o.-(spe-
cial Correspondence to The Herald)
Secretary Gage has not written book
showing how to turn deficit into a
surplus, but he gives daily illustration
of his plan in the treasury daily state
ment, which is supposed to reflect ac-
curately the condition of the United
States treasury. He has been enabled
to do this from the sale of the Union
Pacific railroad for s53, 900 900, which will
net the government. in round figures,
$54, 100000. The money received from
that sale-so far s36,942, ,O52-is carried
as a receipt, and is turned into what is
termed the miscellaneous cash. On jan
uary various Pacific railroad bonds ma
ture for which the government is re-
sponsible, amounting to $29,904, ,953, and
under ordinary bookkeeping methods,
this amount would be considered an ex-
pense and be so charged up in the treas
ury operations. But this Is not Secre-
tary Cages idea of the proper method of
keeping the treasury accounts, and he
has issued instructions to his subordin-
ates not to include this large item in the
expenditures for January. The account
will simply be subtracted from the
available balance in the treasury and the
true amount on the treasury eXpendi-
lures for the month of January will be
Just $29, ,904,953 less than it should be,
and for the fiscal year ending June so,
1898, short by like sum. This method
of bookkeeping will enable the admin
istration to report that the deficit for
the year 1S97-9S is considerably less un-
der the Dingley bill than it was under the
Wilson bill, when in fact it will be many
millions more.
The Dingley act became a law July
~. 1897, and its effect first became ap-
parent in the treasury operations on
August /. Comparing the treasury de-
felt for the past two years on August l,
these figures are shown:
Year Deficit
August l, 1895 .S13. 6lS 900
August l. 1897 ........................ ii, 100000
After the Dingey bill has been in op-
GRAFTON for nearly five months, the def
tcit, excluding the Union Pacific re-
ceipts, as compared with the same date
under the Wilson bill, is:
Year Deficit.
December 20. 1896 Sal 6S5, 900
December 20. 1897 Observation-Disclosures. As. 390, 900
This ratio of deficit, if continued, will
result In the Ringley act producing s16,-
800, 600 year less than the Wilson act
for the year 1S95-96, when the deficit was
25,203,0 900, or would swell the deficit at
the end of the current fiscal year to S42,-
100000 If to this deficit is added, as
should be-but as Secretary Gage has
ordered should not be added-the S29,-
904,953 to be paid out January l next in
redeeming Pacific railroad bonds, the
true deficit would stand $72 900, OOO-
many millions greater than the largest
treasury deficit since 1864, the year pre-
ceding the close of the civil war.
Eliminating the Union Pacific pay
ments and continuing the comparison Of
the operations of the Wilson act with
the Dingley act, treasury figures show:
Since August l to date Receipts.
wilson act, 1896 Sis 9i3, 0D
Dingley act, 1897 ................. III. $50. 900
A truer exposition of the operations of
the Dingley act, as compared with the
Wilson act, is shown in the custom re-
ceipts:
Since July l to date Receipts.
Wilson act, 1896 6..................s s63 S92. 600
Dingley act, 1897 ..................5 IS 1872. 900
Under the operations of the Dingley
act provision permitting whisky to be
bottled in bond, stimulating the sale
temporarily in that article, the receipts
from internal revenue have increased
over like period covered by the Wilson
act. This is shown thus:
Since July to date Receipts
Wilson act. 1895 $7S 449, 600
Dingley act, 1897 7............,,.. so 212 600
Receipts from this source are now
falling off and resuming their normal
condition.
Treasury experts consider that a fair
and true test of the operation of a tariff
bill must certainly be shown after five
months of trial, and if it is to be a reve-
nue. producer or deficit producer, it will
appear. Taken in this light and COM
pared with the first nineteen days of De-
cember under the Wilson act, the Ding
ley act shows:
december 10 days Receipts.
ilsoh act ...Sl7, 1872 000
A|'HSiey dcl 1, i3i 600
Taken in any light or any view.
treasury figures do not show that the
Dingley act, with its high duties. is pro-
ducing as much revenue as the Wilson
act with it's low duties, while eXpendi-
lures are Increasing, and show for the
fiscal years 1897 to date an excess of ex-
penditures over the corresponding period
of 1896 of nearly SIC, 900, 900.
1t is these figures that are confronting
the administration, and inducing Secre
tary Gage to so manipulate the treasury
bookkeeping accounts, through the Pa
cihc railroad payments, as to cover up if
ne cannot entirely wipe out, the deficit
producedby the Dingley tariff act
HENRY f. ELAND.
A Fool and His Monev
CHICAGO Dep