The evening times. [volume] (Washington, D.C.) 1895-1902, 1900-12-06
IN DREAD OF 4 deficit
Treasury Officials Oppose a Large
Cut in War Taxes.
If the Senate Finance Committee In
sists On a Reduction of From Fifty
TO sixty billions, Shortage Is
said 10 Be IaevitaBIe ia I9O2-ssr.
Gage Favors s3o.ooO,OoO Decrease


variance with the leading members of the
Senate Finance Comasittee in their policy
of very large reduction In the war rev.
enue taxes of the country. The want of
| sympathy With the probable action of the
| Senate Com mittee is emphasized now that
the House Ways and Means Committee
has decided to advocate changes in the
War Revenue law that will result in a
| SAG, DOC, oO0 reduetioa in the annual receipts
of the Government
Secretary Gage has not changed his
opinion expressed several weeks ago that
| the expected necessary expenditures of
| the Government demand that al least
four-hfths or twa-thirds OF the war reve-
nue. taxes Should still be imposed He
began by a4yocating a reduction Of only
| SIS, ,0G0, coo n the war taxes, and IT seemed
likely that TIE leading members of the
Ways and Meas Committee would adopt
this view.
When Senator AIdrich. Chairman Of the
Senate France Committee, and the lead
er OF the Senate in matters Of financial
policy. came TO Washington, be declared a
very large part of the war taxes ought
] 70 be takeI on He gave no figures, but
| implied thzt the reduction ought to be
from $50. .06i'. .9S0 to SO. 600, GOO.
This view was endorsed by Senator Al
lisoR and by Senator PIatt OF Couneeti-
cut, the second and third members, re-
| spectiyely, on the Finance Committe-
The ground Is taken =Sy these Senator's
that the work Of reduction should not Re
accomplished by piecemeai but that the
| first reduction should be so large as to
remove the necessity Of further revenue
tinkering during the next three or four
years. Secretary Gage, when he appear
ed before the meeting Of the Ways and
Means Committee some days ago, was
prepared to aSvocate reduction Of about
$50 coo. 600, a aG it was with great reIuct-
ance that he agreed to the cut OF $780,,
eco ESQ proposed by the committee
Presiden Mckinley. In his message. ad-
vocated :. suction OF only $50, ,9e0 coo. 1t
was evideIez = L.c time of the Ways and
Means Conli sIitee meeting that the House
fnaReiers had been influenced by the ex-
pec;ed = 7re radical action of the Senate
Finance Committee. apprecistiag IS they
did the fact thai the Senate cGnieTees On
the Revenue bill would probably carry
their point, as they usually do, in confer
ences on Important financial measures.
This influence was believed by many per
sons TO have prevailed 10 some extent
when the Ways and Means Committee an
noUneed yesterday determination TO
make the reduction $40. eco .ooo- II the Sen
ate COMMITTEES acts on its present views
the Sen&se members. when the Revenue
bin gees 70 conference will probably in
sist that the figure be s5e,e6e. zoe. and pos
sibly $50 .000. .e00
Leading Treasury officials whose busi-
ness il is to estimate the expenditures Of
the Government for more than 3 year aud
a half ahead OF The present tine. cannot
see how the Treasury can escape si;Eeut 6
deficit at the end OF the fiscal year 1902 Il
the wholesale reduction in war revenue re-
ceipts advocated by leading Republican
Senator's is finally adopted. There IS lit
tie probability, however, that deficit
would exist at the end OF the current is
cal year, for the reason that there is now
a surplus OF several millions IN the Treas
uTy which would not be oyercone II the
| few months subsequent 10 the passage Of
the proposed bill and prior 10 June 30.
/ Secretary Gage reached his conclusions
regarding the amendment of the War
Revenue law only after careful exam
; ination of the estimates Of expenditures
submitted 10 him by the heads Of every
executive department of the Government.
1 The coming expenses of the military es-
I Enlistment are large. and the Treasury
officials cannot see how they are likely
IN the Philippines should be brought TO
an unexpectedly early close or unless
| the plans of the Republican leaders for
a large standing army should fail. The
naval establishment also calls for large
expenditures during the next few years,
and the expenses in all departments are
by the natural development of the coun-
try.
It is adrnitfed at the Treasury Depart
ment that the receipts from customs and
from normal internal revenue taxes viii
undoubtedly be very large owing TO the
increasing prosperity of the country, but
/ they believe that the Presidents recon-
mendation that our resources be husband
ed in tine of prosperity and that a re
duction Of only S39.e00, coo In war taxes
; be made at this time. should be needed
In regard to the view Of Senator's on
the Finance Committee and others that
business interests demand a cessation Of
revenue t!nkaring the reply is made by
the Treasury officials that the business
community never objects to revenue leg
islation as long as the legislation IS
designed to diminish and not to increase
their burdens.