The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-12-18
SOME POINTS IN GOVERNMENT
FINANCES.

The recent annual report Of the secretary
of the treasury contains figures which
seem to f~oreshadow a coming change in
government financial conditions. The sec
retary's estimates Of government revenues
and expenditures for the current fiscal
year ending June 80, 1904, showed a surplus
of $14,0Oo 900. This is much the smallest
surplus Of recent years, bur the estimates
for the next fiscal year. ending June 30.
American people have become so accus-
toned to annual SURPRISES that it Is not
altogether pleasant to contemplate a def
icit.
Further examination of the report shows
that the estimated deficit for the next fiscal
year is based on increased expenditures,
though there is also an estimated decrease
Of revenues in some lines. The revenues
from customs, which were 1854. AIS. 5s1 in
the last fiscal year, and which were esti-
mated at $3.50. 900. 900 for the current year.
are estimated at $3.50, OO, 600 for the year end
ing June 20. 1905-a decrease of $24, 479, 5S1
from 1898. If this is due to decreased i'm
portations of foreign products it may be
a healthy sign, but the loss or revenue is
a condition that must be met.
The main cause of the estimated deficit
is increased expenditures. The total or
binary expenditures OF the government,
which were $40, 323. $50 during the last fiscal
year. are m at $3.50. 7s7, 664 for the
current year. and at s727. f74.2O6 for the next.
The military establishment shows a graft
flying reduction of expenditures, viz: from
Sis. 1880 during the last fiscal year to
SIZE. 100000 during the current one, and an
estimated expenditures of 81. 1874, s13 during
the next.
By far the largest item of increased ex-
penditures is on account of the navy. These
were So. 61s.O 34 during the last fiscal year
and are estimated at $50, 900, 900 for the
current year and $50. 964, $50 for the next.
As Congress is committed to the policy Of
Increasing the navy it IS not likely this
item of expenditure will show any diminu-
ton for some years to come. The people
approve of the policy of Congress and do
not b~egrudge a dollar Of the money ex-
pended for Strengthening the navy, pro-
vided 1t is honestly and intelligently ex-
pended, but the fact remains that the bills
have to be paid. and this is a material fac
tor in the anticipated deficit.
There is nothing alarming in the pros
pect Of a deficit, because the government
is well prepared to deal with 1t, but 1t
should be taken into account by Congress
in shaping legislation. With a prospective
deficit in sight there should be no reduc-
ton of tariff nor further repeal of internal
revenue duties. and Congress should prac-
tice rigid economy In appropriations. Chair
man Hemenway. OF the committee on APP
preparations. will doubtless urge the neces-
sity of this and try to keep the deficit
down to as low a figure as possible.
When the deficit comes the secretary of
the treasury can meet II by drawing on
the existing surplus. His report shows
that on the 1st Of last November $40 ma
tiona1 bank repositories held si67. 329, SAL of
public moneys. II necessary the secretary
can draw on these deposits to meet current
expenses and while their withdrawal would
be disappointing to the banks it should
be no surprise. as the deposits were made
subject to the condition of withdrawal
whenever they might be needed by the
| government