Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-12-09
THE EXPECTED DEFICIT
Will Be Made Basis for Argu-
ment in Congress.
TREASURY'S ESTIMATES
SURPLUS FOR PRESENT FISCAL
YEAR ONLY $4,000, 600.
Government Expenses Have Been
Steadily Increasing for Years
Isthmian Canal Outlay.

Rv far the most important part OF the
annual report of Secretary Shaw, just sub
nitted TO Congress- is that which estimates
a deficit of $4,000, 146 for the fiscal year
ending June 30 1905, and which estimates
that the surplus for the present nscai
year will be only $14.OO0.OO0. The estimates
of secretaries Of the treasury are not al
wavs accurate, but they represent the pest
Information in the possession OF any omcla4
of the United States government, ana MT
Shaw's estimate will be made the basis TOT
much comment and many speeches. From
immense annual excess Of revenues over ex-
penditures in recent years the tendency Is
now to that miserable condition OF de-
f1ciency in the governments business
Decrease in the Surplus.
For the fiscal year ended June ~ i9oZ'
the surplus was nearly S1OO0oO,OOOO$SI'Io''-
375, to be accurate. For the last hscai
year. ended June 80 last. the surplus was
ga. 297. .667. but it will probably be many
wears before the books of Uncle Sam Will
again make such a favorable showing.
Prodigious increase in expenditures year
by wear and falling off in receipts Will
cause the balance this year to pe daheer-
ously close to the wrong side, and propaply
on that side at the close or the next nscal
wear. From huge cash balances and money
To burn the treaSu er Is beginning 10
stare in the face a dwindling OF the Dig
cash balance, a yearly dehcit, ana TINS IA IA
the face of the administration pollcy 10
spend close to s2O0,OOO,OIO In building
canal across the Isthmus of Panama. Ow-
ing to the accumulation OF money curing
the last five or six years the treasury Is
in position to pay the first $oOOOOOOO OF
the cost of the canal in cash. After that
time must determine whether the cost OF
construction will be met entirely from
bond issues. thereby increasing the bonded
debt of the country. or Party fssyes sron 'asA
The governments expenses nave peeh
steadily increasing for years. For tne
fiscal year 1902 the total expenses, inciud-
ing the postal service, were $593, 3,OSS.SOa.
DHring the fiscal year 1903 the expendi-
lures ran up to $64O. .323,45O. For the pres
ent fiscal year they are estimated at 1884,
767 G64, which is probably below what the
figures will be, and for the fiscal year 1905
Secretary Shaw estimates the expenditures
at $727. ,2O6. He places the receipts this
fiscal year at s674, ,767 ,664 and estimates
that they will be s704 ,472, ,06O in 1905.
The Deficit as an Argument.
These figures are full of political argu-
ment for both parties. To the stand-pat
republicans the estimated deficit will be
big stone wall behind which they will at
tempt to shelter themselves from de-
mand for the revision of the tariff. While
the democratic campaign Of revision OF
the tariff, 1t Is said. does not necessarily
mean a cutting down of revenues-leaders
declare it merely means readjustment OF
schedules-revision would not increase the
receipts from customs. The customs re-
ceipts have been steadily falling since July
1, plainly indicating reduction OF imports
In anticipation of possible hard times. The
receipts in the future will increase or de-
crease, according to the financial condition
of the country. Revision would undoubt-
edly mean a lowering of duties to some
extent, and consequently a decrease in the
total amount of revenue coming in from
customs The republicans will ring this to
the turn.
But the democrats will point out that
the republican party is responsible for the
huge Increase in expenditures each year,
and that this policy Of alleged lavishness
and waste has been created wholly be-
cause Of the high tariff rates. The cry will
be to reduce expenditures and revise the
tariff, not SO much with the view of re-
ducing the income of the government, but
to adjusting the schedules so that the In
terests that are best able to pay heavily
shall do so, and that the burden shall be
lifted from the shoulders Of others.
So will the figures be used by each party,
and 1t will remain to be seen which side
will profit by the arguments that will fol-
low.