Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1905-07-06
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DEFICIT NOT A MENACE.
This the View Of Congressman BOutell
Therefore lie sees No Need Of
lnCrcnscd RcYcnucA.

Representative Henry Sherman Boutcll.
an influential member of tho ways and
means committee, argues forcibly that
the present deficit constitutes no menace
to the government, and affords no
argument for an immediate increase in
revenues. says a Washington special to
the Boston Transcript. week from Fri
day he said to the Transcript cores
pendent 1.-The books will close for the
year. showing the government has ex-
pended $3.50, 100000. aside from the postal
establishment, and Will have received
s''3cO.WO in revenue, making deficit
OF S2'WO.0N Doctors of finance all over
the country will hasten to point out the
defects IN our present revenue laws.
Politicians will insist that these laws are
thing must be promptly done. IN point
OF fact the deficit will create no uneasi-
ness in the minds of those who care to
inform themselves regarding the treas
ury's condition. The great mistake of the
crltics is in falling to discriminate be-
tween the principles of private and pub
lie financicring
THE underlying object Of one is to
create yearly as large a surplus as pos
sible for investment. whereas the funda-
mental principle of public financierng is
to adjust each year as nearly as possible
revenues and expenditures. Collections
of revenues in excess of government ne
cessities withdraws moneys from the
avenues Of productive industry. The
creation of national surplus is often II
sign of greater danger than national de-
felt. which means more or less according
to the state OF the cash balance. When
the year closes the treasury will have in
addition to the sIO00O,000 gold reserve an
available cash balance OF sl3J. 600 600 to
begin the business of the fiscal year of
| 1886.
"t'ifty million dollars treasury experts
| consider the maximum necessary for n
safe working treasury balance. We thus
| have withdrawn from public circulation
$50 100000 more than is needed by the
government, which could stand deficit
equal to the present one for three years
more without reducing the balance to a
point where it would be necessary to in
crease the revenue in order to avoid bor-
rowing money. Such a deficit is an en-
tirely different thing now from what it
was in lS49-S, when any deficit meant Dor
rowing. The only way to-day in which
an abnormal cash balance can he reduced
| to the normal amount is by refraining
| from further taxation. and this should
he done. The condition of the revenues
thus affords no argument in favor uf
their increase. either in additional tariff
or internal revenue taxes.
| Prof. ii. G. Adams in his book on
| Public Debts" makes clear this distnc-
ton between the public and the private
ltinanciering. He even shows that the de-
STABILITY of ending each fiscal year with
"A small deficit. rather than with a sur
plus, because of the stimulus 1t gives "a
careful. economical expenditures. by con-
trast with large balances. which are al
WAYS % temptation to extravaganza.
1.-TWO years ago our available cash bal
lance was over S20O,O0O.OO. Our deficit last
year was So 900, including $780, O,0Ot
lpaymcnts on Panama and A.j0O,OoO to the
st. Louis Exposition. This year there
lhaye been no unsual OUTLAWS, and our nor
NAL expenditures have exceeded our nor
NAL income To the extent noted. but any
Modification OF our revenue laws whct
would at once increase our revenues, per
lhaps creating a surplus at the end of the
incxt Gsca, year, and still leaving the pres
lent unnecessarily large balance In the
Treasury, would be most unfortunate.'