Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-04-05
MUST Be KEPT DOWN
Next Congress Will Have to
Be Economical.
Mr.. CANNON'S VIEW
RESULT OF A CONFERENCE WITH
SECRETARY SHAW.
Call on National Bank Depositaries
This Afternoon for S27 600 600
MR.. CANNON'S VIEW
Call on National Bank Depositaries
This Afternoon for $27, Ooo, 900
Of Government Funds.

Speaker Cannon spent an hour today with
Secretary Shaw discussing the finances of
the government. The Speaker desired 10
learn the exact status of affairs, and to
gather some figures, and he got what he
wanted. He learned enough to convince
him that in the next Congress the pruning
fork will have to be kept continuously in
operation. and that 1t will be long tim
before extravagant, even generous, ap-
preparations will be in order.
There will be deficit this fiscal year of
about $2O,00OOO0, and this will be in spite
OF the fact that there has not been a dollar
Of extraordinary expenditures On the
other hand, the income Of the government
mas been assisted by the repayment by the
Louisiana purchase exposition of 81, GOO 600
loaned that concern in the previous fiscal
year.
Without this money the deficit this
year would have run into the neighbor-
hood of $25,O00,0O0. Canal payments
nave been made out of regular receipts
put tnese payments this fiscal year have
been comparatively small, and will not
amout to over $3,000,000.
The Fiscal Situation.
There is less than three months of the
fiscal year remaining and the situation may
be seen at glance at the daily treasury
statement. Up to and including yesterday
the total receipts for the year had been
$ll6, 564.626, and the expenditures SAL. 494,-
1oo, fedVlnS denclt OF S24,929,4I9.
For the same period of the last fiscal
year the receipts were $414,699, 29S and the
expenditures SHOT, 723, 334. furnishing a sur
plus of $6975,364. There was a surplus of
s13,O00.O00 in the last fiscal year. A COM
parison of the two years shows that the
receipts this fiscal year show an increase
over last year of less than s., 600 900, while
the expenditures have increased the enor-
nous sum of 34,OOO,OO0
But 1t is not so much about this fiscal
year that the republican leaders are
bothering. 1t happens that the gov
eminent laid away in past years
and some of this is still in national bank
depostaries There is about $50, 100000 in
6epositaries over and above the amounts
put there for disbursing officers. This Will
take care of deficits that are not large for
some time, but 1t will not be many years
before that sum will be exhausted.
Call on the Banks.
In view of the fact that the government
may probably need the money in the next
pairing to make call on depositaries for
about $30.00O,Ot0 of the funds with them,
thus leaving something like s50,OO0OOO still
on deposit.
Secretary Shaw late this afternoon is
sued call on the national bank deposito-
ries to transfer to the government about
$27 ,0O0,OOO of the funds now deposited with
them This is nearly one-third of the total
on deposit The money is to be returned to
the government in equal installments on
May Is and June 1.
Secretary Shaw makes the withdrawal
from the banks not only to replenish the
working balance of the treasury proper,
but to have some funds on hand in case
the money market should need assistance
during the crop-moving season next fall
and early winter.
The appropriations for the next fiscal
year show many millions in excess of the
present fiscal year. Allowing for a small
increase in receipts from various sources
and for other things 1t is reasonable to
suppose that the deficit in the next fiscal
year will reach SO, 100000, which gives
Speaker Cannon and the republican leaders
something to think about.
For the succeeding fiscal year. there
fore, means will have to be found for in
creasing the revenues of the government
or for reducing expenses. Suggestions
of an additional tax on whisky and to-
bacco are already being made.