Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-04-26
Repeated Deficits Threaten
the Government.
DRAWING ON DEPOSITS
REDUCED FROM $17O,OoO,ooo TO
$4,000, 900.
Enormous and Increased Cost of Rural
Free Delivery-Congressmen Not In
clined to Economize on System.

Secretary Shaw has had a conference with
Joseph s. Mccoy. the actuary of the treas
ury, and the latter is of the opinion that
the deficit for the fiscal year that will
draw to a close in a little over two months
will be close around s2O,U00,OO0, despite the
alarmist reports that it will reach S35,000,-
600 or more, based upon the fact that at
the present time it is, in round numbers,
about S30,000,O00. Mr.. Mccoy has delved
deeply into figures and percentages, and the
worst he can make out is that the deficit
will not exceed S23, 900 900, and will most
likely hover around the S2o,000,O00 mark
when the big books are balanced at the
close of the fiscal year. The estimate of
Secretary Shaw twenty months ago was
that the deficit would reach S1S000,o09.
Surplus From Now On.
The history of the business of the treas
ury is that the last two months of a fiscal
year. except under unusual conditions. sell
dom show a deficit. During the last six
or seven years the two months have shown
a surplus. May and June of last year fur
nished a surplus of over $10,O00,000 be-
tween them. The same kind of a business
this year would pull the existing deficit of
about $3O0OO,OD0 down to the figures of Mr.
Mccoy, but experts who watch the con-
ditions of the treasury are inclined to be-
lieve that the deficit will reach at least
so, GOO 600 and that 1t will not be less.
One year ago, at the present time, there
a surplus of about $3,0OO,0O0 in
round figures. The year closed with
surplus of about S13,O00OC0, showing
a gain from the present time of S10,-
100000. In the current fiscal year. however,
the receipts are very little above those of
last year, while the expenses are much
greater. The expenditures far this fiscal
year have exceeded the same period of last
year by $:}4. gu III. monthly average of
over $3,OU,OOO. while the receipts have in
creased above last year by only 81 .313. 251
or monthly average of less than S1oooOO
not especially good showing. Following
pretty closely the foregoing figures, the
probability would seem to be that the eX-
penditures for the next two months will
run SO far above the same time last year
as to materially deduct from the $4,000.
Geo that is counted upon to run the deficit
down to S200O0,00O.
A Serious Situation.
Aside from the question of the actual fig
ures which frequently disappoint treasury
experts and others, is the serious fact that
the government for the first year in seven
confronts large deficit, with the prospect
that the next fiscal year will see a still
larger one and the next larger than either.
Estimated appropriations for the fiscal
year beginning July l. 1905, make it sure
that the deficit for the next fiscal year will
reach at least $4,000 600, and there are
people who estimate it all the way to $50.
100000. 1t was by a mere scratch that the
last fiscal year was counted on the surplus
side. and this was done only by deducting
from the expenditures the $50, 600 600 pay
ments account of the canal and the
81 GOOoCO loan to the st. Louis exposition.
This loan was all repaid in the present
fiscal year and the payments were added to
the ordinary receipts, really swelling the
receipts to above the figures of the same
time last year. With these payments de-
Quoted, as done when the loan was
made in counting the surplus. the receipts
for the present fiscal year from regular
sources have fallen behind the last fiscal
year.
No Extraordinary Expenses.
The heavy deficit this fiscal year cannot
be charged to extraordinary expenditures
The only expenditures in the entire year
outside of the usual, have been on account
of the work on the Panama canal. The
total amount so far spent is less than
100000, so this item does not cut much
figure in the total. 1t is simply a case of
expenditures running way ahead of re-
ceipts, the same state of affairs that bank
rupts and impoverishes individuals The
government might be seriously embarrassed
under this condition but for the fact that
in past years, when it enjoyed big sur
plus each year, it made large deposits with
national bank depoSitarieS. These deposits
have been gradually drawn on until they
have been reduced from nearly $40 600 600
one year and half ago TO less than $50
oOooOo at this time, with a call now out
standing for the transfer to the treasury
of nearly $27,OO0,OOO of this total. These
transfers must be made within five or six
weeks The deposits with the banks will
then be reduced to something like 500, OOO,-
600, and can be still further called on to
meet the deficit that is certain each year
until Congress takes remedial steps.
What is to Be Done.
1t is foregone conclusion that Congress
will be forced to give careful consideration
to this question when it meets next winter
1t was cognizant of the situation at the
last session, but did nothing except try to
ccnfine the appropriations to as low a sum
possible. This policy can not be pur-
sued longer. and the plain, blunt ques don
must be settled of whether expenditures are
TO be greatly decreased or the receipts in
creased.
If expenditures are to be cut down,
where will the cutting take place? In
the navy? No. will answer the Presi-
dent and those who support his policy.
In the army? Again negative answer,
because the army is already down to the
minimum fixed by law. In public build
ings? In rivers and harbors? In the
post office department? Here is where
the expert points and declares that there
Is room for reduction of expenditures. In
what part? Why, in the rural free deliv-
cry, he answers.
Cost of Rural Delivery.
The rural free delivery will cost the
government over S21 600, 900 for the pres
ent fiscal year. Six years ago it started
as an experiment with an appropriation
of few hundred thousand dollars with
Machen at the head. 1t has developed
into one of the greatest political ma
chimes in history. Congressman can't do
without it and apparently don't want to
do without it. The appropriation for this
year was $20,S100O0. This, together
with an additional allowance of $500 900,
will be spent. Last year the total was
ST., 900, 900. For the next fiscal year the
total is sd 900. 600. The CONGRESSMAN de-