Evening journal., 1905-09-06
DEFICIT
ABOUT S50,000,00.
Administration VIII be Called
on to Face a Most Seious
Problem
NANG ROuSLY CLOSE 70 RESERVE
lsy WnIIam Wolfl smlth.l


ithat will be used by tine next Con-
lgress, or viii either be operated2 This
~ the question that is now agitating
the public mind more or less. as some
means must be found to make re-
leeipts and expenditures nearer an
lequaiity The same question has been
iup befUe other congresses ana some
times the cleaver has been used and
az other timts the pairing knife but
lwhictever ID was. the cool results
lonly lasted Tor a brief space, and
then expenditures would once more
lbegin TO creep up. Except ON few
lextraordinary occasions ever since the
war between the States the receipts
have been IN excess Of the expendi-
lures and the government more than
once has had trouble TO find some way
by which TO dispose OF the surplus /
do not recall who IL was that first
gave utterance TO the trite saying that
IL was easier TO handle a surplus than
a deficit but whoever he was he
stumbled into maxim in political
economy that may cause the ap-
preaching Congress to deliberate very
seriously.
Usually Republican administra-
ton has had a surplus to deal with
and they have shown a fair degree OF
ability IN dealing with congested
treasury but they must now face the
other end of the proposition and it Is
likely TO be a very serious problem,
for the best treasury experts now es-
innate that the deficit for the current
fiscal year VIII be fully S50O0O00O.
The working balance at present is
about S110.000.0 900. It is necessary to
carry a very large working balance
land unless something is done either to
increase the revenue or cut down eX-
penditures the Treasury Will find itself
crowding dangerously close 60 the re-
lserve. The expenditures on account Of
the Panama Canal have been very
large, and viii likely continue large.
lbut it is expected that when Congress
meets there will be some canal legis-
llauon that viii work to the benefit OF
the treasury. The Spooner bill pro-
Vided for the issuance of $3.50. 900. 600
lcanal bonds and it is expected Con-
gress will early In the session author
ize the use of the bonds as a basis
for national bank circulation and that
will cause a demand for the bonds.
When those are sold the drain for ca
lnal purposes on the treasury will
lcease. Congress may provide that the
Treasury shall he reimbursed for its
outlay out Of the proceeds of the
bonds but if that is done the relief
win be only temporary unless another
bond issue is provided for as no one
lexpects the canal TO be built ON any
thing like the figures given when the
purchase was made.
The fact remains that the two ends
must be brought nearer together OF
the administration viii md Itself
threading dangerously close 10 the re-
lserve and that will cause embarrass-
ment when new Congress is to be
lchosen. How to bring the two ends
together is the problem and about as
many solutions have been offered as
There are members OF Congress and
newspaper correspondents in WASH
lington. 1t may be said that Congress
lie divided into two camps-one for in
lcreasing the revenues. the other for
reduction of expenditures. ana each
of these two camps are subdivided in
Ito half a dozen or more factions. Re
wise the tariff" says one; re-anact the
war taxes. says another place a tax
lon coffee cries a third. and he urges
such a tax would be good for our pos
sessions as il would encourage the
lcultivation Of coffee in Porto Rico.
Hawaii and the Philippines. In op-
position to this the poor mans cof-
Zee pot" is pointed 20. Still another
WING Of the financial doctors advocate
an increase of the tax on beer and
alcoholic stimulants but they viii be
lmet by a delegation urging that this
ltax ought TO be reduced. that il re-
lduced it viii actually result in an in
lcrease OF revenue as there would be
Ia greater demand for spirits i'm the
larts and sciences.
Representative McCleary, Of Mime
sofa. who has been spoken of as a
probable successor to Mr.. Hemenway
as chairman of the committee on ap-
lprOpriations. is reported as being de-
cidedly in favor of the proposition 70
tax coffee. On the question of in
creasing the revenues he summarizes
the various plans proposed as follows:
ii. Revise the tarif i'm such a way a.
to reduce the duties on some articles
and thereby cause their importation
lresulting in larger customs income foi
the government .. The imposition
of taxes on bank checks. stocks. bonds
deeds. mortgages. patent medicines
etc as was done during the Spanisl
war 8. Additional taxes upon to
bacco. whiskey, beer. etc. 4. Tax OF
lconee.
He says the first proposition cal
hardly be considered, and only as
last resort; the second and third h
is not prepared to favor, but thinks tn
fourth would be a great thing for tn
= country. II is reported that Speake
$. Cannon and Secretary shaw are bot
N opposed TO any legislation looking TO
AZ ward increasing the revenue on tn
ground that it would unsettle bust
ness and stop the era of prosperity.
- Is also said that Senator Hemenwa
has Joined this side and is now a
ACKNOWLEDGED stand -patter If not
= favor of increasing revenue they mus
; favor reduction of expenses, but riEh
! there is a snag for them. To brin
the expenditures down 10 the revenu
the cleaver will have 20 be used wit
lforce; the pairing knife viii not do
VIII the oleaver be put In operation
The army. the navy. the river an
= harbor and public building advocate
will object even 10 the pairing knit
and will they not revolt II the cleave
is substituted? All this. with rail
road rate and ship subsidy legislatio
win make merry times during IN
= next session.
Representative McCleary talks on
very plainly on the tariff question. II
- opnoees revision Of the tariff and On