New-York tribune., 1905-06-03
DEFICITS AND REVENUE.

The Treasury reports a deficit for May Of
Ee,049066 and deficit for the eleven months
OF the fiscal year ended May 81 Of S36, ,63S, ga
There is nothing unusual or surprising in this
showing, for the situation which the Treas
ury now faces has long been discounted. It
has been apparent that the governments eX-
penditures would outrun its receipts this year
by from S25yo00,Ge0 10 S35,000.000, and when
ApriTs highly unfavorable balance sheet was
published there were prophets who declared
that the net deficit for the year would climb
to $40.000l00. Mays statement is, therefore
IN measure, reassurng. In April the excess
Of expenditures was 50, ,236, SIS. But last month
it was only 81, ,949, ,066. Treasury operations In
April, 1905, compared with those in April
1904, showed a net loss Of S3,75o,0O0. But
IN May there was a turn for the better.
Last year there was a deficit in that month
of S54, ,723, $40. This sum included two extraor
dinary expenditures not properly chargeable
10 last years income-the S40,000,000 paid to
the French Panama Canal Company for its
Panama Canal plant and franchises, and S10,-
100000 paid the Republic of Panama for
right Of way across the isthmus. The normal
excess Of expenditures was S4 723, $40. and this
included a loan of S4,5000O0 made to the
Louisiana Purchase Exposition. If, for pur-
poses Of comparison, this loan is charged as
current expenditure, May, 1905, registers a
gain Of S1,750,000 over May, 1904 If it is not
so counted, the loss for the month is about
S2,500'00O, and this latter figure represents only
about the average monthly loss suffered by the
Treasury on this years operations.
After eleven months the deficit for 1904IO5
stands at S36, ,63S, ,624 How much will it be
reduced between now and July /? Last year
June showed @ surplus of about Sl1 100000
It seems reasonable to expect this year a sur
Win Of T.
the net deficit viii fall to S30,0G0OOO, exceeding
by about S12,oo0,000 the estimate sent by the
Secretary Of the Treasury TO Congress some
eighteen months ago.
Receipts this year show no shrinkage COM
pared with last year. In fact, this years total
for The eleven months-S495, ,473, ,0s2-is larger
by S2,400,000 than last years. But expendi-
tures-omitting frem last years count the S50.-
100000 spent on the isthmian canal plant and
canal strip-show a material increase. Last
year they were S495. COO OOO-in round numbers
Now they are S532, 600 900. OF this increase of
S37,O000o0 nearly half has gone TO the navy.
Last year for construction and maintenance the
navy took S93 coo. This year 1t has taken
Sos. $50, 600. For the full year the cost of the
naval establishment Will probably reach S115,-
o00,000-about S150o0000 more than the ap-
preparation for 1905'O6. The army has cost
about SSoo0,ooo more than last year. The civil
and miscellaneous account has been about &c.
100000 larger and the Indian account about
100000 larger.
Secretary Taft. addressing the Ohio Republi-
can Convention last week, advocated the reim-
position Of some OF the taxes rernitted by the
repeal legislation OF 1901 and 1902. Congress,
he contended, should not be held to too narrow
and cramping programme OF economy
The Txeasury's experiences this year seem