New-York tribune., 1906-08-04
THE lilly DEEIOIT.

The Treasury deficit for July was little more
than S13,5OOO0O, only 100000 less than the
deficit for July, 1905, which set certain advance
agents of calamity to talking about the GER
tainty of a deficit for 1905-'06 of lover $4,000
o0O" There was no such shortage at the end
of the year. On the contrary, there was sur
plus of nearly $25O00OOO Last months losing
balance is. therefore, in no sense ominous. Ex-
penditures in July are always beyond the nor
NAL and many times there have been deficits
OF 100000 and SSOo00O0 In the opening
months of years yielding net surpluses of from
$40, 100000 to $S0,00O.O00. The curious sugges-
ton IS made by "The Philadelphia Record
that Juy's shortage was due to tricky book
keeping. 1t contends that 'the favorable show
ling made at the end Of June was accomplished
"by deferring expenditures But the Treasury
had no inducement whatsoever to juggle with
its accounts, even if such juggling had been
possible 1t had predicted a surplus of only
SS000000, and would certainly not have gone
out of its way to falsify that prediction.
In fact, so far as the accidents of bookkeep-
ing enter into the problem, July has been dis
criminated against in quite another manner. A
year ago the annual settlement note of the Cen
tral Pacific Railroad amounting to 81, 100000
and due August l. was paid on July 81 and fig
ured as a July receipt This year the note,
amounting to 81, 760, $50, was not paid until Au-
gust l and is credited to August. fair COM
parlsOn would. therefore, show a gain on Treas
ury operations this July, not of 100000, but
of $3.O00O0O. The report for August makes
the losing balance to that date S1O,796,621,
against a losing balance on August 2, 1905, of
S15. .199, ,000-a difference of nearly $5,O00O00.
1t is evident that the Treasury is in better
condition than it was year ago, and that IL
Julys gain is maintained throughout the fiscal
year the surplus of 19O5'06 will be more than
doubled.
It may be conceded that this years expendi-
lures will be little larger than last years, for
the country is growing and the federal service
is rapidly expanding. But the national income
is also being increased as industry develops and
trade broadens. In the period up to August 2
the governments outlay was S7O,213, ,72l-an in
crease over last year of nearly S3O0000O But
receipts grew from $50, 100000 to S59,417. 900
or nearly $7,OOO,OO0. The gain on customs alone
was S5,OO0,O00. On the debit side of the sheet
the expenditures for the Panama Canal still fig
ure, for the first payments on the new bond
issue are not yet available. The cost Of public
works in July was 100000 greater than it
was in July, 1905, and this excess can probably
be credited to isthmian canal construction. But
under a law recently passed by Congress the
expense of canal building operations is to be
met from the proceeds Of bond sales, and any
money disbursed for canal purposes since July
can be restored to the governments cash ac-
count. With the canal drain stopped-as it now
finally is-the Treasury can look forward to q
period of settled and tranquil housekeeping, in
agreeable contrast with its hand-to-mouth
periences of the last three years.