The Birmingham age-herald., 1907-12-18
Government Expenditures Must Be CurtaiIed During Next
 Two Years
DEFICIENCY IN SIGHT
 INSTEAD OF 4 SURPLUS
Chairman of Appropriations Commit, tee Declares That Many Great Projects Will Be Held Up
 For Want of Finances.

Washington, December 17-Chair- man Tawney of the House committee on appropriations, which was appointed yesterday by Speaker Cannon, effected it's organization today by the appoint ment of subcommittee as follows:
 Sundry, y,Civil-Tawney, Smith. Brown low, Fitzgerald and Sherley.
 gham, Gillett Brick, Livingston and Burleson.
 District of Columbia-Gardner Mad ley, Vreeland, Burleson and Bowers.
 Pensions-Keifer, Gardner, Brownlow Bowers and Livingston.
 Fortifcations-Smith, Graf, Gillett, Shirley and Fitzgerald.
 Defciences-Tawney, vreeland, Keif- CT, Brundige, Jr., and Livingston.
 Permanent Appropriations = Brike, Graf Madden, Brundige, Jr.. and Burleson.
 At the close of the committees meet ing today Chairman Tawney dictated the following statement:
 Tawney's Statement.
 "The committee on appropriations d situation which will require a very material revision of the items sub mitted for public expenditures for the the next fiscal year ending June 30, 1909. in order to keep the appropria tions within the possible and estimated revenues of the government.
 sThe estimates submitted at the be- ginning of last session of Congress for the new current year totalled $S95. 690,- 643. The estimates for the next fiscal year, submitted at the beginning~~of this session in the book of estimates totaled s996, ,s49.2SS, or an increase in the estimates expenditures for the next fiscal year over the current year of S10,25S,645. The estimated total of the next fiscal year is $S7S, S,123,011, while the actual revenue, including postal revenues received during the last fiscal year which total revenue was larger than that of any previous year in the history of the government was only $S46, ,339.
 Ut will be seen therefore, that on the basis of the estimated expendi- lures and the estimated revenue for the next fiscal year, the expenditures as estimated exceed the revenue by s11S,S2627 This excess does not in- clude estimates for the regular de- fciency and miscellaneous appropria- tions which for the current year amount to $13147, Sg9. Nor does it in- elude any new appropriations for spon- taneous expenses From this excess total of SIS, S,S26,277, however, should be deducted $25,000000 which Is in cluded in the estimated expenditures for the redemption of national bank iS out of the current revenues, but out of the statutory funds obtained from na- tional banks, which fund is not carried as part of the governments reserves.
 Deficiency In Sight.
 "Deductingthe s25,000.000 leaves de- fciency of sS3,00O 900 between the esti- mated expenditures and the estimated revenue and shows the necessity for a revision of the estimates submitted by the several subcommittees having juris- diction of the appropriations for the next fiscal year, in order to keep ex- penditures for that year within possi- ble revenues and thus to avoid a de- fciency.
 "It also shows the practical mpossi- bility of Congress at this session au- thorlzing new government services or the undertaking of new projects, appro- priations for which would have to be met out of the revenue incoming for the next fiscal year. unless other provision is made for meeting such administration ex- penses than to require them to be de- frayed out of the current revenues of the government.
 oFrom an examination proposed by the committee on appropriations it is found the principal increase in the expenditures of the fiscal year ending June 1, 1909, Is military establishment, including the army, navy and pensions.
 The Pruning Knife.
 "This increase over the current appro- priations for the military establishment amounts almost to $100 900. 900 as it does not include any estimate whatever for new authoriza tions, such, for instance, as the building of battleships. Important increases of estimates over the current appropriations are as follows: For army, si1, ,12l, ,251; for the navy. s26,s32 ,S42; for Notifications s31 ,545934: for pensions, s4.- goo O0O In view of the almost certain decrease in estimated revenues for tho next fiscal year, and also in view of the fact that war does not threaten this coun- try, it may be stated on the highest au- thority that Congress in revising the es- timated accepted orders will at this ses- sion endeavor to reduce all of the budget for the military establishment, rather than put the pruning knife to civil es- timates'
 Today's treasury statement snows that the decrease in total government reve- nues for the last 15 days of November and the first 10 days of December was S3S7S.- $40 Members of the appropriations com- mittee think this rate of decrease from the revenues of the first part of the current year will not grow less. If this shall be so fiscal deficit of S31 900 600 will have accured by June 30, 1908. There was. however, at the close of the last fiscal year. surplus on hand of revc- nue over expenditures of $s4,000000 and there is today in the several national bank Repositories s262,2 ,274,319 due the Uni ted States.
 Bond Issue Necessary.
 Thus, while an anticipated deficit of $3l,- 000.000 at the end of the current year will be an actual deficit, its creation would c4l for no issue of bonds for de- frayal
 As current appropriations are provided