The Grenada sentinel. [volume] (Grenada, Miss.) 1868-1955, 1908-11-21
MUST MEET DEFICIT
REPUBLICANS SAID TO cONTEM-
PLATE ISSUE OF BONDS.
Empty Treasury, Of Course, Will Help
Standpatters, Now in Control, In
Their Fight Against Tariff
Revision.

1t is said that a bond issue of $50.
0OO, 900 is contemplated in tho near flu.
ture. 1t is clear that more money is
needed with which to meet the ordi-
nary expenses of the government, the
usual receipts not being sufficient. The
treasury deficit now amounts to $45,-
O00, 600, with eight months of the fis-
cal year still to run. The working
balance in the treasury is under $780,
0OO, OOO, which is $40, 900, 900 less than
the amount deemed safe. The Octo-
Der deficit was more than $40, 600, 900,
and there is no indication of any i'm
provement. So it is altogether likely
that new bonds will have to be sold.
According to the New York Worlds
dispatch, these will be Panama bonds.
Theoretically" the New York paper
says, the money will be used in pay
ing for the construction of that amaz-
lngly expensive waterway" but
actually it will go into the general
till and be used for general purposes"
The World says:
1.-THE assertion will be made that
the proceeds will be covered into the
treasury to replace. the money taken
therefrom to pay canal construction
bills. The fact is, and will be, that
the issue of bonds will be forced by a
condition which compelled the issu-
ance of $685. 00, 900 bonds by the Cleve-
LAM administration, which was one of
the sins for which the Republicans of
the country held the Democratic party
responsible. On that occasion the
drains on the treasury induced by the
extravaganza of the preceding Repub-
lican administration forced Cleveland
to issue bonds 81 thai the gold reserve
OF the country could be kept good.
This time it is not the gold reserve
that must be made good. 1t is the gen
eral fund, for which the four-times-as-
extravagant Roosevelt administration
has been paying its bills, that is near
Ing completion, and must be replen-
ished by the issuance of reimburse
ment' bonds charged to tie Panama
canal account" .r.,4.
With the working balance down tc
$50, 000, 900, and still shrinking, and
with receipts falling behind disburse-
ments at the. rate of more than S1O.-
600, 900 a month because of the wan.
ton extravaganza of the administra
ton, there is, of course. nothing for it
to sell more bonds.
OF course, all this is very directly
related to the subject of tariff re.
form. 1t is announced hat though
Of the Wall street traders are
about tariff reform, most of
them are taking great comfort in the
fact that the condition of the treas
ury will make it impossible to max.
Of a cut in the tariff duties. 1t
will, they hold, "be impossible to do
any tariff reforming that will reduce
the income Of the government" and so
they are cheerful. 1.-The steel trust |
insiders" we are informed, take this
view OF the situation, and they are
smiling broadly at the promises Of
tariff reform" The method is really
very simple. All that you have to
is to blow in your money, create
deficit and sell bonds, and then go to
the people with the argument that
he tariff is not yielding sufficient rev
enue, and that, therefore, it will be
impossible to give any relief. OF
course, such a condition does limit the
possibility OF transferring articles to
he free list. Yet the case is not hope
ess, provided there is any purpose 10
zeal with it honestly. For the rev.
could be greatly increased by
owering many duties which are now
practically prohibitory, and so yield
10 revenue. A proper and scientific
'eform of the tariff would greatly in
;rease the revenues of the govern
With many of these duties
owered, it would be quite possible to
the free list ven under pres
mt conditions.
.