The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1908-01-03
CONGRESS MUST
GUT EXPENSES
A Deficit N Sight on Estimated
Expenditures and
Revenues.

of subcommittee. At the close of the
committees meeting today Chairman
Tawney dictated the following state
ment:
The Committee on Appropriations
| in Congress are confronted with a
situation which will require a very
material revision of the estimates SUBJ
mitted for public expenditures for the
| next fiscal year, ending June 80, 1909,
| within the possible and estimated
| revenues of the government.
| THE estimates submitted at the be-
ginning of last session of Congress for
the new current year totaled 1895, $3.50. :
| SAB. The estimates for the next fiscal
year, submitted at the beginning of
this session bn the book of estimates.
totaled 1896, 949, 23S, or an increase. in
| the estimated expenditures for the
next fiscal year over the current year
| of 500, 1888, 465. The estimated total
revenue for the next fiscal year is $685.
| 1901, while the actual revenue, in
| GLIDING postal revenues, received dur
| ing the last fiscal year-which total
revenue was larger than that of any
government--was only 6.725,339
1T Will be seen, therefore, that on
the basis of the estimated expenditures
and the estimated revenue for the next
fiscal year the expenditures as esti-
mated exceed the revenue by $11S,S26,-
277 This excess does not include esti-
mates for the regular deficiency. and
miscellaneous appropriations. which
20. a In
147. S99 Nor does it include any new
appropriations for spontaneous expen-
ditures. From this total of $11S,S26,277.
however, should be deducted $25,000,-
600, which is included in the estimated
expenditure for the redemption of ma
tional bank notes. This expenditure
is not made out of the current reve-i
nues, but out of the statutory fund
obtained from national banks, which
fund is not carried as part of the gov
ernment's revenues.
''Deducting the s25,00o.0o0 still leaves
a deficit of $SS.eOo,OOO between the es-
timated expenditures and the esti-
mated revenue, and shows the neces-
sity for a practical revision of the
estimates submitted by the several
subcommittee having Jurisdiction of
year. in order to keep expenditures
for that year within possible revenues
and thus to avoid deficiency.
TT also shows the practical impos-
sibility of Congress at this session au-
thorizing new governmental services
or the undertaking of new projects, |
appropriations 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
expenditures
From examination of a statement |
prepared by the Committee on Appro- |
priations it appears that the principal
increase in the expenditures for the
fiscal year ending June &c. 1909 is for
the military establishment. including |
the Army, the Navy and pensions.
This increase oyer the current appro-
priations for the military establish
ment amounts to almost $780, 900, |
as 1t does not include any estimate
whatever for new authorization, such, |
for instance, as the building of battle |
ships. Important Increases of esti- |
mates over the current revenues are:
For the Army. $11,121,251; for the
Navy, $26. S32 ,s42; for the Notifications, |
sS1, 545, 1884; for pensions, $4,900,000.
In view of the almost certain de- I
crease in estimated revenues for the |
next fiscal year, and also in view of
the fact that war does not threaten |
this country, it may be stated on the
highest authority that Congress, in re-
vising the estimated expenditures, win |
at this session endeavor to reduce
most of all the budget for the mainte- |
nance of the military establishment, |
rather than put the pruning knife to |
civil estimates.
Today's Treasury statement shows |
that the decrease in total government |
revenue for the last fifteen days of
November and the first fifteen days of
December was s3,S7S,S40. Members of |
the Appropriations Committee think |
that this rate of decrease from the |
revenues of the first part of the cur
rent year will not grow less. If this l.
shall be so, a deficit of $31,000,006 will |
have occurred by June 80, 1908. There |
was, however, at the close of the last |
fiscal year a surplus on hand of reve-
nue. over expenditures of 100000, and |
there is today in the several national
bank repositories $262, PA ,319 due the
United States. Thus, while an antici- !
pated deficit of ss1, at the end
of the current year will be an actual
deficit, its creation would call for no
issue of bonds for betrayal. -
As current appropriations are pro-
vided for by current revenue, and as
all expenditures for the current year
have been authorized, the Sixtieth /
Congress in taking into account pos
sible decrease of revenues, considers
only the twelve months to follow June
80, 1907. 1t is the opinion of some
members of the Appropriations Com
mittee, among them Chairman Taw-
ney and Representative Keifer of
Ohio. that the indicated decrease will
continue through that period. Hence,
the closest scrutiny Will, be given to
all measures proposing appropriations
of any kind and new authorizations
prominent among them in bills thus
far introduced being public buildings
will be subjected to a more than ordi-
nary consideration.
THE situation as it presents ITSELF
said Keifer, may mean after we get
down to business that not a single bill
calling for the erection of a public