The citizen. (Frederick City, Md.) 1895-1923, 1908-07-10
TREASURY DEFICIT IS DUE
TO DECLINE IN CUSTOMS
Difference Compared With a Year
Ago is $144,000,000.
DEFICIT IS NEARLY $6O,0o0,UO0
surplus OF $s4,OOO,OOO Credited on
Books a Year Ago Wiped Out
Congress Generous in Appropria-
tons.

DOtkS ~ lear ASO Niptu Out
Congress Generous in Appropria-
tons.
Washington, D. C.-When the ifs
cal year closed June 80 there was a
deficit in the United States Trea Tlry
of approximately $60,00O,OOO TO the
last twelve months. This deficit ; to
be compared with a surplus one ear
ago of more than $S4,00O,000, SO the
real difference between the condition
of the treasury to-day and one year
ago is expressed by the sum of $144,-
100000.
The deficit was not foreseen until
after the money panic of last Novem-
Der and December. The country had
passed through severe trial when
Secretary Cortelyou sent his annual
report to Congress in December, yet
the Secretary was not able to see
what was to follow. for he predicted
surplus for the fiscal year ending
June so, 1908, of $4,000, 1000.
After that report was written the
commercial and financial world be-
gan to reap the fruits of panic. Both
imports and exports suffered along
with other lines of business, and soon
it became apparent that the current
income of the Government was about
to suffer severe impairment. The
decrease in customs collections was
especially marked, for the volume of
imported merchandise Immediately
diminished and has not yet recovered.
In the fiscal year ended June 80 the
receipts from all sources were $685.
100000 less than in the fiscal year
1907 and only trifie larger than
1906 In the year closed June 80 the
disbursements for all purposes were
1881, 100000 larger than in the fiscal
year 1907 They were larger than in
any year in the history of the country
with the exception of three years in
the Civil War period.
The decrease in receipts in the last
year has been due largely to the
panic of last fall and winter. The in
crease in expenditures is due to gen.
eral causes, but none of them will
cease TO exist in the coming fiscal Pc
riod. In fact the increase is due to
the growth of the Government in
large measure, and to some extent,
perhaps, to the generosity, not to say
extravaganza, of Congress.
The summary of receipts and ex-
penditures for the last fiscal year is
as follows:
Receipts from
Customs S2S5, 2S0,65
Internal revenue ...... ESQ, ia ,008
Miscellaneous ........ 63,501, 102
Total .............$5 80, 1876, 1853
Expenditures ......... 659,551, 755
Deficit ........... $59,655,992
The largest increase in expendi-
lures has been under the head of civil
and miscellaneous. The increase is
due to no particular item. The in
crease under this heading was S22,-
100000. The second largest increase
was for the naval establishment, the
disbursements being $21, 100000
more than last year. The navy now
costs the Government approximately
twice as much as it did in 1898, when
the war with Spain was being fought.
The increase in expenditures on ac-
count of public works, which amount
ed to SIT 100000 in the fiscal year
just closed, was not due entirely to
the work on the Panama Canal. The
improvements of rivers and harbors
called for an expenditure of about
100000, 700, and this despite the fact
that there was no regular river and
harbor bills calling for expenditures
on new projects this year. The con-
tinuing contracts, however, are so
many now that the annual expendi-
lures are very large.
The expenditures for pensions are
increasing to q remarkable degree,
although it was predicted only :wo
or three years ago that the limit had
been reached. The increase the last
year was S14,000,000. The cause of
this is new legislation, both in the
form of general and private bills.
The total expenditures on account of
pensions in the last year have been
s153,SS7,537.
In only nine years since the Civil
War period has there been a deficit
in the United States Treasury. This
years deficit is larger than in any
other since the Civil War. except IN
1894, when the figures were s69.-
SO3,260, and in 1899, when the ex-
cess of expenditures over receipts
was $50, 1853. The deficit in 1899
was due to large expenses of the war
With Spain.