The Hawaiian gazette., 1908-07-31
THE AMERICAN
FISCAL YEAR
advertiser Correspondence, Copyright
by Frederic J. Haskin.)

WASHINGTON, ID. C., June SOTO.
morrow is the governmental New
Years Day, so fixed by Act of Con.
gress passed August &c, 1912, when the
fiscal year began to be reckoned from
July l. At half past four clock this
afternoon Uncle Sam IS bookkeepers
will close the accounts for the fiscal
year 1908 and open new ledgers for
the fiscal year 1909. Balances will not
be actually struck, however, for weeks
The red lines will not be drawn until
the receipt of the final reports cover
ing the transactions up to midnight of
June 80, 1908, in every city and hamlet
throughout the United States and from
every point, no matter how remote,
where disbursing officer or govern
,ment agent handles an American dol
lar. If the final reports of the col
lector of internal revenue at Honolulu
vary even to the extent of half
ounce snuff stamp, value three-six-
teenths of cent, the reports must be
returned for correction or verification
and make the return journey halfway
across the Pacific before the nation s
books are closed for the year.
The significance of the American fs
v
wonderful growth of the country. On
| ton, established the office of Secre,
tary of the Treasury, with a salary of
$4,000 year attached. Five years lat
er the current expenses of the gov
eminent, exclusive of the interest on
the public debt, aggregated $455,00O.
To meet the expenses of the govern
ment for the fiscal year 1908 Congress
appropriated upwards of $sG2,0O0, 900.
1t was estimated at the beginning of
the year that the receipts from all
sources would total something more
than 1914, 100000.
/ These calculations provided for sur
plus of $40 100000 in the revenues for
the current fiscal year, but it remains
| to be seen whether or not the books
will disclose such q happy state of af-
fairs. Beginning with the financial
stringency that developed early last
fall, there was a decline in the customs
and internal revenue receipts which
continued throughout the remainder of
the fiscal year. A considerable deficit
! is now apparent.
A fact in connection with the close
of the current fiscal year that will prob
ably give comfort to the prohibitionist
is that one of the largest items in the
reduction of the revenues of the govern.
ment is in the receipts from the tax
] on distilled spirits. The extent of the
falling off from this source cannot be
accurately stated prior to the appear
ance of the official report, but from
data now made public it is evident
that the receipts from distilled spirits
will show loss Of approximately
twenty million dollars as compared with
/ the fiscal year 1907. This will very
much more than overcome the gain
made by distilled spirits in the previous
fiscal year, when the receipts showed
an increase of upwards of twelve mil
lion dollars, or consumption of more
than eleven million gallons in excess of
! the Withdrawals during the fiscal year
1906. One feature, however, of the cur
rent years collections from distilled
spirits, calculated to be more or less
disquieting to the prohibitionist, is, de-
spite this evident reduction in the con.
sumption of ardent spirits, the figures
now available indicate an increase of
$500 retail dealers in intoxicating
liquors.
| The falling off in the receipts from
distilled spirits is due to three causes
/, the depression in business following the
monetary stringency which began last
fall; the use of grain alcohol, free of
tax, in the arts and industries; and the
passage of prohibitory laws. The loss
to the revenue, however, by reason of
the local option laws is not as great as
popularity supposed. Careful analysis
of Governmental cto tiof;ao ,,JotnI,, ia;
Gates that while the consumption of dis.
titled spirits, taking the country as a
whole, is increasing, the per capita con.
sumption is steadily decreasing. The
natural increase in the population and
ithe consequent opening up of new ter
fritory where the saloon is permitted is
at present outstripping the advance OF
the temperance wave.
On the other hand, the official report
promises to show a substantial increase
in the receipts from taxes on ferment
ed liquors, under which heading beer
is largely predominant. This increase
according to the figures now public,
should amount to a million or upwards
This, taken in connection with the fact
that the receipts from cigarettes, cleo.
margarine and adulterated butter also
! SNOW II SuDbtdntlhl increase, again en-
phasizes the truth of the statement
that history is in the habit Of repeating
itself. With the entrance of eight
money" the closing down of mills, the
reduction of fortunes, and lull in the
prosperity of the "spenders," the ap
pettes that formerly fed on high class
drinks, fancy cigars and "Grade u
creamery butter, turned to beer, cigar.
cites and oleomargarine. In times of
great and general prosperity the trick
is reversed, and the revenues plainly
reflect it.
notable innovation, from revenue
standpoint, and one which to some ex-
tent may account for the increased re-
ceipts from the tax on fermented IL
quors, was introduced during the fiscal
year just closing, almost entirely as a
result of the activities of the prohi-
bitionists. This is substance becom-
ing officially and popularity known as
" Temperance Beer. !" 1t is the off,
spring of the demand and desire for q
beverage to be sold in the prohibition
localities that win at one and the same
time escape the federal special tax or
| & 0ovaruunant liaanaatt and oyatd nroa