The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1909-01-28
DEFICIT NOT TIE CAUSE.

D1f1ClI NOI IHE CAUSE.
The attitude of the "let-well-
enough-alone" tariff gentlemen in
congress in not particularly in favor
OF a reduction of the tariff, and they
assume to cite the present deficit as
the reason why nothing should be
done until the country is back ON a
paying basis. The Omaha Bee very
succinctly makes reference to this
question in the following article:
Some of the standpatters in on
gress are apparently trying to make
capital out of the present condition
of the federal finances by using the
deficit, which promises to be still
larger at the end of the coming fiscal
year, as an argument against any
radical reduction of existing tariff
schedules. Some or the interviews
given out from the standpat leaders
would indicate that the government
was on the verge Of bankruptcy and
certain to be pushed over IL the sac
red tariff schedules are seriously
changed.
while the government has had
one exceedingly lean year in reve-
nues and Is having another, these
conditions vary from year to year,
without seriously disturbing the
balances. That there is need of tap
ping new sources of revenue is gen.
orally conceded, but that the need
Is sufficient to prevent a wholesome
revision Of the tariff is not apparent.
The expenses OF the current fiscal
year have exceeded the federal reve-
nues by about $64.00O,0 900 and the
deficit will probably be increased to
about 100000 by June 80, but
It should be understood that the gov
eminent has ample lunds to meet the
deficit and, in the ordinary run of
revenue, will probably have a gain
In receipts that will wipe out the
deficit and leave surplus in another
year or two.
THE deficit 1t should be remem
bered, too, has been caused more
by an increase of expenditures than
by a falling of in For the
ten-year period ending with June
80, 1907, the government has had
SURPRISES in six years and deficits
In four. The total expenditures for
the ten years we're $6,632,S00,S 14
and the total receipts $6,843,603,-
306, leaving a surplus for the ten
years Of 1920, SO2,293. On Deem
Der 81, 1907, the treasury balance,
including the funds on deposit in
national banks, was $267,135.653,
the largest In the nations history.
The available balance on December
81, 1908, was $163 ,s53,352 and
and $4,000, 900 Of this, m deposit
In national banks has been called in
by the treasury.
"The government has been living
on its surplus for the last year and
the surplus has been considerably,
reduced by the prevailing system of!
paying out OF current revenues some
expenses that should have been car
ried by bonds. The revenues of the
government Increased nearly 20 per
cent In the last decade and there is
no reason why, under normal condi-
lions, they should not show a sim
liar increase In the next ten years.
Nothing In the present situation n
In the future outlook offers any war
rant for the fear that an Intelligent
and honest revision of the tariff
schedules will seriously embarrass
the federal finances"
President-elect Taft is still hav-
ing a glorious time in the south. and
In coming northward. he is being
greeted by as large crowds in coming
up from the south to South Carolina.
Today Judge Taft goes aboard the
North Carolina with the seven en-
gineers who r to accompany him
on the trip to Panama to inspect the
canal before assuming his office as
president. and he will then be in
full knowledge of the great project
up-to-date. and will be able to talk
intelligently on the situation.
The Sioux Falls Argus-Leader
says that r. O. Richards has given
It an authorized interview con-
cerning the distribution Of the pat
ronage OF the state. and the
q A-.a.1 ~~Aa.S a.. t.n1i~oa - khlul,