The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-01-07
Uncle Sam Spending More Than
His Income.
BIG SUNS EXPENDED,
Large Increase in the Army and
Navy.
Mr.. COFtelyOu Estimates 1909
Deficit at ia Million.

DaaGa.
IS heading inevitably toward a bond
issue to pay government expenses is
conceded by everybody conversant
with the fiscal situation. The situa-
ton IS desperate from some points of
view The Republican leaders fully
realize the responsibility For twelve
years they have been in full control.
over seven years Of the time has been
under the Roosevelt administration.
In his annual report Secretary
Cortelyou gave warning that the gov
erHment is spending more than its
income, and will probably continue to
DO so far some years to come. The
government cannot easily apply ordi-
nary business methods to such a
situation; reduce expenses and seek
more income The government, un-
dertakfng to raise more income from
the customs and internal revenues,
races danger. of political revolution.
5IneSe sources of revenues have been
squeezed to the limit of safe political
nnancler1ng- Either expenses must
be less or bonds must be issued.
The Standard Oil systems great Ma
t1onal City bank has been urging
oond issue It is expected other bank
ing interests will echo this, for bank
ers IKE bonds They are good invest
mentS, and they constitute the basis
OF national circulation, which means
that the more bonds are in the. market
the more elasticity there is to the cur
rency. Elasticity is especially desired
in such times as the present 1t will
be more desired when business begins
to boom and to demand increased cir
cu1atiOn-
The first cause contributing to the
present situation was the great influx
of revenues in the prosperous years
making huge surplus The govern
ment found ways to spend most of the
recefpts- The Roosevelt administra-
ton has been fertile of expedfents for
proved. Increase of army and navy,
public buildings. conservation. water
ways improvements, and a score OF
other big items have been costly.
There IS the charge of extraEa-
gance, and against it is set the
answer that this has been an era of
true nation building. The president
has believed his plans wise, and has
part of the costs because it will get
the main benefits
The figures of revenue and expenses
are startling when analyzed. Since
1887 population has>fncreased p per
cent and net ordinary disbursements
of government so per cent Net ordf-
nary receipts have grown 72 per cent
or from 347 to 6o7 millions
The largest Increases In expendf-
lures have been for army and navy
The war department in 1905 spent al
most exactly the entire customs re-
ceipts for 1907 The army cost al
most $176,00O.090 last year, which is
more than the total cost of salaries.
agriculture, forest conservation.
waterways, rivers and harbors, pub
lie buildings and all other govern
ment expenses except navy. Indians
Indians and pension approximations
have increased little in the twelve
years Indians cost about s130e0,0O0 in |
1887, and $500 600 more ia 1905 Pen
sfOns were $141 ,0e0, 900 in 1907 and only
$4,000, 900 more in 1905 The navy al |
most Quadrup1ed its cost in the twelve |
years In 1908 it cost $11s. 600 which |
was the naval bill for the Spanish war. |
1t was equal to the naval expense of /
the first three years of the civil war
About SO cents out of every dollar /
by. the government in 1908 /
went for army and navy. The question |
now is whether these expenditures are
be continued unless revenues are
raised. Secretary CorteIyou estimates
a deficit of $114, 900 in 1909 and $143,- /
100000 in 1910. Estimated revenues for
1909 are s7s9, ,Oo0, 600. and the secretary
already has estimated for $500. 100000 OF
expenses
The appropriations committee used to
lave this power. but it made the COM
nerce so powerful that the authority
had to be withdrawn That was done |
when Sam Randall was speaker Now
the only big approprfationsb bill made UP
oy the appropriations committee is the
legislative. executive and judicial bill
The military committee. the naval COM
11ittee the agricultural committee In
iian committee. public buildings COM
nfttee rivers and harbors committee,
and so on, make up their huge bill in
1ependently; neither pays any atten-
ton to the others. There is no CO.
operation: rather each thinks it has
lone best service when It has got the
largest slice The climax Of such a
condition is the statement that. in 1903
congress appropriated $1.00S 000, 600
while standing face to face with an
estimate OF $7S9 100000 receipts
The ways and means committee is
now in the struggle to make both ends
meet and yet satisfy a demand for real
tariff revision It will be rufnous poll
tics to issue bonds, and IT will be just
as ruinous to fail to convince the coun-
Try that revision has been honest
Taxes on coffee, and possibly tea: in
creased revenue tax on beer; and pos
sibIy restoration of some of the stamp
-axes constitute the series of suggest
ID remedies Duties on tea and coffee
would amount to adopting the essence
IF the English system which the pro-
.ectioniSts have always denounced. and II
for political reasons it is almost inn
possible The other duties have always u
been regarded as war expendients IN
his country To restore them in peace
abIe times would be dangerous. II
Income tax is looked upon as iu7pos- /,
sibIe in view of the supreme courts at Il
.itude Inheritance tax remains and 1
10th President Roosevelt and Presf- !
fent-eIect Taft. are said to favor il
strongly But It is radical measure {
which is unlikely to pass before condi- Z
ions grow much worse than they now +,
1cr~~a~~ "a vnrv S4rorxTv onuoaas to II