The Washington times., 1909-01-04
Uncle Sam Totally Unable to
Pay Bills at Present
Heavy Rate.
PAIRING OF BILLS
WILL NOT ANSWER
Taxes on Coffee and Tea Among
the Remedies Suggested.
Deficit Grows.
By ]. c. WELLIVER.

peace, is heading inevitably toward a
bond issue to pay Government expenses
Is conceded by everybody Couversant
with the fiscal situation
The situation IS desperate from some
points of view. The Republican leaders
fully realize their responsibility. For
twelve years they have been I'm fuil con
troll. over seven years OF the time has
been under the Roosevelt Administrd-|
tiOn.
In his annual report Secretary Cortel-
you gave warning that the Government
is spending more than its income, and
viii probably continue to do so for
some years TO come. The Government
cannot easily apply ordinary business
methods 10 such a situation. reduce ex-|
peuses and seek more income The Gov
eminent, undertaking TO raise more in
come from the customs and internal
revenues, faces danger OF political Teyo-
luton. These sources OF revenue have
been squeezed to the limit of safe pOlit-
zeal hnanciering. Either expenses must
be less or bonds must be issued.
The Standard Oil systems great Ma
fiOnal City Bank has been urging a bond
issue. II is expected other banking III
Ierests VIII echo this, Tor bankers like
bonds. They are good investment, and
they constitute the basis OF national
bank circulation. which means that the
more bonds are in the market the more
elasticity there is 10 the currency.
Want Elastic Currency.
Elasticity is especially desired In such
times as the present 1t VIII be more
desired when business begins TO boom
and 10 demand increased circulation.
The first cause contributing 10 the
Of revenues IN the prosperous years,
making a huge surplus The Govern
ment found ways TO spend most of the
receipts. The Roosevelt Administration
has been fertile of expedieuts for spend
ing and the nation has approved. In
crease OF army and navy. public build
1ngs, conservation. waterway improve
ment, and score Of other big items
have been costly.
There is the charge of eAtravagance.
and against II is set the answer that
this has been an era of true nation
building The President has believed his
plans wise. and has frankly said pos
teTtty should pay part OF tile costs be-
cause II viii get the main DEMENT'S.
The figures OF revenue and exUerse
are startling when analysed.
Increase Is so Per Cent.
Since 1897 population has increased %
per cent and ret ordinary disburse-i
ordinary receipts have grown g per
cent, or from 847 to col millions
The largest increases in expenditure
have been for army and navy. The
War Department in 1908 spent almost
exactly the entire customs receipts for
1907. The army cost almost. $4,000 900
last year. which is more than the total
cost Of salaries. agriculture, forest con-
seTvatlon, waterways, rivers and har-
bOrs. public buildings, and all other
Government expenses except navy, In
dams. and pensions.
Indian and pension apDroprfations|
have increased little in the twelve wears
Indians cost about Sl3Ou0CgJ in 1897
and &1,500,00J more iu 1905 Pensions
were SlHm0oo0 iu 1897. ana only SIS
tfo,G00 more iu 1908 The navy almost
quadrupied its cost In the twelve years
In 1908 il cost Sis 900. 600. which was
twice the naval bill for the Spanish
war II was equal 90 the naval expense
Of the first three years OF the civil war.
Army and Navy Gets It.
About 5s cents out OF every dollar dis
buTsed by the Government in 1903 went
for army and navy. The question now
IS not whether these expenditures are
wise. The point is that they can not
be continued unless revenues are raised
Secretary CorteIyou estimates a. dehcit|
of }LApoooo) ju 1909, and s4gODOO in
1910 Estimated revenues for 1910 are
$'ssson,e" and the Secretary aIrsadv
has estimated for 1906, 600 10 Of expenses
The Appropriations Committee used to
have this power. but fl made the com
mittee so powerful that the authority
mad 10 be Withdrawn That was done
when Sam Randall was Speaker Now
inc only big appropriation bin made up
by the Appropriations Committee is the
lesie.tJEes executive and judicial bill
The Military Committee. The Naval Ar
fairs Committee, the Agricultural Com
mlttee, Indian Committee Pubic EI5fTd-
1ugs Committee Rivers and Tfarb0rs
S1Inmlttees aud SO on make ND their
huge bills Independently. neither paws
any attention % the others There is
no co-operauon5 rather each thinks 10
has done best service when it has got
the largest slice. The climax of s1lch a
condition is the statement that Iu 1908
Congress appropriated 81 .g18 J-H.llG while
standing face 10 face with an estimate
Of Fls9s 10000 receipts.
The Ways and Means Committee is
now iu the struggle ID make both ends
meet and yet satisfy a demand for real
tariff revision. II VIII be ruIuOus poll
tics 20 issue bonds, and 10 viii be just as
TuluOus 10 fail 10 convince the country
that revision has been honest.
What May Be Done
Taxes on coffee. and possibly
tea increased revenue tax on beer, and
possibly restoration OF some of the
stamp taxes constitute the series or
suggested remedies. Duties on tea and
coffee would amount 10 adopting the es-
zence Of the English system. which the
pTOtccuOnlsta have always denounced;
and for political reasons DO is almost I'm
possible The other duties have always
been regarded as war expedieuts la this
country. To restore tHeu iu peaceable
times would be dangerous
Income tax is looked upon as impos7
sible iu view OF the Supreme Court
attitude Inheritance tax remains and
both the President and the President
elect are said 10 favor 81 strongly. But
il is "a radical measure which IS unlikely
To pass before conditions grow much
worse than they now are
Congress Is very strongly opposed 20
issuing bonds. Speaker Cannon has
stood constantly FOR more care I'm suend- !
ing money, and it must be said that he /
is coming into h. NEED or approval and
appreciation which decidedly contrasts /
with the public attitude toward him as /
displayed during the late campaign
The Speaker and his followers are de- /
1ermincd 10 do some pairing this session
4 70