New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-12-08
FOR RETRENCHMENT
NdCTE.fGH REPORTS
HIS ESTIMATES.
sims at Big Reduction in
Erocutiue Department
Deficit.

washington. pec. 7.-Retrenchment rules
the estimate OF executive expenditures OF
the government FOR the coming year The
annual report OF Secretary MacVeash Of
the Treasury. made public to-day. conforms
with President Taft's policy Of greater
economy in administration. At the outset
the Secretary says:
ecutve departments for the fiscal year
~. submitted herewith. are the result
of great attention on the part Of heads OF
departments. The consideration OF these
estimates was taken up at an unusually
early time ana continued until now. The
aim has been TO reduce them 10 as low
amounts a. Is practicable, in conformity
with the policy az the administration TO
recognize practically the resent and pres
ent disparity between revenues and OK
pcuuitures. and 10 seek the necessary ad-
lustment through reduced expenditures
Inc one hand and needed revenues on the
other.
TIE total estimates for 1917. including tire
naval building programme. are Scsil 49,
~ y Excluding the Increase in the
Panama Canal estimates. the total esti-
mates for 1911 show a decrease OF sSs,eii.-
90 - under tho appropriations for 1910.
Including the increase IN the Panama Canal
estimates. the total estimates for 1911 show
a decrease Of sf2.slS.Si9 - under the appIO-
Vrlations FOR 1919
programme Was not included in the esti-
mates submitted TO the Congress. IL is.
therefore. a matter Of interest 10 note that
when The naval building programme Is
eliminated from tho estimates for the fiscal
wears 1910 and 1911, the total estimates for
1911 are So al AZ 20 less than the total es'i-
mates for the fiscal year ending June 20.
1910
The increasing appropriations from year
20 wear have become a recognized incident
~ The general groNth OF the governments
business. due 20 tho growth Of the country
and the increase in the governments occu-
IA q n
estimates. therefore. which shows no in
crease over previous years means that a
large retrenchment has been made This
sppes not only 10 the total estimates az
TIC department., but TO the estimates ~ its
INDIVIDUAL branches. 20 mat estimates
showing reduction ~ totals is double
reuenchmant-a retrenchment Of the act
nal amount reduced and a ret1enchment
~ re usual increase.
INTENTIONAL ENAGGERATIONs
The estimates submitted have no inten-
tioual eNagseration In them. II az any
previous tins there was shown a tendency
10 eNaEgerate estimates without an eN-
rectation Of their fun appropriation, the
case is now quite different While the final
authority In appropriations rests with Con-
gresS. n h proper 10 present the estimates
Tor the coming year as careful measure
of the actual and irreducible needs of the
government.
The estima,es Of receipts. Uith>their very
long look ahead. are always subject 10
many Hicissltudes, and perhaps never more
fhan now, when the revenue results OF the
new fhFH law are SIN largely un0e1er-
mined. when the new conditions affecting
the internal revenue from distilled spirits
and fermented liquors are still factor
and when the corporation tax Is Vet
executed. The estimates must therefore be
taken the hest under the circumstances.
For the fiscal year 1910 the ordinary re-
,eipts arc estimated at s6ss, 0oO0ao and the
ordinary disbursements al sss2075, SO y,
showing ? deiicit I'm ordinary receipts OF
SsHS7e-o y When the payments on sc-
count ~ the Panama canal and the public
debt are added. The total deficit OF the
's-sl yoar lSlU = estnnated AZ stS.VsS.e0 -;
The estimated ordinary receipts for 1911
are S6s2.eaea. ana the estimated ordinary
appropriations 1886 o6s SO 81, or a surplus in
ordinary receipts 81 SSa.s3l .325 90 When tho
.'auema Canal estimates for 1911 are added
tEe surplus Is turned into a deficit OF sl2.-
-ls1 q.
since tho Treasury has not Al present,
either IN the hanks or I'm its vaults, mate
rally more than working balance. II will
deficits. 20 sell either bonds or certificates
~ Indebtedness. in due course n would
seem that il must be made practicable to
both estimate receipts. with a close ap-
Proclamation 10 the actual, and 20 provide
Tor their annual rise or fall BY the intro
6uCtion OF some flexible factors i'm our
annual taNat!on. The hard rigidity Of the
present revenue system. with its recurrent
economical agitations and its long intervals
~ nNifN. with no annual adjustment, can
uor always satisfy the government or the
nation.
ECONOMIES.
n IS favorable opportunities
created ~ tho influence Of the defcit-to
consider the governments outgo not alone
in iis totals but i'm its details, ana 10
institute proper economies. The time is
clearly ripe for wise and judicious savings
tn federal expenditure, ana 4 this should
10 successfully accomplished there Is
prospect that fhc example would influence
The overhsulinE Of state and municipal eN-
penditurcs. 10 tho great advantage OF the
nation
Tie Departments should undoubtedly
errutlnize every opportunity for reduction
he
1recesssrH.. however. i'm order 10 eject fun
Ternls uent reductions in appropriations, 10
siso take in hand every item az eNpendi-
ure and. among others. as instances, the
following The heavy losses TO the gov
eminent on second class mail matter.
which require p discrimination 20 be made
between mail matter dernanded by the in
ferrs's ~ the people and that which mere
~ promotes private gain. the excessive OK
Tfendilure for public buildings, which Sug-
Eest tic simple arrangement by which
such buildings viii he approved ana or
6ered Tor tle needs ~ the public service
oulr. the expenditures for public works
e0d tho expenditures for printing In
other words IN order 20 effect a real TO
Nfslon % tho expenditures or the govern
mont. 80 must be 4 general revision. both
- those concentrations which have their
'uitistive in the executive departments and
80 those that have their Initiative in the
Congress.
Secretary MacNcagh reviews the inef-
fcient organization OF the fiscal responsi-
Utilities a she executive and legislative
branches and the reorganization now in
progress. lie hopes there will he constant
progress away from the extreme disorgani-
cation of the past" and observes that even
= our country Is rich n cannot AFFORD 10 be
y holly unscientihc In its appropriations"
BANK CIRCULATION TAX.
Probably the most important recon-
nendstion made by the Secretary rs that
the tax on bank circulation secured by
Tinted States bonds hereafter deposited
hearing interest higher than = per cent
shall be- increased in exact proportion 10
the increase in the rate Of interest above
per cent. lie advises continuance Of the