The Roswell daily record. [volume] (Roswell, N.M.) 1903-current, 1909-12-09
UNCLE SANS
TREASURY

| washington, Dec. 7.-Retranch-
lnent is the keynote in the estimates
of expenditures for the executive de-
partments of the for the
fiscal year, 1911, embodied in the an
nual eport of Franklin MacVeigh as
Secretary OF his treasury, made pub
lie today. This is in line with Presi-
dent Taft's declared policy of greater
economy in administering the affairs
of the government.
The total estimates for 1911 are
$671. 2SS.075, which are less by $751;
663.091 than the appropriations for
1910 and $94, 001 ,493 less thar the es-
Inmates for 1909. The total estimat-
ed receipts for the current year ag-
gresate S64S 100000 for 1911 about
S672, 100000 leaving an ordinary de-
felt FOR the current year of $34,075,-
620. ard for 1911 a surplus of S4S,775,-
449. Adding the payments on account
of the Panama ana and the public
debt. the total deficit of the present
year becomes $73,075,6 20, and for 1911
a surplus of $711,925.
Secretary NacVeagh emphasizing
the hard rigidity of the present reve.
nue. srstem. with its recurrent econo-
mical asitations and its long intervals
of fiNity," says il will be necessary
10 meet these deficits to sell either
bonds or certificates of Indebtedness.
In due course" he adds, lit would
seem That it must be made practical
bic to both estimate receipts, with a
close approximation to the actual, and
to provide for their annual rise or fall
BY some flexible factors in our annual
taxation"
Reductions in the present estimates
Mr.. MacNeagn declares. result from
improved handling OF the government
work and the posiponenent of expen-
ditur-s which can be delayed in an
effort to adjust immediate
and receipts. He sounds a warning
however. that the reductions in appro-
priations will be disappointing unless
equal attention is given to other inn
portant savings.
Secretary MacVeagh reviews the
organization, or rather lack of organi-
cation of he fiscal responsibilities of
the executive ans legislative branch
es of the government and the reorgan-
iZation thereof now in progress. He
voices the hope that there will b.
constant progress away from the ex-
IRENE DISCRIMINATION of abe pastp
and observes hat even IL our coun-
try is rica il cannot afford 10 be wnol-
y unScientific in its appropriations"
Probably the most important recon-
mendation made by the secretary is
that the tax on bank circulation Sc
cured by United States bonds hereaf-
ter deposited bearing interest higher
than . per cent, shall be increased in
exact proportion to the increase in
The rates of interest above two per
cent. He advises continuance of ate
of one-half of one per cent for circu-
lation based on two per cent bonds.
Mr.. NacVeagh says that if the Pana-
ma bonds authorized by the law of
August 3. 1909, should be issued a.
3 per cent, they would hava a mach
better circulation privilege than the
outstanding two q cents, the tax
being only one per cent. Mr.. Ma
Neagh would make the tax on them
n n one-half per cent: otherwise
the already o. market value of the
2 per cents would unduly decline.
At the same time, Mr.. MacVeagh
says il is desirable to complete the
ma bends TO make them available so
as to begin the settlement of the in
d~ebtedness TO the general fund of the
Treasury of the Panasna Canal. He
suggests that if the sale of any of
these bonds should produce more
cash than the Treasury balance
needs, some of the two per cents
might he bought in the market for the
sinking fund. thus keeping the market
price of the latter class above par.
Declaring that the government has
not and never has had, a two per
cent borrowing power, Mr.. MacVeagh
say IL possibly would have been bet
ter never to have issued two per cent
bonds or bonds at any rate below the
governments borrowing power in the
open market. He says that as a bas-
IS for circulation they nave no elias
ITCHY; that they are practically all
held by the banks as a basis of circI-
%lation. and hat the banks would suf-
fer 81 heavy a loss in an attempt TO
dispose of them thai the influence OF
the situation is consequently decided
ly against the retirement of circula-
ton.