The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1909-12-08
EXPENDITURES OF
THE GOVERNMENT
Secretary of the Treasury Mac
Veagh Submits His Report
GREAT REDUCTIONS MADE
Ordinary Receipts of Government
Revenues Amount to S64s,ooo, 900
and Big Deficit Has Been Gre
ated For Several Years.
GREAT REDUCTIONS MADE

washington, December 7.-Secretary OF
the Treasury Franklin McVeagh submit
ted the following report in part today:
The estimates of expenditures for the
executive departments for the fiscal year
1911. 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 I'M
usually early time and continued until
now. The aim has been to reduce them
to as low amounts as is practicable. in
conformity with the policy of the admin
istration to recognize practically the re-
cent and present disparity between rev.
enues and expenditures and to seek the
necessary adjustment through reduced
expenditures on the one hand and need
ed revenues on the other.
The total estimates for 1911, including
the naval building programme, are 1884,
1321e7. Excluding the increase in tho
Panama canal estimates, the total esti-
mates for 1911 show decrease of s67, 244,-
494 under the appropriations for 1910. In
GLIDING the increase In the Panama canal
estimates, the total estimates for 1911
show a decrease of s42,S1s,s69 under the
appropriation for 1910.
For the fiscal year 1910 the naval build
ing programme was not included In the
estimates submitted to the Congress. 1t
is, therefore, a matter of interest to note
that when the naval building programme
is eliminated from the estimates for the
fiscal years 1910 and 1911 the total esti-
mates for 1911 are $4,000. 49,. go less than
the total estimates for the fiscal year end
ing June 30. 1910.
The increasing appropriations from
year to year have become a recognized
incident Of the general growth of the
governments business, due to the growth
of the country and the increase in the
governments occupations and undertake
tngs. summary of estimates. there
fore, which shows no increase over pre-
vious years means that large retrench-
ment has been made This applies not
only to the total estimates of the depart
ment but to the estimates of its individual
branches. So that estimates showing a
reduction of totals is a double retrench-
ment-a retrenchment of the actual
amount reduced and a retrenchment of
the usual increase.
The estimates submitted have no inten-
tional exaggeration in them. If at any
previous time there was shown a ten
dency to exaggerate estimates without
an expectation of their full appropria-
ton, the case is now quite different
While the final authority in appropria-
tions rests with Congress, it is proper
to present the estimates for the coming
year as a careful measure of the actual
and frreducible needs of the government
The estimates OF receipts, with their
very long look ahead are always subject
to many vicissitudes, and perhaps never
more than now, whe nthe revenue results
of the new tariff law are still largely
undetermined, when the new conditions
affecting the internal revenue from dis
titled spirits and fermented liquors are
still a factor, and when the corpartion
tax is yet unexecuted. The estimates
must therefore be taken as the best I'M
der the circumstances.
For the fiscal year 1910 the ordinary
receipts estimated at $84S. 900, 000 and
the ordinary disbursements at s6s3075,-
$50 -, showing deficit in ordinary re-
ceipts of s34, 075, $40. H. When the pay
ments on account of the Panama canal
and the public debt are added. the total
deficit of the fiscal year 1910 is estimated
at s73,075, 62O.12.
The estimated ordinary receipts for 1911
are ss72, 900, and the estimated ordinary
appropriations $63s,oss. ol2 81. or a surplus
in ordinary receipts Of SIS. 931, 1927. 40. When
the Panama canal estimates for 1911 are
added the surplus is turned into deficit
of $12, 132, 197. 81
Since the treasury has not at present,
either in the banks or in its vaults,
materially more than a working balance
it will become necessary, in order to meet
these deficits. to sell either bonds or GER
tificates of Indebtedness In due course
1t would seem that it must be made prac-
ticable to both estimate receipts with
close approximation to the actual, and
10 provide for their annual rise or fall
by the introduction of some flexible fac
tors in our annual taxation. The hard
rightly of the present revenue system,
with Its recurrent economical agitations
and its long intervals of fixity with no
annual adjustment can not always satis-
fy the government or the nation.
Economies.
It is a favorable opportunity--partly
created by tho influence Of the deficit
TO consider the governments outgo not
alone in its totals. but in Its details, and
to institute proper economies The time
is clearly ripe for wise and judicious
savings In FEDERAL expenditures; and IL
this should be successfully accomplished
there is a prospect that the example
would influence the overhauling of state
and municipal expenditures to the great
advantage of the nation.
There are two classes of reductions in
the present estimates. One class If Of
those economies which result from an
improved handling Of the government
work and from cutting OF expenditures
which are discovered to be avoidable
without injury to the service or to the
people. These result fro ma close scrut-
my, and this scrutiny of course has, as
it were, just begun and must be a con-
tinuous process to become completely ef-
feotive. This class OF economies Is per-
manent and undeniably wholesome.
The other class consists of postpone
ments Of expenditures which can be de-
layed, in an effort to adjust immediate
expenses and receipts. Such reductions
are not wholly permanent; but even In
these cases the more thorough scrutiny
and consideration which they are receiv-
ing and the greater interest in proper
saving and economy which marks the
present period will tend to economies and
reductions.
It would be q great mistake, how
ever as all win agree, to let this epoch
of economy discredit itself and come
to an unttinely end by reason of losing