The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1909-06-11
TAFT TO CUT EXPENDITURES.


public the estimates of the executive
departments for the fiscal year which
begins with July |, 1910. The appro-
priations for tine year which opens
with July /. 1909, were made in the
session. of congress which ended on
March T. three months ago Those
for the year which will begin a little
less. than thirteen months hence will
be made in the session which opens in
December. 1909. All along the line
the coming estimates are expected to
be below the appropriations for the
year Immediately ahead of them. The
cut is expected to amount to 100000,
600 for the War Department, $4,000,
600 for the Navy department, and
100000 for the department of the
interior This would make a reduc-
ton of S39,000,000 as compared with
the appropriations which congress re-
Gently made. 1t is expected that the
cuts in the other departments will
bring the reduction to about $50,
000.000
Manifestly a reduction of this
amount in the annual outlay would
have an important effect on the bal
ance sheet. 1t would 90 far toward
wiping out the deficit if the business
Improvement reaches any such pro-
portions as are expected. For the
eleven months ended on May 81 of
the current fiscal year the treasury's
Outgo exceeded its income to the ex-
tent of $97 ,S51 ,000 About So, 450, 600
of this deficit came in May. Usually,
however, June is a good month for the
treasury. Four times out of every five
June gives the government surplus
1t is altogether probable that this will
be the case now although the range
of expenditures is still somewhat
above that of a year ago. If, as now
seems probable, the deficit should
stand at about $95,O0O,0OO for the
twelve months, Mr. Taft's retrench-
ment program would mean cut
of more than half a years shortage,
if this program should get the in
dorsement of congress. Generally
congress. in providing for OUTLAWS, is
guided by the estimates made by the
heads of the executive departments
When the appropriations get so high
that the country protests, congress
usually lays the blame on the exec
utive end of the government. This
avenue of retreat for the lawmakers
will be cut off in the coming session,
from present appearances. The fact
that Mr.. Taft, despite his talk in favor
of keeping the army and the navy up
to high figures, consents to a reduc-
ton in the estimates of the money
necessary for these arms of the serv-
ice for the fiscal year which is soon to
be provided for, means that he is in
earnest in his desire to diminish or
abolish the deficit.
But what effect will this retrench-
ment program have on the Sen
ate, in its shaping of the tariff bill :?
Mr.. Aldrich figures that the BILL as
modified by the finance committee
would add s3G.OOO,OOO or $4,000. 900
to the revenue in excess of that yield
ed now by the Dingley law. This is
only a guess, however. but in a guess
on this subject the Rhode Island SEN
ator could probably come as near the
mark as anybody else. If that should
turn out to be true. and if the confer
ence committee leaves the bill with
out any essential changes from the
shape it will have when it passes the
senate. it would seem that the deficit
for the year which begins with July,
1910, ought to be cut to very low
figure, or swept away altogether.
These guesses involve so many uncer-
tainties that there is good deal of
risk in making them. But the fact
that the estimates of expenditure will
be cut is cheerful circumstance The
country will applaud Mr.. Taft and his
subordinates for their sanity and
courage in resolving to do their share
toward wiping out the shortage. A
large part, of course, of the deficit is
due to the setback in trade which re-
duced importations. cut down the vol
ume of our activities. and thus dimin-
ished the income from customs and
internal taxes. For the year ending
June 30, 1907, which was just before
the financial scare. there was a treas
ury surplus of $S7,00O.OOO. The col
lapse came in October 1907, and what
might have otherwise been small
surplus was changed to deficit of
S6O,000,000 for the twelve months
ending with June. 1908. With occa-
sional Interruptions, the shortage has
been greater every month since the
beginning of last July than it was a
year earlier. This is why the secre-
tary of the treasury, last December,
estimated that the deficit for the
twelve months which are soon to end
would be $ll4,OOO,OOO. Before he left
office in March, however. he increased
this figure to $l2O,OOO.OOO But March
saw an improvement in the treasury's
condition, and this has been kept up.
And here is where Mr.. Taft's economy
program promises to aid the good
work of wiping out the treasury
shortage.