Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1909-01-10
NATION HEADED TOWARD
THE BORROWING POINT
Republican Legislators Real
ize the Gravity Of Secretary
CorteIyou's Warning That
Time Has Come to Do
Something,
Morning Journal Bureau.
Munsey Building.


peace, is heading Inevitably toward
bond issue to pay government ex-
penses is conceded by everybody con
v~ersant with the fiscal situation. The
situation is desperate from some
points of view. The republican lead
ers fully realize their responsibility
For twelve years they have been in
fun control, ove seven years of the
time has been under the Roosevelt adj
ministration
In his annual report, Secretary Cor
telyou gave warning hat the govern
ment is spending more than its in
come, and VIII probably continue to
do SO for some years to come. The
government can not easily apply ordi-
nary business methods to such a sit-
| uation. reduce expenses and seek
more income. The government, un-
dcrtakipg to raise more income from
the customs and internal revenues,
faces danger of political revolution.
These sources Of revenue have been
! squeezed TO the limit of safe political
~financiering Either expenses mus
| be less or bonds must be issued.
The standard Oil systems great
National City bank has been urging a
| bond issue. It is expected other bank
ing interests Will echo this, for bank
crs like bonds. They are good in
vestments. and they constitute the
basis of national circulation, which
means hat the more bonds are IN the
market the more elasticity there is to
the currency. Elasticity is especially
desired in such times as the present.
It viii be more desired when BUSH
ness begins to boom and to demand
increased circulation.
The first cause contributing to the
present situation was the great influx
Of in the prosperous years,
making a huge surplus. The govern
ment found ways to spend most OF
the receipts. The Roosevelt admin
istration has been fertile of eXpedients
for spending, and the nation has APP
proved. Increase of army and aNN
public buildings. conservation, water
waVs improvements, and a score OF
other big items have been costly.
There is the charge OF extrava-
gance. and against it is set the an
sNyer that his has been an era of true
nation building. The president has
believed his plans wise. and has frank
" said posterity should pay part OF
he costs, because it viii get the main
benefits.
The figures of revenue and expense
are startling whe analysed. since
1897 population has increased ~ per
cent. and net ordinary disbursements
Of government so per cent Net orcfh-
arv receipts rave grown 10 per cent
,r from $S47, 100000 to $60l'Ooo' oVV.
The largest increases in eXpendi-
cures have been for the army ana
navy. The war department IN l8VS
spent almost exactly the entire Gus
IONS receipts for 1897. b army
ost almost size, 100000 last year.
which is more than the total cost OF
salaries. agriculture. forest eonserNa-
ion. waterways, rivers and harbofs'
4ublic buildings. and all other gov
rnment expenses except navy IN
iians and pensions.
Indians ana pension appropriations
nave increased little IN the Twelve
| years. Indians cost about ~SlS,OOo'Vvo
IN 1897. and $1,000. 900 more IN l9ue.
| pensions were S141.00O 900 in 1897,
and only $13. 600, goo more in l9oS.
rho navy almost quadrupled its cost
in the twelve years. In 1905 II cost
s1tS ooo. 600. which wac the naval bill
for the Spanish a II was equal TO
the naval expenses OF the first three
! wears of the civil war.
About 50 cents out of every dollar
| Hsbursed by the government IN lseS
went for the army and navy II
| ,nostion now is @ whether these eN~
.4nditures are wise. The point il
| NAT they cannot be continued unless
rsynpues are raised. Secretary Cor
| -elNou estimates a deficit of $llf,ooo.-
too I'M 1909. and Sff3. coo. GOO i'm 1910.
estimated revenues for 1903 are
S7sa COOS coo. and the secretary all
.sadv has estimated 1908, 100000 for
expenses.
The appropriations committee use'
a. have this power. but IL made the
ommitf = SO powerful that the au-
ltborit, adj 60 be withdrawn That
was dome whom sam Randall was
speaker Now. the only big a~ppropria-
don bin made up by the u~pptopfie-
tions committee h. the legislative, eN'
~ecntive and judicial bill The min
ltarv committee. the naval committee.
me AGRICULTURAL committee. lndian
committee. public buildings c"nlhih
tee. rivers and harbors committee. aho
so on. make up their huge bills hde-
psndontis. Mother pays ttcniio
To the others. There is cooperation
! rather each thinks it has done best
service when it has got the largest
slice The climax OF such a condition
is that statement that In 1905, con-
eross appropriated Si,0oS.ooo.oeo
while standing face 20 face with an
estimate OF S7Ss. 10000 receipts.
The ways and means committee Is
nov in the struggle to max both ends
meet and yet satisfy a demand for
real tariff revision II will be ruinous
politics 10 issue bonds. and IT will be
lust as ruinous To fail TO convince ths
@lcountrv that revision has been hon
est
Taxes on Office and possibly tea
increased revenue tax on beer. and
possibiy restoration of some Of the
stamp taxes. constitute n series al
lsuggested remedies Duties ln tees and
coffee would amount 10 adopting ths
ossence OF the English system. which