Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1909-12-10
RETRENCHMENT THE
TREASURY KEYNOTE
1911 Estimates of Secretary
MacVeagh Show Decrease
$57,244,493 Under 1000.


WASHINGTON, Dec. s.-Retrenchment
lis the keynote in the estimates of eXpen-
ditures for the executive departments OF
the government for the fiscal year 1911,
embodied in the annual report of Frank
lin MacVeagh as secretary of the treas
ury. made public today. This is in line
with President Taft's declared policy OF
greater economy in administering the af-
fairs of the government.
, The total estimates for 1911 are S6S4,-
132. 1877 including the naval building pro-
gram Excluding the increase in the Pan
anna canal estimates. the total estimates
for 1911 show decrease of S51,244, 1889
under the appropriations for 1910. 1nclud-
ing the increase in the Panama canal es-
Inmates, the total estimates for 1911 show
Ia decrease of $42. SIS. 969.19 under the ap-
preparations for 1910. The ordinary esti-
MATED receipts for the current year are
S64S 900, 600. and the ordinary disburse-
ments at $685., 075. $40 leaving a deficit In
ordinary receipts of $34, 075. $40 When the
payments on account of the Panama ca
nal and the public debt art added, the to-
tai deficit of the fiscal year 1910 Is esti-
mated at $73,075, 620.12. The estimated or
binary receipts for 1911 are $672. 900.
and the estimated ordinary appropriations
ceipts of $35, 931 ,327.49 When the Panama
canal estimates for 1911 are added the sur
plus is turned into a deficit of $121S2 :
1921.
NAVY NOT INCLUDED.
For the fiscal year 1910 the naval build
ing program was not included in the es-
Inmates submitted to the congress. When
the naval program is eliminated from the
estimates for 1910 and 1911, the total es-
Inmates for 1911 are $94. OO1, 1922 less than
the total estimates for 1910.
Secretary MacVeagh emphasizing the
hard rigidity of the present revenue sys-
tenn with it's recurrent economical aglta
tions and it's long intervals of fixity,
says it will be necessary to meet these
deficits to sell either bonds or certir-
Gates of Indebtedness. In due course,
he adds, at would seem that 1t must be
made practicable to both estimate re-
CENTS. with a close approximation to the
actual. and to provide for their annual
rise or fall by some flexible FACTORS IN
our annual taxation 49,.
reductions in the present estimates, Mr..
MacVeagh declares. result from improved
handling of the government work and
the postponement of expenditures which
can be delayed in an effort to adjust I'M
mediate expenses and receipts He
sounds warning, however, that the re-
auctions in appropriations will be .disap-
pointing unless equal attention is given
to other important savings. $500.
REVIEWS ORGANIZATION. "
Secretary MacVeagh reviews the organ
ization or rather lack of organization. OF
the fiscal responsibilities of the executive
and legislative branches of the govern
ment and the reorganization thereof now
i'm progress. He voices the hope that
there will be constant progress away
from the extreme disorganization of the
past and observes that even II our
country is rich it cannot afford to be
wholly unscientifc in it's appropriations"
Probably the most important recon-
mendation made by the secretary is that
the tax on bank circulation secured by
United States bonds hereafter deposited
bearing interest higher than per cent,
shall be increased in exact proportion to
the increase in the rate of interest above
j per cent. He advises continuance oil
the rate of IL of ] per cent for circula-
! ton based on 2 per cent bonds. Mr.. Mac
! Veagh says that if the Panama bonds
J authorized by the law of August 5, 1903
j should be issued at per cent. they would
, have a much better circulation privilege
| than the outstanding per cents, the tax
! would make the tax on them 1 1-2 pei
! cent; otherwise the. already low market
/ value of the 2 per cents would unduly de-
! cline.
4 At the same time. Mr.. MacVeagh says
1t is desirable to complete the Legislation
! respecting the new Panama bonds to
make them available so as to begin the
| settlement of the Indebtedness to the gen.
eral fund of the treasury Of the Panama
| canal. He suggests that IL the sale OF
any of those bonds should produce more
/ cash than the treasury balance needs
some OF, the . per cents might be bought
IN the market for the sinking fund, thus
keeping the market price of the latter
class above par. Declaring that the gov
eminent has not, and never has had, q
= per cent borrowing power, Mr.. Mac
Veagh says it possibly would have been
better never to have issued per cent
bonds or bonds at any rate below the
governments borrowing power in the
/ open market He says that as a basis for
circulation they have no elasticity; that
they are practically all held for aged en-
ployes. stating that the United States is
the only nation that has no general Legal
/ retiring pension for the employees of its
civil service.
| Mr.. MacVeagh's only reference to the
new corporation tax is a paragraph de-
signed to clear up the question as tc
what form of return would be adopted
/ He says it must be assumed by the de-
partrnent that the single purpose of the
law was to tax at per cent the actua
net profits of corporation, as net prof
its are understood, and that the term met
/ income" was used that there might be
| no confusion.