The Democratic banner. (Mt. Vernon, Ohio) 1898-192?, 1910-02-25
new TARIFF TO :.
REDUCE DEFICIT
President Talks Finances al
Newark Banquet
IADoRsES BUDGET SYSTEM

Thinks American Plan Of Having Elk.
penditures Planned by One Com.
mittee and Revenues by Another is
AntIquated and Productive Of Much
Harm-says Congress by Adding to
Expenditures Of Government Can
Wipe Out Hypothetical Surplus.
Newark, N. j., Feb. "a. - At the
banquet OF the board of trade, Presi-
dent Taft was the principal speaker,
addressing 800 assembled guests on
the subject of government expenses.
He said in part:
81 should like to direct your atten-
tion to the question of government
expenses and government revenues.
and the possible economies, and what
expenditures are essential at what
ever burden of taxation.
''In the first place, it should be said
that we have been so far from ex-
hausting the resources of national
taxation, and federal revenues have
been collected so easily and in such
an amount that we have failed in the
past to adopt budget system. which
Is practiced In every other civilized
country. BY budget system I mean
reference of proposed expenditures
and receipts to some one authority or
tribunal, which. after determining
what the revenues are TO be, must
also determine what the expenditures
can me, and make budget without
deficit"
Calls Attention to System.
The president called attention to
the incongruities of a system under
which the revenues are provided by
the ways and means committee of the
house and nance committee of the
senate, while the appropriations are
made by the appropriations commit
tees Of the house and senate. He
said the raN ND increase of the expend-
itures over the revenues had aroused
the attention of congress, and now
the secretary Of the treasury is obliged
to make up budget from estimates
submitted by the various government
tai departments, and to make an esti-
mate of the probable revenues. and If
his calculations show probable def
cit to recommend legislation for addi-
tional taxation or the raising Of
money, by bonds sufficient to meet It..
Continuing, Mr.. Taft said: "The
calculation Of the secretary of the
treasury for the present year showed
that the deficit was likely to be $34,.
100000 In respect to ordinary receipts
that the operation of the new tariff
bill has been so much more produc-
tive of income that this deficit for the
current year is likely to be consider
ably reduced. In addition, however,
to the ordinary deficit, we have to add
the Panama canal expenditure for i'm.
mediate provision of $4,000 900; or
what was estimated to be a total
deficit of s72,O00,O00 is now reduced
considerably by the better rates un,
der the present tariff bill.
Can Meet Deficit.
by meeting the expenditures on
the Panama canal with the proceeds
Of bond issues, we have enough cash
In the treasury to meet the deficit In
our ordinary expenses for the current
year, and II we meet the expenditures
on the Panama canal for the follow.
ing year, we shall have a surplus OF
s35 100000; or II the revenue pro.
ducing capacity of the new tariff
keeps up, this surplus may be In
creased to $50,oO0,00. On the other
hand, If the congress proposes to add
to the expenditures of the govern
ment over these estimated for new
enterprises In the river and harbor
bill, and for the construction of fed
eral buildings under a building act
1t will be very easy to consume or ex
ceed the entire surplus"