New-York tribune., 1910-06-27
EXODUS FROM CAPITAL BIG REVENUE PRODUCER
Secretary Macveagh Says Tariff
Law Has Justified Itself.
HOPE OF TREASURY SURPLUS
All Depends on Corporation Tax
Receipts-Reduction of
Expenditures.

Washington, June 26.-Four dsys ren1ss,
OF the governments fiscal year wficF, ers,
with the close Of business on June 90 Tru-
completed figures and estimates avaiIabla
at this time. or rather as OF the date ~
yesterdays Daily Treasury Statement.
which included Fridays business, lead SEQ
retary MacveagfI OF the Treasury Deuar--
ment to express himself as well satssss
with the operations of his department for
the fiscal year now closing
Mr. MacVeagh regards the new tariff Ian
as having justified itself as a revenue pro-
ducer: internal revenue receipts have *
ceeded the estimates by approximately
10000. and the year promises to en6
showing possibly surplus in the ordinary
receipts and expenditures or splitting near.
~ even. instead of showing a deficit of s5i.-
600, 900. as was predicted. a larger income
and reduced government expenditures are
given by Treasury officials as eontributiEe
causes for the good showing
During the year the government has ex-
pended on the Panama Canal s33,91064S
This has been drain on the regular work
ing cash balance. there being no special
fund from which payments for this pur-
pose can be made. Congress has author
lied the issue of bonds to meet canal cen
struction expenditures, and 3lr. MacVesgh
thinks the cost of construction should bs
shared by posterity. which Will, after all
get the benefit
Refused TO Graduate Tax
He has objected. however, TO the basis
on which the law provides the bonds shall
be issued If at per cent as now pro-
posed, the Secretary believes they would
have a much better national bank circu-
Iatior privilege than the outstanding per
cents, and their issue would therefore cor
stitute q discrimination against the 2s
Congress refused to graduate the tax on
national bank circulation secured by bonds
as recommended by the Secretary and tue
bonds remain unissued. The amount Of
Panama 3s authorized but not issued aS-
gregates 1920. .569. 00o.
In his annual report TO Congress in De-
cember Secretary MacFeagh estimated that
the ordinary receipts Of the government
for the fiscal year 1910 would be ss4s 600 asa;
to date they have aggregated So, 41,55555S.
He estimated the ordinary disbursements
at s682 0s5, SO; at this time they amount 70
$3.50, ,510S35 Customs receipts this year have
been S25562, 342, the TTessury's estimate
for the year being s335,o ,oo.eo9. Now the
prediction is they will reach more than
$500, ,0oO 90, thus falling below the estimates
Reduction Of Expenditures.
There has been material reduction from
the estimates in expenditures IN the civil,
war and naval establishments and de-
crease of s7.6o0,000 in the estimated postal
deficiency Whether or not there will be
an actual surplus at ths end Of the year,
officials say. depends On the amount Of
corporation tax money received. Secretary
MacVeagh estimated IL would reach aS-
ocOO00. The prospects are otherwise. The
money IS paid direct "a, internal rsverus
collectors, and frequently several days
elapse before IL reaches the Treasury here
Senator Cullom's resolution poStponinS
payment of the tax until January I. al
the opinion of the Treasury had the effect
of deferring payments of the assessments
by many corporations. on the theory that
II might be acted on,
Corporation taxes perid 20 date amount tc
3,23s. 153. If s15001.0oo from that source be
In the hands of the Treasury at Washing
ton by the end Of the fiscal year the pre-
diction is made that the daily Treasury
statement for next Friday viii show sub
comprising the ordir Ery receipts and dis
bursements.
The total deficit for the year to date, in-
cluding that on ac,7ount OF the Panama
Canal, the ordinary transactions of the
government and those Incidental to the
public debt is 81 441S949