The Grenada sentinel. [volume] (Grenada, Miss.) 1868-1955, 1910-08-19
GROWING TOO SOON
FRIENDS OF PAYNE TARIFF LAW
OvER-JUBILANT.
Measure ~eaIIy Has Not Had Any Def
Unite Test That Might Determine
lts VaIue-Wise Course to Sus-
pend Judgment.

Perhaps 1t will be recalled that the
recent Ohio Republican convention de-
clared, in effect, that the Payne law
had justified the expectations OF Its
friends-which we have no doubt. is
true Of its real friends, such as the
cotton manufacturers-and had con-
verified a national deficit into a surplus.
The convention was a remarkable
body, but In few things more remark
able than this. 1t was pointed out in
the News that but for the receipts
from the corporation law, which may
have to be returned to those from
whom they came, the treasury's work
ing balance would today be less than
81, 900, 900, the smallest In years.. The
excess Of expenditures over receipts
for July, the first month Of the present
fiscal year, exclusive of the Panama
canal account, was more than 81, 000,-
600. as against $15, 600. 900 for the
same month last year. Including the
Panama canal shortage. the unfavor-
able balance mounted to $18,610,000.
1t is true that the fiscal year ending
with June showed a surplus of ordi-
nary Expenditures of about $4,000, 900.
Counting in the Panama canal tx
penditures, there was a deficit. But
there was an extraordinary increase
Of revenue the last month of the year.
1t Is only fair to add that July. which
shows a deficit, is always a bad month.
the drain on the treasury In that
month being unusually heavy. But
still 1t appears that the surplus for
the year was very small; that there
was deficit in the canal disburse-
ments be counted in; and that July
showed a deficit. It seems fair to con-
clude that 1t Is far too early to Judge
of the merits Of the Payne law as a
revenue producer. The Washington
officials evidently do rot wholly share
the optimistic views of the cheerful
standpatters who engineered the Ohio
convention. On the contrary, the
ried over fiscal conditions, particularly
when they consider them from the po-
litical point Of view. 1t is even said
that were 1t not for the money derived
from the tax on corporations the ad.
ministration would today be facing a
bond issue or a resort to the issuing
of certificates Of indebtedness. Yet
we were assured by Senator Aldrich
that no form of extraordinary taxation
such as income and corporation taxes,
would be necessary to protect the
treasury, but that the customs re-
ceipts alone as provided by the Payne
bill would be more than sufficient to
meet the necessities Of the govern
ment.
We suggest, therefore, that 1t will
be much wiser-and safer-to suspend
Judgment. Imports, AS we know, have
been very large. Strange as 1t may
seem, the standpatters themselves
have boosted Of this, and have really
delighted In the supposed reduction OF
duties. But imports have been large
because prices were very high, these
high prices operating, as they always
do, to attract goods. When prices fall
we may find that imports will decline,
and If they do revenue will decrease.
The tariff law has not yet had a fair
test as a revenue measure. 1t has
been well tested in other particulars.
and found wanting. But If imports d.
minish, and II the corporation tax law
Is declared unconstitutional, the treas
ury may find itself in diflculties.-In-
dianapolis News.