New-York tribune., 1911-01-02
UNCLE SANS FINANCES
Tariff Economy and Corporation
Tax Help Federal Income.
FOREIGN COMMERCE RECORD
Washington Looks for Issuance
of Panama Canal Bonds
in 1911.

sion Of the year 1910. Uncle Sam faces tho
advent Of another not only with gratitude
and equanimity. but with large measure
Of optimism. The gap between the re-
oeIuts and disbursements, as indicated in
the Treasury returns. has grown steadly
less in the last year. owing largely TO the
policy Of retrenchment inaugurated by 'he
present administration. the increase of rev.
enue through the corporation tax. the sue
cess of the new tariff law and general
Improvement in conditions Of trade ana IN
dustry.
I-p TO December, or practically the first
six months Of the present fiscal year, the
ordinary receipts from customs. Internal
revenue and miscellaneous sources were
xSoOo.cco, compared with s3l2.ooo,oco in the
.sros neriod Last year-an increase OF NA.-
10000 The excess OF ordinary e1pendi-
4ures over ordinary receipts in the same
.ner,od was only $4,000 compared with
Az onn0ro FOR last year At the present
TINA the growth Of the deficit has been
checked and the income OF the government
,.s so nearly sufficient for its ordinary needs
that there lis no prospect that the working
balance. now approximately s3o0o0,0o, VIII
b. so reduced as TO necessitate the issuance
of bonds Eliminating the disbursements
for the Panama Canal. which are not IN
eluded in these figures. there Is every rea'
son 70 expect that the government VIII pay
,.rpenses and that conditions will continue
l,o improve as the result Of further econo-
mics in the executive departments III
creased revenue and the oVerhaOlng oI
governmental methods.
The receipts from customs for the nscel
year will be- according TO the estimate OIL
Che Secretary Of the Treasury. &2o'c"VoV'
despite the reductions in the tariff law. II
IA probable that even these hgures VIII
bA s,,rnassed because of the large increase
IN imports and the improvements IN the
customs service. For less than half the
6scal wear the receipts from TINS source
have been sl54,OO0,00O, and If the present
rate Of increase in imports is malntalheu
The amount will be somewhat larger TOT 'he
Forthcoming six months
The ordinary receipts from internal reve-
nue. for the present fiscal year were esu-
mated at s2s3. 10000 by the Secretary OF the
Treasury. The returns for the first half OF
,be wear are approximately Sl5OOoOoN. H.
therefore. the present rate Is maintained
the total will be S300,o00,0cO. The revenue
from the corporation tax is estimated at
100000. The prospects for the next hscaI
wear are bright, as there has been a ma
rerial reduction IN estimates and there Is
prospect Of increased revenue,
The excess of all disbursements for the
first half Of the fiscal year is &0,6i6oco the
amount paid out for the Panama Canal IN
the same period was $T600C00 Eliminating
this iten which cannot properly be charged
10 the ordinary expense of running the gov
crnment, the totals on both sides OF the
public ledger are nearly the same.
From these figures it is apparent that the
business of the government is on a sound
basis and its finances are in better condi-
ton than they have been since the reac-
tiouary movement of few years ago The
expectations of the Secretary Of the Treas
,irv that there will be a balance on the
credit side OF approximately N6.00o000 at
the end OF the current fiscal year are likely
10 be more than fulfilled The efforts OF
President Taft 10 cut down the expense Of
government and the reforms and economies
which have been inaugurated under his
direction have met with unusual success
and the wisdom of the steps taken to in
crease the revenues has been amply proved.
As TO the future, there is no reason to
believe that there will be any falling off
either in domestic foreign commerce
which will cause "a shrinkage in revenue.
on the contrary, there is ground for ex-
pecting healthful increase. The value Of
farm products for the harvest of 1910 which
Is measured In billions Of dollars, assures
a wholesome market with large purchasing
power The disposition Of the rate cases
before the Interstate Commerce Commits
sion will have stabilizng effect and will
probably be followed by an increase in
business activity. which has TO a certain
extent held in allegiance pending such de-
cision. There is no general tariff change in
prospect and the country has adjusted
itself TO the new law, with promise of nor
NAL Industrial development. The appoint
ment OF a permanent Tariff Commission
Will probably have the effect Of eliminating
entirely this disturbing element.
As for foreign commerce, new records
have been established for the calendar
year 1910. For the eleven months ending
with November the total foreign commerce
was S3,o63. .00O, ,OOO-more than $l5,00OOOO above
the record established in 1897 With the
December business estimated, the grand to-
ral of the foreign trade for the year was
$500 co,OOO. The exports show a falling off
because Of the shrinkage in the outward
movement Of foodstufs which was 10 be
SApSSltu' buI lilS IiilpOlI u nave llCItdSei
enormously in the way of manufacturers
materials showing marked development
along industrial lines which more than on
sets the decrease IN the expectation Of
foOdstuffs.
The only financial measures which are
likely 10 come up for consideration in Con-
Gress during the present session are the
issuance Of Pahama Canal bonds and the
central bank plan. IL is very doubtful
whether this last question will be intro
duced. because of the lack of time for its
consideration, but II is quite probable that
Congress will act on the suggestion OF Mr..
MacVeagh TO authorize the issuance Of So
10000 or 800, 900 per cent Panama
Canal bonds without the circulation priv
ilege. 81 order TO determine the rate at
which the government can borrow on an
investment basis. II is feared that the
issuance OF these bonds with the circula-
tion privilege, which Congress has already
authorized 20 the extent of $500, ,0O0
woulC deprcss the per cents. Besides, the
issue as suggested by the Secretary Of the
Treasury would shed much light on the
borrowing capacity of the United States IN
the worlds markets. There is possibil-
ity perhaps probability. that the postal
savings banks will soon be put in opera
lion and will absorb all great part
of the issue Of Panama bonds, for what
ever Congress may do II Is the purpose
of The Secretary of the Treasury 10 issue
no more bonds than his necessities de-