Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1914-07-10
UNDERWOOD ON
The new TARIFF
House Leader Calls Calamity
Howlers to Task. Nails
Lie About Deficit.
MONEY VAULTS ARE FAT
Shows New Tariff Law is
Success. Revenues Exceed
Estimates $4,000, 1000

WASHINGTON, July 7.-Fortified
by actual figures and by estimates fur
nished by treasury experts, Represent.
ative Oscar w. Underwood, leader of
the house majority, has replied to the
critics of the Underwood-Simmon
tariff law, who repeatedly of late had
declared that the new tariff was not
fulfilling the expectations or the prom
ises of those who had advocated it's
passage.
Mr. Underwood asserted that the
new law would bring in revenue of
$292,000,00O by the end of the fiscal
year. which occurred last week, and
that this would be $22,000,00O more
than the estimates made by the ways
and means committee while the legis-
lation was pending in congress. He
admitted that, with an expenditure of
S35,OC0,OOO on the Panama canal this
year, in addition to the ordinary dis
bursements, the treasury probably
would be about $5,0OO,OOO behind in
receipts. Such a small deficit, he
argued, was of no Importance, and he
pointed out that at the end of one
year of the Dingley law there was
q total deficit of $11S,0O0,OOO.
"As a mater of fact, Mr.. Speaker"
said Mr.. Underwood, instead of the
law bringing disappointment as a
revenue measure it has exceeded the
expectations of those who wrote the
law. When the tariff bill was written
the ways and means COMMITTEES esti-
mated that receipts from the customs
dues the first year would amount to
s270,OOO,000. That amount already has
been exceeded by the returns of the
last twelve months, and the treasury's 8
estimate of the moneys that will be
received from the customs for the fis-
cal year amount to 1922 100000 or an
excess in customs receipts Of $22,-
100000 above the estimate that we
stated to the house when the bill
became law.
Under the last year Of the Payne
law the receipts from customs dues
amounted to $31S,O0O, 900, so that it is
seen that the falling off in customs
dues between the present law and the
Payne law will amount to the differ
ence between $31S,O0O,00O and $292,-
oOO, 900, or about $26,OO0,OOO. We ex-
rected there would be falling off in
the receipts from customs dues to
some extent; if we had not we would
not have proposed the income tax.
1.-THE treasury reports that at the
end of the fiscal year the internal rev.
enue will amount to about $39, 00,O0O
which is a falling off Of $3,000,000 In
our estimates But it is equal to the
amount of the internal revenue taxes
that were received under the last year
of the Payne lave, exclusive of the
corporation tax, which in that year
amounted to $3O9, ,OOO,O 900, exactly the
amount of internal revenue receipts
will amount to this year, so far as
millions are concerned.
Idle Political Dreams.
ut seems to me that gentlemen who
have been criticising this bill from
the standpoint that it will cause
deficit in the treasury and would not
supply the government with sufficient
funds have been dreaming idle dreams
and making statements that were back
I'D by wishes that sprung from po
litical antagonism, and not from basis
facts. as shown by the reports from
the treasury.
"Now as to whether there will be
a deficit in the treasury. the tota
receipts will amount to $7SS.oO0,0o(
and the total ordinary disbursements
for this year will amount to 100000,
COO. leaving a balance in favor OF thu
treasury of $30,000.O00, with only
half year in which the income tax was
operated. But gentlemen will say tina
this does not include the expenditures
for the Panama canal, and 1t does not
The treasury advises me that 1t vii
spend on the canal this year $35,o0O'
900. With $30.O0o,0oo Of surplus owe
ordinary receipts and disbursement
and $4,000, 900 to be expended on th'
Panama canal, it leaves $5.00O.oOo Il
be raised.
~ want to say that $5,000,00O. ant
vastly more. Is in the treasury toda!
in the way Of surplus and the govern
ment of the United States does no
have to borrow from anybody to pa.
II. In the course OF the next year ez
penditures on the Panama canal will
practically pass away, and the mex