The Denison review. [volume] (Denison, Iowa) 1867-current, 1914-06-10

HEAVY DEFICIT
May Be Forced to Necessity Of Issu'
ing Bonds to Obtain Money TO
Run the Government.
CUSTOMS RECEIPTS FALLING OFF
Expenses, However, Are Increasing
by Leaps and Bounds-Surp'us
Cut more than $4,000

w JuliC W Ath'h '''N
next nine months the democratic ad-
ministration may be forced to the
necessity of issuing bonds to obtain
money to keep the wheels of govern
ment in motion. Treasury receipts,
particularly those that are derived
from customs, are falling off at an
alarming rate. On the other hand, cX-
penses are increasing by leaps and
bounds. Further, the surplus that the
democrats found in the treasury When
they came into control on March A.,
1913. has been cut by more than $40.
zoe 900.
Administration leaders are hopeful
that the returns from the income tax
law will help them out OF their flnan-
cial difficulties, but they entertain
fears on this score that they are not
making public. When the income tax
law was passed it was estimated that
it would yield anywhere from $780,
100000 to $l00,O00,O00 n year. The
first collections under this law must
all be in by June 30th. They cover a
period of ten months only. Estimates
of this yield are placed anywhere from
$40 900, 900 to $70,0O0,000. If it should
happen to fall as low as $l0,OOO,00 or
less the democrats might be forced
at once to consider means of raising
more revenue.
Two Courses Open
In raising additional revenues, the
administration has two courses open
to it, 1t may increase receipts by re-
,ising the tariff upward in some par,
ticulars or it may authorize the issue
OF bonds. There will be no tinkering
with the tariff at this session. The
democrats will go to the country this
year on the tariff law as it stands. Ev-
cry effort will be made to avoid issu-
ing bonds before the November cleo
tons. Being in power. the democrats
are now on the defensive and they
have enough to explain in the past
years record without adding bond
issue to it.
When the democrats took hold On
March a, 1913. there was a free bal
ance.in the treasury of approximately
$ll2,0O0,600 That is to say, there was
that amount available against which
there were no charges OF any kind.
The free balance has now dropped to
a little more than $71 100000.
On the years business up to May
2S, inclusive, the treasury reports a
deficit OF more than $l1,0OO,OOO
For the eleven month period re-
more than $6U7 100000, as compared
with $63l 100000 last year, a decline
of $2i,000,00O. Disbursements footed
up to a total of $67?,000.000. an ex
cess over receipts OF S72 100000. TAX
ing into consideration the decline in
receipts. the increase in expenses and
the steady inroad3 that have been
made in the last year into the free
balance, the condition of the treasury
warrants concern on the part of the
administration.
Budget Biggest Ever.
But this is not the whole story. Ap-
preparations are pilng up in this con
gress. The total budget for the year
will be record breaker. 1t will sur
pass anything in the way of an appro-
priation record ever made by the re-
publicans, who are noted as prodisal
spendcrs. Last year the democratic
congress. appropriated $1,O99,G7S.7SS.
1t is predicted that the appropriation
of the current session. unless present
tendencies are checked, may total
$l,g00,Q00 900. Herein lies the cause
for nearly all the present worries.
With the returns from the income
tax law the democrats might be able
to show Il surplus III the treasury in
y few months. But on July LIST the
n,nt will avail
able and the drain on the treasury
will be renewed where it left off on
Juno Both.
Within the last week there have
been reports that the democrats were
Of retaining a duty of | cent
4 pound on sugar as a means OF
up the revenues. On Jan.
1. 1916. after sliding scale Of reduc-
ton in rates. sugar, by authority OF
the Undcrwood-Simm tariff act,
will go on the free list Under repub
lean tariffs sugar was the biggest
single item of revenue. 1t yielded
nearly $Go,OOO,OOO year. The re-
duced rate on this product now in
force has diminished receipts from
this source and in a year or two sugar
will not yield the treasury penny.
Must Not Touch Tariff Now.
I'VE cannot touch the tariff before
the November elections" said dem
ocratic leader. We've got to stand
or fall by the law this year. After the
elections we may have to revise the
tariff. but If We have to get more
funds before that time we will have |
to resort to small bond issue"
The treasury statement of condi |
tons does not indicate that business |
is bad throughout the country. Con-
as indicated by receipts at
the internal revenue ureau, is in
creasing. In the eleven months of
1913 receipts from this source aggre-
gated $27S.3S6,4 Si.S7. They increased
to $27S,S2l,7 1912 in the correspond
ing period this year. While internal
revenue receipts We're increasing Gus
toms dropped from $27S,OO0,OO0 to
1857 100000. Democrats have lot
of excuses to offer for treasury con.