South Bend news-times. (South Bend, Ind.) 1913-1938, 1915-11-27
iMOOT CONTENDS
REPORT IS FALSE
Utah Senator SAYS Books
Have Been Juggled by Sec
rotary of Treasury.


icgl effect. as IL appears on its face,
Sen. Reed SmoOt. Norman senator
from Utah. and leading financial
authority" on the republican side
OF the senate. Friday night took di-
rect issue with Sec'y Of the Treas
ury McAdOO. even 10 the point Of
charging book -juggiery as excusing
the secretary's figures.
Smoot vehemently declares that
the administration viii face a dehcit
IN 1917 that will be nearer $780,
600, 900 than the S112.sO6,39 es-
timated by Sec'y McAdoo In
lengthy statement discussing the
treasury situation, Sen. Smoot sub
mits the following as points:
Change i'm Books?
That the treasury balance has
been arbitrarily increased "by
change Of bookkeeping" because OF
the imperative necessity to make
Il appear that the treasury is not
practically bankrupt"
That this change Of bookkeeping
involved the shifting Of balances
from the liabilities to the assets
side Of the governments accounts.
That the democratic administra-
ton up TO Nov. I. 1915, had re-
suited in a treasury deficit of S114.-
600. 900.
That the measures proposed by
Sec'y McAdoo for increasing re-
venues will fall far short Of the
needs Of the treasury and that the
administration finally must turn to
q bond issue or tariff revision to
refill the depleted Golfers.
As opposed to Sen. Shoots state
ment, Sen. Simmons Of North Caro-
lima, chairman of the senate finance
committee, in a statement Friday
endorsed the secretary's plans for
raising money, although he said he
was not in a position TO estimate
the amount that would be needed.
In addition TO continuing the pres
ent war revenue law and the one
cent a pound duty on sugar. Sen.
Simmons particularly advocated
taxing automobiles and gasoline. He
endorsed increased appropriations
for national defense and plans for
securing an American merchant
marine. Sen. Simmons also favOrs
Sec'y McAdoo's plan for increasing
the income tax returns.
Statement Attacked.
The statement issued Thursday by
Sec'y McAdoO was attacked in de-
tail by Sen Smoot. The republican
leader said that estimating that the
treasury had on hand S104,l7O,-
1857 at the beginning of the pres
ont fiscal year, the secretary count
ed on SIS. 900, 900 too much. The
senator also pointed out that
treasury balance OF S4O,S9S,S94.97
Indicated in the daily statement for
Sept 30. 1915. was arbitrarily in
creased by more than SS7,OOO,OOO in
the next days statement.
This apparent increase" he said,
''was in bookkeeping alone. and was
procured by the transfer from the
liabilities 10 the asset side of the
ledger of the disbursing officers
balances and the government notes
redemption fund. both of which
have always been recognized as ia
bnities of the government and by
the inclusion OF subsidiary silver
coin. minor coins and silver bullion,
none OF which had ever been con-
sidered as available for the payment
of government expenses.
Sen. Smoot said that the repub-
lican administration turned over to
the democrats in 1913. a treasury
containing a net balance of S149,-
S35.71I.7S and that by Sept. SO,
1915. the balance had been dimin-
ems Aoe SIS 81
Loss of S6.OOO,OOO.
In addition to this. he said. the
treasury statements show a loss
Hnce Sept. 80 of S6,OO0.00O.
Sen Shoots statement said:
And this splendid result has
been achieved without the eXpendt-
ture OF a single additional dollar
for the national defense ana in spite
of the fact that the treasury had
in the meantime received the benefit
OF the burdensOme war taxes and
the cumbersome and inefficient in
corue tax. Basing my Judgment up
on facts already demonstrated l am
Of the opinion that the estimates of
revenue contained in Mr. McAdOo's
latest statement are excessive and
AnAN MS estimate G4 uASEuIStAAtAAb9 -
TOO small.
Contradicts MCAdOO.
This is certainly the case with
the revenue of $4,000. 600 on sugar
expected for the months OF May and
June. 1916, and the disbursements
for supplemental estimates and de-
ficiencies for the fiscal year 1916
win De nearer $40. 200. 600 than s12.-
goo. geo. Again the estimates Of Mr..
McAdOo for disbursements for add
ditional expenditures for "A greater
national defense. or preparedness.
OF S93. 500. goo is s42.734.4S5-5s less
than the estimates given out by the
war and navy departments and APP
proved by the president. for they
amounted TO S136,273,143. Is the
program for national defense 10 be
slaughtered in order TO show IA
Norable treasury balance
Nothing is provided in the state
ment of disbursements for the build
ing OF the railroad i'm Alaska nor rs
one cent provided for the admins