New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-11-27
Utah Senator Joins Kitchin
in Joyfully Kidding
Financial Plan.
TREASURY BEHIND
OVER $114,OOO,0O0
$500, 100000 Now Called Much
Too Low an Estimate Of the
Governments Needs.
From The Tribuns Bureau. ]

From Tho Trbuns Bureau
Washington, Nov. 26.-No actual
money for preparedness until after
next falls Presidential election, and
then the issuance Of bonds, is the plan
Of the administration inferred by Sen.
ator Reed Smoot, Of Utah, after a care
full perusal Of the Secretary Of the
Tressury's published draft Of the fnan-
cial programme.
Republicans all over Washington
were joyfully engaged to-day in picking
out the "holes" in Mr.. McAdoo's pres
entation of the administration scheme
The number Of holes" disclosed in The
Tribune vas augmented by experienced
legislators. who have been studying ap-
preparation bills for years, and the to-
tai Of s3O0,O0o,o0O out Of the way was
pronounced mild indeed.
Tho anti-preparedness Democrats
also found a melancholy Joy In the
statement. Representative Claude
Kitchin declared that I'VE have strained
the nerves of the government to get
sufficient revenue to meet It's ordinary
expenses, and our revenues are still
insufficient"
Having read with care Secretary
McAdoo's statement" said Senator
Smoot, ~ am at loss to determine
whether II presages another change in
the form Of the daily Treasury state
ment, which has already undergone so
many metamorphoses. Certainly Mr..
McAdoo's statement, issued this morn
Ing. does not correspond with the daily
statement Of the United States Treas
ury issued on the date with which he
begins his tabulations.
Smaller Treasury Balance Shown.
"That is to say, the Secretary de-
clares that on July 1A1e15, there was
credit balance in the general fund
of s104,170,106.7 and yet the official
daily statement of the United States
Treasury, bearing date OF July / and
2, 1915, shows the net balance In the
general fund to be s7s,157 s81.Ss, and
this latter item Is printed in the daily
statement in bold type and shows a
shrinkage from the previous days
statement of nearly 100000. This
difference alone amounts to s2S,012,-
274.45. Again, on September 30, 1915
the daily Treasury statement shows the
net balance In the general fund was
S40,SeS,S94.97. The next days state
ment, without the addition Of the pro-
ceeds of bond sale and with an actual
decrease in the revenues of the gov
eminent over expenditures, shows the
balance as Sl28,063, 54524.
"This apparent increase Of ss7,164,-
650.28 in the Treasury balance was In
bookkeeping alone and was procured by
the transfer from the liabilities to the
assets side of the ledger of the disburs-
| ing officers balances and the govern
ment banknotes redemption fund, both
/ OF which have always been recognized
az liabilities Of the government, and by
/ the inclusion of subsidiary silver coin,
minor coins and silver bullion, none OF
which had ever been reckoned as avail
able for the payment of the govern
ment expenses.
THE only way that can account for
this change In bookkeeping is the i'm
perative necessity to make 1t appear
that the Federal Treasury Is not prac-
tically ban krupt. At the close Of bust
ness March 3, 1918, the Republican
party turned over to its Democratic
successors a Treasury containing a net
general balance of s149, 335,711.78. On
September 80, 1915, the eve of the first
appearance of Secretary McAdoo's new
and msconceived form OF daily state
ment, that balance had been diminished
| by S108,436,Sl6.S1, which represented
the cost to the American people of
Democratic administration to that date.
Total Deficit, $114,OOO,O0O.
Nor is this all. The mythical bal
ance of .S12S,063,54523, which he SO
proudly boosted on the first of last
October, had decreased by the end of
that month nearly S6,000,000. So that
the total deficit under this Democratic
administration in the Treasury I'D TO
the first Of November of this wear
amounts to more than $4,000. 900.
And this splendid result has been
achieved without the expenditure OF
a single additional dollar for the ma.
tlonal defence, and in spite of the fact
that the Treasury had in the meantime
received the benefit of the burdensome
war taxes and the cumbersome and in.
efficient income tax. Basing my judg-
ment upon facts already demonstrated
am OF the opinion that the estimates
OF revenue contained in Mr.. McAdoo's
latest statement are excessive, and
that his estimate of disbursements is
too small.
This certainly is the case with the
revenue. OF sl5,000,00O expected from
sugar for the months Of May and
June, 1915, and the disbursements for
supplemental estimates and defcien.
ces for the fiscal year 1916 will be
nearer s20.000.000 than $4,000. 0O0
Again. the estimate of Mr.. McAdoo fol-
disbursements for additional expendi.
lures for greater national defence
or preparedness, OF 500 800 900 Is SAP.
473143.59 less than the estimate.
given out by the War and Navy De.
partments and approved by the Presi
dent, for they amounted TO $i3e,273,.
143.
rs the programme for national de.
fence to be slaughtered in order &c
show favorable Treasury balance
Nothing is provided in the statement
of disbursements for the building Of
the railroad in Alaska, nor is one cent
provided for the administration shiT
purchase scheme, and with these few
items. and many m6re that could b.
mentioned, the total new revenue e
be raised for the fiscal year of 1917
instead Of being SIP ,S06,3 94.22, as the
statement shows, will be nearer $500,
100000.
"The suggestions which Mr.. McAdoC