Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-07-27
General Fund of U. S. Shrink.
ing at a Rate Of Nearly
$750,000 Daily.
ADDITIONAL REDUCTIONS
IN RECEIPTS ARE FACED
Providing of Adequate Revenues Elk.
pected to Be One of First Subjects
Brought to Attention of Congress.

| a million dollars daily the expenditures
of the government have exceeded receipts
| since the beginning of the new fiscal year
| The working balance Of the general fund
Of the Treasury has shrunk SIS, 466, 95,
| from So, OPS, 1868 June 80 to $685.
| 315. 0S, at close Of business yesterday.
Sugar goes on the free list May l, 1915
with an unofficially estimated loss OF $780,
100000 to the customs revenues for the
| two months. owing, in great measure, to
the reasonable certainty that the usual
! big importations of March and April
| would be held back until May to escape
| the tax. The war emergency tax ends by
loss of s15.0O0,o0o revenues this year
under last years receipts from this source
Ordinary expenditures, so far this
year. have exceeded the expenditures
| for the same period last year by nearly
s6,00o,000. Receipts for twenty four
days Of July this year have been less
by nearly $4,000. 900 than the receipts
for the same period of last year; this
| is explained by a payment of more than
s12. 500. 900 last year in this period for
the battleships Idaho and Mississippi,
sold by the government, and a loss of
$7,000,000 in customs receipts this year,
a loss of nearly a million In income
tax so far this year, only partly Offset
| by gain of not quite 100000 in or
dinary internal revenues, representa-
tive probably of large collections for
| special licenses under the war emer-
gency tax, payable before August l.
Matter Demands Consideration.
The prospect is not good for SUFFICIENT
revenues to meet expenditures of the
government. With prospective re-
duction of s65. 900, 900 in the public rev.
enues under the laws as they stand
on the statute books; no certainty Of
improvement in the general business
situation that might assure increase of
revenues from sources now dried by
the war emergency; and expenditures
keeping up at a rate that was last
year in excess of receipts by $34, 900, 600,
it seems that consideration must soon
be given to the matter of providing
revenues to meet the possibility of the
wiping out of the working balance of
the general fund.
The working balance at close of buSi-
ness yesterday was $67,377 1862. 1t
is not to be anticipated that the bal
ance will continue to shrink at the
| rate of nearly $750,000 daily for an in
denite period; for the excess of expend-
itures at this time of the year is in
great part due to the availability of
new appropriations and the drawing
against them with the coming of
new fiscal year. Even at a rate of
loss of 100000 a day, the working ball
| ance would last four months: and there
are other funds in the general fund,
in vogue. that could be used without
| irregulafty If needed to pay federal
bills
Not until after December /, under
|
would there be a real necessity to
bolster up the revenues. But as the
! way things are going point entirely
| to the goal Of a depleted public purse,
there can be no doubt that federal OFF,
cials watching over finances and the
Treasury already are giving the matter
consideration.
At a rough guess. an extra 100000.
square receipts with disbursements.
represented by the prospective loss of
| revenues from sugar and the war
emergency tax, and big disbursement
nues even on last years basis. 1t will
be for Congress to decide how to raise
such sum of money, or any part of 1t
that may content it as a revenue rails
| the poorhouse But administrative Of
ficials, long before Congress meets, will
be preparing estimates of the shrink
age in revenues and of the amount
administrative heads will be consider
ing ways and means, with purpose to
be prepared to suggest and advise Con-
gress.
Canal Bonds Issue Suggested.
OF possible ways and means, an issue
of Panama canal bonds might partly
meet the situation: there has been no
issue Of these bonds under the present
Ac ha Dow onv ,a1
bonds carry no circulation privilege"
to allow them to be given by national
banks as security against circulation.
1t is doubtful, at the rate of 3 per cent
Interest, they will especially attract
the investor Besides. they are long
time bonds, not regarded as desirable.
The administration, it is assumed
| from what has been said on the sub
| ject, would not be apt to offer more
Panama canal bonds for sale than
would provide for the expenditures for
| the Panama canal made last year and
estimated for this year. Panama canal
expenditures last year were some-
! thing more than $29,000,O00. but would
be less this year owing to the ad-
vancement of the work of construction.
An issue of Panama canal bonds to
cover the expenditures of the two
years would be not more than $50,000,-
900, If that much.
There is considerable talk of urging
| Congress to rescind the provision TAX
| ing off the tax on sugar after May l.
| This undoubtedly would prove a good
revenue procedure. but Congress has
shown reluctance to depart from the
| original tariff program, and made no
| amendment as war emergency meas
ure when the question of raising
! revenues was before it at the last ses-
| sion. A continuation Of the war emer-
gency tax for a further period might
stand chance of meeting with ap-
proval of Congress, but there is strong
| opposition to this taxation as an added
! burden that may make political enemies
| fo~ the party In power putting 1t into
effect.
| The easiest way would be to tinker
| with the tarin-but political principle
and party obligation may stand in the
way of any changes. 1t has been point
| ed out that an added tax on tea and
coffee probably would produce no bur-
| den, direct or indirect, upon the con-
| sumner, and the tax be entirely borne
| by the foreign producer and handler
! and the importer. For there are fixed
| retail prices for graded teas and coffee
I paid by the consumer for many years,
! regardless of the wholesale market: and
| 1t Is even pointed out that the lifting
| Of the heavy tax imposed during the
civil war did not change these fixed
| prices TO the consumer. There are big
i proftsEn teas and cofkees out OF which
the tar can be paid without calling on
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