The Sentinel=record., 1915-01-29
DEFICIT WILL BE $lO,OOG,O0O
This Estimate is Made by Secretary
OF Treasury McAdoo - Cabinet
Members to Cut Expenditures in
Their Departments.

Washington, Jan, 2S.-Leaders OF
the administration in conference to.
day with President Wilson decided
that there was no immediate need
for legislative action to increase the
governments revenues
Secretary McAdoo announced to.
night that it had been agreed that at
the end of the fiscal year the govern.
ment would know better the effects
of the European war and what. Il
anything, is necessary to be done.
Mr. McAdoo declared that he still
stood by his estimate OF the govern.
ments revenue for the fiscal year
ending June next, which. compared
with his estimates of expenditures.
would leave a deficit of $4,000, ,000
1t was understood after the con.
terence that suggestions that the
war revenue act be extended for six
months and that congress abandon
the $34,000,0 900 rivers and harbors
bill, struck no responsive chord. On
the other hand the cabinet officers
in accordance with the presidents
suggestion they had cut their esti.
mates Of expenditures to the very
limit, and could not make further re-
ductions without impairing the eff
cheney OF their departments.
The estimates sent to congress in
December aggregated $710,000.000. to
which $2S,000O0O was to be added
for Panama canal disbursements.
Some additional estimates have
been sent in since then, however,
and substantial additions to the pro
posed appropriations have been
made by the house committees in
drafting the supply bills. Secretary
McAdoo's estimates of revenues. ex-
elusive Of the postoffice department,
was $72S, 100000 This included
$220,000000 from customs, $305, ,00a,-
900 from ordinary internal revenue,
$54,000,000 from the emergency war
tax and $S0000,000 from the income
and corporation tax
IN a statement on the white house
conference which Majority Leader
Underwood and Chairman Fitzgerald
of the house appropriations commit.
tee attended, Mr. McAdoo said
The conclusion was reached that
no action is necessary now as we
shall know better at the end of the
fiscal year 1915 what the effects of
the European war will be, and what
is necessary to be done.
Since the new tariff and income
tax law was passed in 1913 there is
deferred until June OF each fiscal
year the payment into the treasury
OF Is to so million dollars of corpora
tion and personal income tax. Pre-
vious to that time, almost the total,
receipts Of the government were re-
Elected in the revenues collected
daily and shown in the daily treas
ury statement In June, 1915, &
most the entire amount of the cor
poration and personal income tax
viii be paid just as in 1914, and
what appears to be a loss in revenue
will in the meantime be overcome
In support of Mr. McAdoo's state
ment, some officials pointed out that
there was reason to believe that the
war revenue act would be at least as
big a revenue producer as had been
expected. Available figures up to
December last show that six hundred
million war revenue stamps had been
sold by internal revenue collectors
throughout the country. During the
entire year 1899, when the Spanish
war tax was effective. the number of
! stamps sold was l,650000,000. The
value of those sold to date under the
present law has not been determined.
Secretary McAdoos estimate for
customs receipts for the coming
year. $4,000, 900. is about $4,000
goo under the receipts for the fiscal
year 1914.
To date customs receipts have
been about S122,000,000, with five
months yet to go before the end of
the fiscal year In the same period
| last year the customs receipts were
about S17S,000. 600. Treasury Off
cials, however, said today that with
revival of business there might be
marked picking up in customs re-
ceipts during the next five months.
It was said that large importations
of sugar we're expected in the spring.