The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1915-11-26
M'Adoo Favors Increase
In Internal Revenue to
Meet Defense Program
Balance. s113.s44,605.7s.

4, Balance, $113,644. .6o5.7S.
"It may be assumed that there will
be appropriated by the congress Tor
supplemental estimates and dehci-
encies for the fiscal year 1916, a total
of $12, 100000. .-r-
Surplus for fiscal year 1915 (assum-
ing that emergency taxes and sugar
duties are continued) 44,6o5.78.
Panama canal payments for 1916
are estimated at $25, 100000. These,
under existing law, may be paid by
sale of bonds. If paid, however. out
OF current revenues, we must deduct
$25. .000,000 49,.
"On this basis, available balance at
end Of fiscal year 1915 would be $751;
ga, COSTS. ... SIS rs. ...
"Now let us consider the fiscal year
1917. which we begin with balance
In the treasury of $76,644,605.78.
Total estimated receipts. on the as
sumption that present emergency
revenue taxes and duties on raw
sugars are continued. $73o.500.0OO.
Total for 1917, $S07.144, ,605.7S. -.
Total estimated disbursements. IA
cinding $93,S00.000 new or additional
expenditures for greater national de-
Tense or preparedness and excluding
Panama canal payments. $832.951,0O0.
deficiency 1917, S25,S06, ,394.22.
Estimated deficiencies and sup
Elemental appropriations for lSl7'
s12, ,0o0,0 ,0eO.
add for working balance in treas
ury to begin fiscal year 1918, $bo.o0O,-
600.
Panama canal payments for 1917
are estimated at $25,000,00o. EE
"If paid out of revenues and not
from sale of bonds. add $25,000.oo0.
ION this basis the total new reye1-
I,,o - o. Ia
$112, 500, ,394.22. ...
'Tf, however the Panama canal
payments for the years 1915 and 1917,
amounting to a total of $50.0o0.000,
should be paid from the proceeds of
bond sales, then the amount OF ad-
ditional revenue which must be rails
ed for the fiscal year 1917 is estimated
to be $62, ,806, ,394.22. It would not be All
unusual thing to finance the Panama
canal payments by the sale OF govern
ment bonds; in fact, $138, 500, $500 OF
Panama canal payments have been
met by the sale of such bonds. as fol-
lows:
Series of 1905, administration OF
President Roosevelt, 2 per cent, prin-
cIpal of bonds $54.C31.9S0; premium
received $1,946,606.62.
Series of 1908. administration of
President Roosevelt, 2 per cent, prin-
clpal of bonds 30,0OO,0O0; premium re-
ceived $731,00S.21.
Series of 1911. administration Of
President Taft. per cent, principal Of
bonds $50.00o,000; premium received
$1.291 .274.19. &.
Total principal of bonds. $1s4,631,-
$50: total premium received $685.
$500.
Total realized $13s s.600.S6e.o2.
Under the present administration
all payments for the Panama canal
have been made out of current
revenues. amounting since March 4,
1918. to date. to $87.036.S1S.20. There
Is no necessity in my opinion for the
issuance Of bonds. Notwithstanding the
continuance of the European war and
its inevitable effects upon the reve-
nues. believe that 1t would be far
preferable to continue to pay the
expenditures for the Panama canal out
of current revenues, especially since
the canal is almost completed and 1t is
likely that the demands upon the
treasury from that source will largely
decrease in the near future. If the
policy is adopted Of providing sufficient
revenues to cover the Panama canal
payments as well as all other demands
on the treasury, 1t will probably be
broad enough to take care of any
ordinary fluctuations in the revenues
and expenditures OF the government in
the future. Therefore. if bonds are not
issued for Panama canal payments, the