Middletown transcript., 1915-06-19
NATIONAL FINANCES
1t is Officially Admitted That The
Shortage Will be $50, 100000
CASH BALANCE is SI4. .000- a00

CASH BALANCE is $4,000, 600
1t is officially admitted that the deficit
for the current fiscal year will not be
less than $40, 900, 600. AS a matter of
fact, there is every reason to expect
that it will considerably exceed that
sum. There is now a cash balance in
the Treasury of little over $14, 1000, 900,
and including the money that has been
spent on the Panama Canal, disburse-
ments for the year have exceeded the
receipts in the sum of $l32, 089, 1893.
These are formidable figures and yet
they do not tell the whole story, for the
Post Office Department has run behind
to the extent of about 500 600, 600 so
that the excess of outgo over income
hrs been more than $152, 900, O8O. Thus
far the Treasury receipts have totaled
1854, 754, ,061, or approximately $40, 000,-
900 less than for the corresponding
period of 1914.
These extremely unsatisfactory CON
ditions are primarily attributable to
Democratic extravaganza and mis-
management. OF course, the party
apologists insist that they are due to
the War, but this excuse will not serve.
1t may be admitted that they have been
aggravated by the var, which, for
tunately for the manufacturing indus
tries of the county, has led to a restric-
tion of importations, but the decline in
the receipts from ctstomers' duties had
heen marked before the war began, and
had there been no war a very similar
situation would undoubtedly have ex-
listed. 1t is through the operation, of
the Wilson Underwood near Free Trade
Tariff and the coincident extravagances
of the present administration that the
United States Government has bees,
brought to its present pass, and tfAsG
responsibility for it rests on the de-
structive policies of the Democratic
party and on its frequently demon
strated incompetence for anything in
the nature of constructive statesman
ship. In its eagerness to destroy the
Protective system under which the
American people had enjoyed the pros
perity which now they mourn it deaf the
country two deadly blows, for while it's
industries were prostrated on the one
hand its revenues were depleted on the
other.
Just how bad financial situation the
country will have to face and just how
large will be the vacuum for which
Congress will have to provide viii not
be certainly known until the end of the
current fiscal year, when the returns
from the income and corporation taxes
shall have been received. 1t was Sec
tetary McAdoo's original estimate. that
these taxes would yield $l00, 600, CO.
Since then the calculations have been
revised, and in view of the business de-
preston which has prevailed ever since
the Wilson regime was inaugurated and
of the reduction in all kinds of profits
which has occurred, there are some
Treasury officials who privately express
the opinion that the Government will be
lucky if it gets as much as $75, 600, 600
from this source. Whatever the fact
may prove there will be deficit which
will probably be met by an issue of
Panama Canal bonds. and if that were
all the outlook would be less discourage
ing. What causes grave concern is the
reflection that things are bound to get
worse rather than better and that the
administration is confronted by crisis
which must be met.
The so-called ''war taxes" which
were recently iammed through Congress
have not proved as productive as had
been hoped and they expire by limita-
| ton at the end of the year This year
the Treasury will derive he substantial
sum of $45, 900, 900 from the duty ON
sugar, but early next year under exist
ing law sugar goes on the free list.
There will evidently have to be more
taxation of some kind 8. = the aSmipis
tration will be compells, Nd. j5se be-
tween the imposition q further taxes
of the direct variety or some re-adjust-
ment of the Tariff Perhaps President
Wilson will continue to insist upon free
= sugar, and perhaps he won't You
never can tell. Philadelphia Inquirer.