The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1915-06-07

Wnerc the money NomeS IToH " 80
vide Huge Requirements Of $1,000,
100000 Year, and What It 10 Spen'
For-Liquor and Tobacco Main Sup
port of Federal -Government-Susa'
Brings Largest Customs Revenue
Pension Sill, Army and Navy Big
| gest Items Of OBSERVATION-DISCLOSURES
| Now Confronting Treasury Involves
| No Serious Results.
WASHINGTON, June lit costs
| Uncle Sam something over billion
dollars year, practically $3.0O0,oOo a
day, counting work-days, holidays and
Sundays, to run the machinery OF ms
! government The national cost or Nv.
Ing has just about doubled in the past
twenty wears. Back in the early nlne-
ties, Thomas B. Reed, then speaker
of the house of representatives, re-
Piled to the charge that congress IN
its two years sittings had appropriate
ed billion dollars with the famous
statement, This is billion dollar
country" 1t was not until 1909, now
ever, that the expenses OF any single
year exceeded billion dollars and
from 1910 to 1912 the figures dropped
below this level. Beginning with
1918, however, the cost OF governing
the American people has continued at
more than billion dollars annually
and it is not likely that it will again
fall much, if any, below that hsure.
1t is safe to say, therefore, that the
United States now is not only bill
lion dollar country but billion dol
lar year country.
Two causes have contributed large
ly to this increase in the cost or run
ming the governmental business OF the
American people. One is that the
country has been growing rapidly IN
population, wealth and resources. Inc
other reason is that we are settlns
more government than at any time IN
our previous history and in govern
ment it is quantity not quallty that
is expensive. The multiplication OF
governmental activities, the creatlon
of new boards, commissions and ue-
partments, and especially the much
greater activity of the federal govern
ment in regulating the affairs OF ousl-
ness has added greatly in recent years
to the price that Americans pay Tor
their nationality.
1t is true that those who claim tnat
the affairs of he nation are not con-
Quoted with due regard to economy
can show that there is extravaganza
in certain fields of governmental ac-
tivity, and that the cost of running
the machinery has advanced more
rapidly than have population ana
wealth. The late Senator Aldrich is
reported to have declared on one oc-
casion that lie could save S3OO,OOO,0 600
a year in national expenses If he could
introduce business like methods in all
departments During President Taft's
administration an economy and eff
cheney commission was created Wh1ch
made a careful study of governmental
expenditures and recommended vari-
Gus money-saving reforms, but con-
gress never has paid any particular at
tntion to these suggestions. In this
respect congress reflects the spirit of
the country, for few Americans de-
vote any thought to the way in which
the money they provide through taxa
ton is spent. Probably not one in
ten thousand could name half the
items running to 500, 100000 year or
more ON which his money is expended.
Hardly a greater number could tell
with any degree of accuracy how the
enormous sum of billion dollars a
year is raised, although on this side
of the ledger the matter is brought
more directly home to the average
citizen through the taxes which he
pays knowingly Or unconsciously.
The two main sources of revenue
for the government are tariff duties
and internal revnue duties. Each Of
these has brought in over $3o0,0co,-
900 annually for several years past.
Receipts from the income and cor
pcration tax are relatively small and
probably will not amount to more
than s60,000,000 The so-called war
taxes are expected to bring in little
less than $5,0O0,000. Formerly the
customs receipts were larger than
those from internal taxes, but since
the reduction of duties by the Under.
wood tariff law and the imposition OF
the corporation and income taxes
which come under the general head OF
internal revenue, the latter have jump
ed far in the lead.
While most persons know in gen
eral way Of these two divisions OF
governmental income, it may surprise
many Americans to learn that the
/ chief reliance of the government for
| it's support is upon liquors and to
| bacco. This is the fact, however. In
! 1913, the last full year for which fig
ures are available. the revenues from
alcohol and tobacco amounted to 1852,
600, 900. or almost one-half the ordin
airy net receipts from all sources, ex
! Guiding postal revenues. This vas
! sum includes import duties on foreign
| liquors and tobacco brought into thi!
country. as well as the internal take!
upon those purchased here. Wine!
and liquors yield a much large
amount than tobacco, the total from
the former amounting to considerabl,
more than s2O0,00O.0o0. Should ma
tionai prohibition ever be adopted ant
enforced, it is easy to see that the fed
eral government would have to devils
a new system of paying its runninj
expenses.
Among the commodities which COZ
: tribute TO the support of the govern
[ ment through the customs dutie
which they pay to enter the country
sugar easily holds the leading place