Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1915-01-28
GUT ESTIMATES
OR SWELL TAXES
SHRINKING REVENUES PLACE
WILSON ADMINISTRATION IN
DILEMMA.
DEFICIT GROWING LARGER
AND CAUSING WORRY
Cabinet Members Hold Conferences and
Determine to Cut Government Ex-
penditures to Limit - Rigid Econ.
omy Order Goe. Out to Various De-
partments.

Washington, Jan. 2S.-The admins
tration is on the horns of dilemma
with reference to the revenues Of the
government.
1t must make wholesale cut in the
estimate of the appropriations for the
next fiscal year or it must ask for an
increase of taxes in order to prevent
a large deficit in the treasury.
Believing the former more desirable
and possible a meeting Of all the mem
bers Of the cabinet, with the exception
of the secretaries Of war and COM
MERGE took place today at the treas
ury department. only one general
appropriation bill has been passed.
which is fortunate in view Of the de-
cision to curtail expenditures. The
others are to be pared to the bone.
Deficit Growing Fast
Even such economies as contem-
plated may be insufficient to protect
the treasury from the dreaded deficit.
1t was disclosed today that on Dec. l,
when all the provisions OF the def
cheney revenue measure went into ef-
feet. the deficit amounted to s5e.0Oo.0o0
The deficit today is s70,ooo.0o0. The
increase therefore. is at the rate OF
s.. 600, 200 per month.
Treasury officials insist however
that too much stress should not be
placed upon these figures. They es-
innate that the war revenue taxes Will
provide $4,000, 900 by June 80, and that
this will be sufficient to offset expendi-
lures.
But 1t is further admitted that as a
result Of the war many corporations
are passing dividends. This will mean
that the governments revenue from
the income tax law will be reduced
Again. reports received at the treas
ury department show that people are
making economies and are not pur-
chasing as much tobacco. beer and
whisky as in the past. Thus the total
derived from internal revenue taxes
will be less than last year II is stated
! also that there is apt to be deficit IN
the postoffice department as result
of the shrinkage in business. rms
/ deficit is placed at about s10.00O,OOo.
Rigid Economy Ordered
! The administration does not want
! TO 70 TO COlSTtSS Will Il iS4NN@'s nc
additional taxes shall be imposed. Fol
this reason a policy of rigid econom.
has been determined upon Every
member of the cabinet was urged to &c
over the estimates submitted to con
gress in December and strike out every
/ cent not absolutely required
One of the striking illustrations OF
! the manner in which congress has
added to the difficulties of the fisca
conditions was furnished by the eX'
perience OF the postmaster general
He had pared down the estimates OF
the postoffice department by propos
ing that the rural free delivery car
riers should be placed on contrac
instead of the present salary basis
that salaries of certain postmaster
and assistant postmasters be reduced
and that there should be re-adjust
ment Of compensation for carrying tn
: mails. Congress refused to agree t
these Recommendations and not oni
, provided for continuance OF presen
} conditions but made additional ap
J propriations of an amount that In