New-York tribune., 1915-11-26
McAdoo Outlines Admins
tration's Scheme to Meet
Big Deficit.
CALLS FOR NEW
DIRECT LEVlES
Republicans Declare Secretarys
Figures Are $200,000,000
= Below Sum Needed.
From Tho Tribune Bureau. ]

Washington, Nov. 25.-The admins
trations plans for financing the fast
accumulating Democratic deficit and the
defence programme were outlined in a
statement tonight by the Secretary of
the Treasurer. Mr. McAdoo declares
against the issue of bonds for these
purposes, argues that the necessary
taxes can easily be borne by the coun-
try, favors making permanent the
emergency" taxes voted last year TO
help out the Underwood tariff act, and
suggests that direct taxation Of various
kinds be resorted to. He estimates
the amount of extra revenue that will
be needed at $112,SO6, ,394.22.
Republican leaders declare that the
statement is more important for what
1t tries to conceal than for what it
says. While they find it indefinite in
many ways, they say that it really
proves that the total the administration
must raise. if it is to leave the Treas
ury in as good condition as it found il,
is over 100000, 600 5000 OO0, 900 above
the McAdoo figures.
Mr.. McAdoo's statement, the first of
fetal intimation Of the administrations
policy, also gives The first tabulation
on which TO bas discussion of the
past, the present and future of Demo-
cratic financing. 1t is expected to form
the ground for the great fight in Con-
gress on fiscal affairs. and to be one Of
the big issues e next falls cam
paign.
House and Senate Republican leaders
have not. yet had time to give the state
ment the careful study which they wish
before making a detailed summary of
the financial dilemma which confronts
Mr.. Wilson, but they detect even at first
glance many points which they feel
prove beyond question both the decep-
tive nature of the figures and the real
seriousness of the situation the figures
fail to conceal.
The statement starts with balance
in general fund" of $1O4,17O,105.7s on
July l, 1915. This does not include the
"disbursing officers balances" which
Mr. McAdoo has since added into the
credit balance in the Treasury state
ment.
More Balance" But Not Cash.
Three changes in the form of the
statement have been made since the
Wilson administration took Office, each
increasing the balance" without in
cressing the money. On October %,
1915, Harvey S. Chase, Of Boston,
certified accountant, formerly in
charge Of the preparation of the
daily statement of the United States
Treasury, made comparison of the
statement actually issued and the
statement as it would have appeared
in the form used prior to Mr.. McAdoo's
advent. On that date, he found, the
old form of Treasury statement should
have given a balance of S3,517,027.21.
The McAdoo statement made it S1I7,-
35,947.03, a difference Of S1141l8.919.-
50. To get at the actual condition OF
the Treasury. for a comparison with
the figures which Mr.. McAdoo uses IN
his statement, the discussing officers
balances of that date must be de-
Quoted, leaving a total difference be-
tween the McAdoo statement and the
old form on that date of S54,105.97O.-
10.
This hgure is a fuctuating one, de-
pending on the daily balances of va
rious accounts, so that it does not give
the exact difference between the new
form of statement and the old, except
for that date. Critics of the McAdoo
policy, however. declare that il proves
that the daily Treasury statement, in
the form used by McAdoo in the es-
timates issued to-day. shows about
S55,0OO,OOO more than the old form
would show. In other words. the
Secretary starts with sos 900 900 above
what ne would have had except for
the bookkeeper's help.
Mr.. McAdoo's statement assumes that
the balance with which the Treasury
opened business on July ], 1915. shall
be allowed 10 drop to $50, 100000 at
the end of the aevt fiscal year. Thus
he openly plans 20 pay S54,170,105.7S
Of the Democratic bills and deficit from
the surplus left by the Republicans
in the Treasury. This is declared By
the Republicans 10. be a direct vio-
lation OF the rules OF sound fnanc-
ing.
Passes sio,OoO,OOO Buck
A third point noted in the McAdoo
statement is that he allows S93, ,SO0,-
900 for the years expenditures for
defence. The estimates given out from
the Army and Navy departments and
approved By the President are for an
expenditure Of Sl36.273,1i3 more
than last year. Mr.. McAdoo, it is ex-
plaIned. has made no cut in the de-
fence estimates. but has made his si2,-
472.f43.5g saving by the simple pro-
cess of deciding that not all the money
appropriated will be spent during the
wear. and by chasing part Of the in
creascs as for other purposes than de-
fence. lie makes the total for pre-
paredness only sli6,s32,Ooo. Thus the