New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-11-29
Juggling with Preparedness.

DtNL Session Oh NOllElcoo. ITO obSNNiiiNAi~
of the condition of the Treasury and Of
the cost of the administrations pro
g~amme of military preparedness Is dis
ingenious and confusing. 1t resorts to
novel bookkeeping devices to conceal the
depletion Of the general fund of the Treas
Try caused by excessive appropriations
for purposes having nothing to do with
the national defence. 1t minimizes the
outlay 10 be made in 1857 under the
administration plans for the increase of
the army and navy. 1t deprecates the is
sue Of bonds to continue work on the
Panama Canal or the issue of bonds to
repay advances made on Panama Canal
c9nst~uc on. long overdue to the Treasury.
Vet I'm the same breath it recommends a
continuance Of the emergency war revenue
taxes, g retention of the sugar duties and
the lcvy:ng Of new income and excise
taxes
What is Mr.. NcAdoo's idea? lie has
never shown an interest in any other form
Of military preparedness than the pur-
c use cf feet of merchant vessels to be
srated by the government commercially
md turned over 20 the navy as auXiliaries
e. case Of war. The administration has
-Icen trying to avoid taking any measures
10 create a real national defence, on the
plea that the cost would be exorbitant.
Yet here is Nj. McAdoo initiating the bal
ance in the general fund by including in
it S5S.079.525 Of disbursing officers cred
It's and the national bank note redemption
.rnd Of S26,681 800. which used to be
carried as Treasury liabilities. He also
reduces the extra amount to be spent on
preparedness next year from S1l6,S32,O
tc S93 100000, OF the ground that al
t!ough the former sum has been estimated
Tor and will probably be appropriated
only 500. 100000 of it will be spent before
July /. 1917. What is the object of try
ing to make the country think it is going
70 get preparedness at reduced rates?
Gan It be that the Secretary of the Treas
Try and the President still hope to induce
Congress to spend S2O,0OO,OOO or S30,0OO,-
600 on a government-owned merchant ma
.ine, after providing for an insufficiently
increased army and navy?
The United States cannot escape the
necessity Of genuine military preparation.
That is for us an unavoidable conse-
cuence of the Great War. We are max
ing a good deal Of money out Of the war,
but we shall have to pay hereafter for
that business opportunity. We shall be
left in an international isolation after the
war is over which will compel US to arm
in self-defence. Congress might as well
recognize this fact and begin to lay the
basis Of a substantial and durable mill
tary system. Such a system cannot be
created by spending bookkeeping sur
plus in the Treasury or by asking Con-
gress 10 vote Sl16,382 900 with the inten-
ton Of using only $93,SOO,OOO of it next
year.
If Congress is wise it will disregard
Mr.. McAdoo's straightforward finance and
look the situation squarely in the face.
The sugar duties will have to be contin-
ued. They never should have been re-
moved. The emergency war taxes, used
last year and this year TO cover up ordi-
nary deficiencies, will have to be retained.
Other taxes may have TO be resorted to.
Yet there would be no need TO resort to
such additional taxes If the administra-
ton had the courage TO turn real money
into the general fund Of the Treasury by
Issuing Panama Canal bonds for the pur-
pose of repaying the excessive advances
made from that fund for canal construc-
ton.
The United States has laid an unfair
burden on the present generation by try
ing 70 pay the cost of the canal in so
large a measure out Of current Treasury
revenues. The canal will benefit the next
generation more than it can benefit this
one. Its cost ought 10 be fairly appor-
toned among the benefciaries. Congress
never intended 10 saddle three-ffths Of it
on the taxpayers Of single decade. The
Panama Canal act provided for the issue
Of S375,o0O,0 900 Of bonds TO meet the ex-
ponsc OF canal construction. But so far
only $l386O0,S 1863 has been raised by bond
sales, while 1927, 438,32l has been spent
out Of ordinary Treasury receipts.
There IS no good reason why the s222,-
438,32l so far advanced by the Treasury
should not be reimbursed and the con-
struction account from now on should not
be paid through bond sales. real sys-
TEN Of national defence is as great pub
lie need ss the Panama Canal IL. We may
lose the canal If we fail 10 put ourselves
In condition 10 defend it. II we shift 70
the next generation proper share Of the
financial burden Of supporting II we shall
have enough cash on hand with which to
create an adequate navy and 20 get mod
ern miIitaryklystem started.