The Owosso times. (Owosso, Mich.) 1897-1926, 1915-11-26
The OWOSSO TIMES
SUBSCRIPTION sI.oo YEAR
OWOssO, MICH, NOV. 20. 1915.
The Cause of the De ficIt.
entered ~ the Postoff1ce In Owosso for
transmission IS second class nstter.
Published everv Friday noon.

That the depleated condition of the
treasury is due to reduced tariff rates
rather than diminished importations,
is clearly shown by statistics which dis.
prove the following statement recently
made by Secretary of the Treasury
McAdoo:
Because of the decrease of imports
on account of the war, we have had an
enormous deficit. This deficit would
have been vastly larger, however, if the
old tariff bill had been depended upon.
At least $3.50, OOO 600 would have been
added to the deficit had the country de.
pended on the old bill"
That Mr.. McAdoo ignorantly or in
tentionally, mis- stated the facts will be
apparent when the records of his own
Department are considered.
For the nine months of the present
year ended September, 1915, there were
imported into the United States goods
to the value of 81, 302, 900, 600. in spite
of the war. On these imports the
Government realized revenue in the
sum of S14S, 224, 997, or an average rate
Of duty on all goods imported for this
period of but 1l3 per cent-about as
close to free trade as could be desired
by the most ardent free trader For
tht corresponding nine months of the
calendar year 1912 January-September,
under the Republican tariff law, we
imported goods to the value of 1897
000,0 600. On these imports the Fee a
Treasury realized revenue in the sum
of $242, 1874, $50, or an average rate of
duty of 1873 per cent, the duties so dis
tributed as TO afford fair measure of
protection to all American industries
and labor. Had this average rate Of
duty been collected on the imports for
year, the Government would have rea
LIKED revenue in the sum of $23S, 266, 600
Or 500, 900, 900 more than was actual Y
realized. For this period the low duty
rate of the Democratic law represented
monthly loss of $40, 600, 900 of revenue
to the Government. Bear this in mind
the anemic condition of the Treasury
is not due to decreased imports but to
the fact that so many are coming in
without paying cent of revenue to
the Government.
On September 80, 1918, after nearly
seven months of Democratic rule, the
net balance in the general fund of the
Treasury was 1923, 600, 600. On March
A. 1918, when President Wilson was in.
augurated, this balance amounted to
$149, 000 600. Tt e Democrats were pre-
sented with handsome Treasury sur
plus on March 4th with which to set
up housekeeping. The Underwood tariff
law went on the statute books October
4th, 1918, and the revenues began to
dwindle. However, due to the fact
that Republican rates on wool and
sugar prevailed for portion of that
fiscal year, the Treasury was able to
limp through with but small deficit
on June 30, 1914. With wool on the
free list, the duty on sugar reduced,
and millions of dollars worth of i'm
ports coming in free, things went from
bad to worse, and the outbreak of the
Europesn war was instantly seized
upon as pretext for saddling the coun.
try with the war revenue measure
Every device known ito tricky book
keeper was employed by Secretary Nc
Adoo to make good showing for
June 30, 1915, and vet there was a huge
deficit on that date. On September 30,
1915. the net balance to the general
fund had sunk TO less than t41, 900, 600.
BY piece of financial legerdemain
characteristic of Mr.. McAdoo, the cred.
it's to disbursing officers and the ma.
tional banknote redemption fund were
switched to the live asset column of the
Treasury statement, and on October 1,
1915, the net balance was inflated to
$12S, 900, 000, an increase Of $S7, 900, 600
over night.
About the time Mr.. McAdoo was
making the statement to the people of
Salt Lake, above quoted, bulletin
was issued by Secretary Redfeld's de.
psrtment. which stated: DUTY free
imports comprised 7l.6 per cent of the
total imports for September, 1918, and
81 per cent of those of September,
1914" That IL the prime reason, to.
gether with the extravaganza Of the