The Logan Republican. [volume] (Logan, Utah) 1902-1924, 1915-10-30
BOND ISSUE NOW
SEEMS INEVITABLE
Revenue from Free Trade Tariff Is Not
Enough to Meet Ordinary Expenses of
the Government, Says Thos. F. Logan.

| Hdue III the fluctuations in prices in
foreign markets were to be follow.
ed accurately, and at best this rene
dy merely won be supplemental to
Protective Tariff the Redfield rem.
edy would be like sweeping back the
ocean with a broom.
! McAdoo's New System Of
Bookkeeping
There is no doubt now that the ad.
ministration is coming around to a
bond issue. The President and Sec.
rotary McAdoo hated to think ABOUT
it, and Mr.. McAdoo denied that such
an issue would be necessary, but at
last the administration reluctantly
consented to this last means of meet.
ing a huge deficit in the Treasury
Another method adopted meth.
TWC-BOND ISSUE :. 5R.. ecm
cd that must cause much amusement
to bankers throughout the country
is the sudden change in the Treas
ury bookkeeping system. BY the
added 100000 to the assets of the
government. Unfortunately his an.
nouncement that there is now a
working balance of $l2S,000000 in
the Treasury does not increase the
national financial resources by a
single penny, because there is only
working balance of s4S,OOO,OO0 and
an actual deficit of $40,OOO,OOO and
no amount of trick bookkeeping can
alter the facts.
All that Mr.. McAdoo has done is
| to write down as an asset all of the
money OF the government that Is in
the various repositories, every dol
lar OF which was appropriated for
| specific purposes and is pledged. It
is as though business man turned
over 800 to his secretary, and while
! the secretary was on his way to pay
that amount on bin, the business
man put the amount down as an as
set. The money is assigned for a
specific purpose and already has been
paid out. The mere fact that 1t mas
not reached its final destination does
not change the fact that the govern
ment is unable to use the money for
any other purpose.
Three or Four Hundred Millions
1t is reported in Washington that
the proposed bond issue to make up
for the inefficiency of the Underwood
Tariff will amount to three or four
hundred million dollars and will be
used for the purpose of military pre-
paredness. OF course, what the mon.
ey really is needed for is the deficit
in the Treasury which already
amounts to $4O,OOOOOO and will reach
800, 100000 at the end of the fiscal
year. Under cloak OF preparing
the country for war there is to be a
great bond issue which also will be
used to cover up the deficit.
About this time in every Free
Trade administration it is customary
to look for bond issue. There was
one in the Cleveland administration.
And is It to be wondered at when the
Free Traders already have thrown
away $20,000,000 in the wooden sche-
dule alone and are about to throw
away s50,0O0,000 in the sugar sche-
dule?
Does Not Yield Sufficient Revenue
II is realized that an elaborate plan
OF preparedness will Of itself be a
load to carry with an element of the
public aside from the additional han
dicap of running into debt to perfect
it. Yet there Is no other way, ac-
cording to accepted Free Trade pol
icies, since the Free Trade Tariff
does not even yield sufficient revenue
for the ordinary expenses Of the
government.
In point of fact, the belief obtains
in hign financial circles in New York
that II things continue as they are
going now for many months longer
the administration will have to re-
sort 10 selling bonds to pay the gov
ernments butcher, baker and candle
stick maker.
II the administration pushes In
the incoming Congress Secretary NC
Adoo's project for a government f.
nanced merchant marine still another
issue of bonds win be required and
II ie generally assumed that Presi'
dent Wilson will resume his fight Tor
this legislation next winter.