The West Virginian. [volume] (Fairmont, W. Va.) 1914-1974, 1915-02-03
BOND lssuJE q IMMllNIjENr.

Secretary OF the Treasury McAdoo
admits that there Is "a deficit OF sixty.
nine million dollars in the national
treasury despite the fact that the,
war; tax Is in full operation. Els
only hope IS that The income tax will
save the ministratio bacon.
The administrat ton has but awak.
eIed to The fact that Its policies and
hole. OF course. &c does not inten.
tionally admit that its policies have
had any thing to do with the deficit,
but II as much as says that Its ex.
trayagance has. It, therefore, Is
urged by NJ doc TO make cuts in its
estimates Of expenditures for tho
next fiscal year. In other words,
McAdoo at last admits for the admin.
istration that the Republicans have
been right In their ,iusistence that
many Of the administrations appro.
printions could not be met except by
further revenue prod uctng legislation
or q bond issue.
IL is pointed out by those familiar
with the sftuat lion that with the def
cit fiftynine millions December i
last II has grown ten millions III two
months since all features OF tho
WAR; tax went into effect. This tax
was imposed TO Offset tho fall in
revenues from the customs service,
but the way In which the deficit has
been mounting ever since the tax be.
gan to yield its returns would indl.
cate that revenues from this source
are falling below the amounts esti.
mated.
Treasury department officials have
been relying upon the income tax,
which lis cole cited in June, to cover
the existing deficit and bring the tls.
cal year to an end without serious
shortage The fear is now beginning
TO be expressed, however, that the
returns under the income tax this
year. both from corporations and In.
divdnals, will fall very much below
the amount estimated.
The business depression and tho
war conditions are bound to have q
decidedly adverse effect upon the in.
Come tax returns.
Secretary McAdoo estimated the
revenues from the income tax for the
present fiscal year ats $4,000, 900.
The present deficit of the treasury is
within about s1o,000o,0O0 of that
amount, and if the deficit should In.
crease In the next five months at the
rate that 1t has gone up In the last
two months It will, OF course, be in
excess Of the total estimated yield OF
the income tax. II. however, there Is
also q falling OFF In the income tax
receipts as now seems probable, the
shortage will be all the larger.
Democratic leaders in congress
fear that any effort to pass further
legislation o. this character on top Of
the war revenue tax will be fatal
blow 70 the Democratic party and
everything possible will be donc to
avoid this.
Without the ..swarn tax and with.
out the income tax, the Republicans
always had O healthy national treas.
ury. The fac THAT the treasury is III
such great distress under Democratic
rule should be sufficient to convince
the people that something is radically
wrong. That wrong has at least three
elements. namely, the tariff policy,
e3trayagance and the bad condition
the two have brought about, Tho
failure OF the income measure to
bring in as much revenue as was OK.
pected shows that business conditions
are not as good las they were. The
failure Of the swars., tax to overcome
the condih lions produced by the opera,
tion Of the tariff is another proof Of
the inefficiency Of the tariff, and
above all. &c the Democratic tariff
contention Is RICH the administration
has shown It's inability to adjust its
expenditures to the revenue 1t has
provided thus showing business in.
competency as well as ruthless ex.
travagance
The country cannot place itself on
the verge Of a bond issue and be
prosperoiis Debt Is not an evidence
Of prosnerfty. n.