The Watertown weekly leader. [volume] (Watertown, Jefferson County, Wis.) 1912-1917, 1915-11-23
DEFICIT DUE TO TARIFF REDUC-
TONS.

Washington, Nov 22.-Specia1 Cor
espondence.-That the depleted con-
dition of the treasury is due to re-
reduced tariff rates rather than di
minished importations, is clearly
shown by statistice which disprove 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 $130,000,0O0 would
have been added to the deficit had the
country depended on the old bill"
That Mr.. McAdoo, ignorantly or in
tentionally, misstated the facts will
be apparent when the record of his
own department is considered.
For the nine months of the present
year ended September, 1915, there
were imported into the United States
goods to the value of$1 1902, 600, 900, in
spite of the war On these imports the
government realized revenue in the
sum of $148,224,997, or an average rate
of duty on all goods imported for this
period of but 11.3 per cent.-about as
close to free trade as could be desired
by the most ardent free trader. For
the corresponding nine months of the
calendar year 1913, January-Septem-
Der, under the republican tariff law
we imported goods to the value of
81, 1927 900 900. On these imports the
federal government realized revenue
in the sum of 242,624 1853, or an aver
age rate of duty of 1873 per cent,
the duties so distributed as to afford
fair measure of protection to all
American Industries and labor Had
this average rate of duty been col
lected on the imports for the first nine
months of the present year, the gov
eminent would have realized revenue
in the sum of $238,266, 900, or $90,000,-
900 more than was actually realized.
For this period the low duty rate of
the democratic law represents a
monthly loss of $10,000,000 of revenue
to the government Bear this in mind,
the anemic condition of the treasury
Is not due to the decreased imports,
but to the fact that so many are COM
ing in without paying a cent of reve-
nue. to the government.
On September 80, 1913, after nearly
seven months of democratic rule, the
net balance in the general fund of the
treasury was $123,000.000 On March
4, 1913, when Presiden Wilson was in
augurated, this balance amounted to
100000. The democrats were pre-
scented with handsome treasure sur
plus on March 4th with which to set
up housekeeping. The Underwood tar
If law went on the statute books Oc-
tober 4, 1913, business went to smash
and the revenues began to dwindle.
However, due to the fact that republi-
can rates on wool and sugar prevailed
for a portion of the fiscal year, the
treasury was able to limp through
with but small deficit on Jnue 80,
1914. With wool on the free list, the
duty on sugar reduced, and millions
of dollars worth of imports coming in
free, things went from bad to worse,
and the outbreak of the European war
was instantly seized upon as pretext
for saddling the country with war
revenue measure. Every device known
to a tricky bOOkkeeper was employed
by Secretary McAdoo to make a good
showing for June 80, 1915, and yet
there was huge deficit on that date.
On September 80, 1915, the net bal
ance in the general fund had sunk to
less than $41,000,000. BY a piece of
financial ledger demain characteristic
of MIR. McAdoo, the credits to disburs-
ing officers and the natioal banknCte
redemption fund were switched to the
live asset column of the treasury
statement, and on October l, 1915, the
net balance was inflated to $12S,O00
000 an increase of 100000 over
night.
About the time Mr. McAdoo was
making the statement to the people of
Salt Lake City, above quoted, a bull
letin was issued by Secretary Red
fields department which stated: E"Duty
free imports comprised 716 per cent.
of the total imports for September,
1916, and 81 per cent. of those of Sep
TENDER, 1914"
That is the prime reason, together
with the extravaganza of the last dem
ocratic congress, for the treasury de-
felt, and no argument of Mr.. McAdoo,
however ingenious, can alter the fact