Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1915-09-27
Our Turn Next.

| Prompted by the demand of the
European Allies for loan Of cool
billion Of American dollars, a Western
financial writer suggests that our own
government may need to borrow that
much money itself. According to him
the daily deficit in the federal treas
ury is s467,S44 or at the rate Of sl70,-
100000 a year. which suggests that
within three months it will be neces-
sary for the government to raise a
loan of at least 5000, 5000 to provide
for ordinary expenditures and a suit
able working balance.
Then if the talk of bringing the
army and navy to the state Of pre-
paredness materializes into action,
there will be required at least $780,
100000 more. SO that the banks and
! investors of this country may reason
ably look forward to being called on
within the next six months to lend
the United States s500,O00,000.
From July /, the beginning of the
governments fiscal year, the average
daily deficit to Sept. s was $467,344 in
excess of receipts making a total def
cit from operations of $s32.721,l33 in
little over two months. On Sept. s
the net balance in the treasury avail
able for such expenditures was Ssh
GIL. 502.
AT the current rate of deficit this
balance will be exhausted by the mid
die of December, if not earlier. APP
parently about the first matter that
will be brought to the attention of con-
gress on its assembling will be the
necessity for providing funds to meet
! daily expenses.
At the rate of s467 900 a day deficit,
the total for II months would reach
nearly s17OO0OOOo And as imports
continue to fall off. due to the contin-
uance Of the foreign war, the gap be-
tween income and expenditure should
grow larger, although even had there
been no war, the reduction on tariff
duties would probably have brought
about a treasury condition similar to
that which now exists.
| For the current fiscal year to Sept.
! 8, government receipts were $121,14l,-
GA against 3S,99s.947 for the CORES
ponding period in 1914, a decrease of
$17.S57,s74 or 1877 per cent compared
with last year. Up to Sept s of this
year the expenditures were s153,S55, POI
making deficit from operations of
$50. 714,l 1873, or an average daily rate
of s467,344. For the corresponding
period last year, the deficit from oper-
atoms was $25.754,375, a daily average
loss of s339,34s.
| In the present fiscal year the re-
ceipts from customs to Sept. s were
s34,37s.702. against s46.756.79 for the
corresponding period last year "Ordi-
nary" internal revenue showed an in
crease of about s4.1OO,O00, total re-
ceipts from this source being $685.
O9o, against SCI, 2s7.29O last year. Cor
poration and income tax receipts were
$40, 244.722, compared with s7,6ss,695 in
1914. In miscellaneous" receipts
there was a larger falling off than in
! customs revenue, the figures to Sept.
s being si0,2S3,05s, against $23.266.171
last year Neither the income tax nor
the internal revenue war tax" singly
or combined, has served to make up
the loss in tariff revenues.
The administration has been report
ed as setting no obstacle" in the way
Of the proposed loan to the Allies. Is
it because the administration hopes
that no obstacle will be set when 1t
has to borrow lot of money itself
to pay for its mad folly in cutting
down revenues while increasing ex.
penses?