The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1915-06-11
REVISION
IS NECESSARY
~ 81 49, i !
Democrats Must Replace Sugar
y Duties To Avoid National /,
Bankruptcy ;ss,~; +.
St. Louis Globe. democrat Pre-
diets Administration Flop
For Financial Reasons

s.
The st. Louis Globe Democrat treats
editorially OF the sugar situation in
its recent issues as follows: ~ D.
ga few months ago there was a.
wide divergence of opinion as to the
probable size of the treasury deficit on
June 80, the end of the fiscal year!
Mr.. Fitzgeralds predictions were pro-
nbnpced too gloomy bv Secretary Me-
Adoo and the President. But at the
beginning OF the laEt week in May ali
Indications point to- deficit OF at least
$50, DOC, 900. n..'
Treasury Deficit Appalling -
"Tbe net balance in the general
fund is the, lowest it has been since the
close Of Buchanan administration,
On April 80, Secretary McAdoo an.
nounced that it was $20.S15, 534.7I
Washington dispatches state that II is
now abont, $4,000, 900. The Income
and corporation tax, according to ex-
perts, will yield only about 20 per cent
Of what Mr.. McAdoo predicted some
time ago. f.tEgE
"The special war tax is not return
While imports are again increasing, the
larger and the revenue from dutiable
articles is smaller than. under the pre-
ceding tariff. But the expenditures
keep up. ., During April the receipts
from all sources were 1908, 262 less
than the expenditures. Compared with
April, of last year the expenditures IN
l A
decreased $2,331. 1903.
Extra Session Necessary
"Talk of M extra session of congress
increases. The new house leader, Mr..
Kitehin. is quoted as debating an exI
| the senate whip, has expressed the
! opinion that one win be called. That
| congress would alter the tariff in some
RESPECTS, If called, may be taken for
granted.
THE sugar provisions Of the Under
wood tariff will not 20 into erect until
next May. While the quantity Of 81.
gar being imported Is not rs great as
! last year, its value Is about as mufh.
, II is estimated that the duty from this
/ source will yield S45. O0o. 900 this ycar
! Democrats MUST Revise Tariff
at il incredible that congress will
hermit furtlEer increase of the deficit
= PIT other changes must be made to
take care of the Immediate deficit
Otherwise the secretary of the treasury
will have 70 issue bonds. The admins
tration shrinks from this, rememh ering
what embarrassment the issue of bonds
in time of peace caused the Democ ratio
party during Mr.. Cleveland's admins
tration.
"The sensible thing would be to re-
wise the tariff. II the Democrats con
slider the necessities Of the situation In
stead Of being scared by the bugaboo
of inconsistency. that will b. their
course. In spite of their brave public
lutterances, Democratic leaders know
thar thew made gross miseaIculatious as
| to the revenue. They then added to
their predicament by making ap7ro
priations beyond all precedent,
Five Per Cent Differential'
1.-THE decision of the Customs Court
that the five per cent differential
clause Of the Underwood tariff, provid-
, ing a rebate of duties on merchandise
carried in American bottoms. is valid,
but that the same rebate must be Civ
en- where the merchandise was carried
| in the vessel of any favored nation,
insures a revision of the tariff.
"About all the nations having ships
are favored, under existing treaties.
Hence the decision practically means a
horizontal cut of FIVE per cent on all
duties, How the coyIt arrived at such
a conclusion is as Mysterious as how
the treasury department came to sus
pend the diferential clause on account
of the favored nation treaties in the
first place. 1t is possible that the de-
cision will he reversed by the Supreme
Court Of the United States. On the