The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1915-03-15
The Nations Finances.

The Nations Finances.
The financial condition of the Federal govern
ment is set forth by Chairman Fitzgerald OF the
House Committee Appropriations and by Mr..
| Gillett senior Republican member of that commit
tee. From neither Of these statements can the
President extract much consolation. nor can the
country get much hope from them that the govern
ment will be able to pay its way without either
lrcsortng to new forms of taxation to issuing
bonds. Both Chairman Fitzgerald and Mr.. Gillctt
show that the working balance in the Treasury has
been reduced from SI4o,oooooo to little more than
S4o,oooooo since July l. 1914. The excess OF dis
bursements over receipts has been at the rate Of
IS 900 900 a month and in nine months SIoo,ooo,
600 surplus left by previous administrations has
been taken from the Treasury TO pay the excess
Iof government cost over government revenues, Mr.
Gillctt having Yankee mind trained to the belief
that Won must catch your hare before sknning it,
says that the administration is travelling the road
ito bankruptcy. Chairman Fitzgerald, in an effort
to hold out ray OF hope points to the law author
Iizing the sale OF Panama Canal bonds. The Pana-
ma Canal bonds were. however, authorized to pay
for the construction OF the canal, which has been
paid for out of the ordinary revenues, and it IS
difficult to how the sale OF those bonds now
to raise money to run the government would be
different from the Issue OF other bonds or ccrt-
Gates of Indebtedness.
Both these authorities show that the Demo-
cratic promise of economy has failed of realization
in the first half of the administration The failure
is shown by an increase of SI77,oooooo appropria-
tions in two years over the appropriations made
by the last Republican Congress. The Rcpubll-
can Congress also paid out of current revenues
$40 600, 900 more the construction of the Pana-
ma Canal than did the Democratic Congress
So it appears that the old Democratic promise
of economy has than failed. 1t has, on
falling revenues, advanced appropriations all along
the line 1t has created new, expensive and I'M
tried government machinery, created more high
salaried official positions than any preceding Con-
grcss and MIR. Gllctt says that the party in power
has ccntcrcd all its thoughts and efforts on how to
spend money without giving consideration to the
question OF how the government is to secure reve-
nuc to pay its obligations.
President Wilson said that the Sixty-third Con-
gross was the busiest Congress that had ever sat
in Washington. The gentleman in Pennsylvania
who inherited fortune and in his successful ef
forts to spend ii became known millionaire
for day. was also very busy man, but he then
nue. to pay its obligations.
1t is not often the two party leaders the
Appropriations Committee agree well in show
ing up the extravaganza of Congress, but Mr..
Fitzgerald had so often lcctured the House on the
extravagant appropriations that he could not
ignore the folly in the end defend it. The prob
lem before the administration is serious one
with the Treasury balance already below the
$4,000 900 which has for years been considered
the danger point, and the deficit increasing at the
rate of 81 5000 900 month. But now hear
more of economic effort to help various classes OF
people than we do of economy in government cx-
penditures The Assistant Secretary Of Agricul-
ture says that up to the beginning OF this admin
istration the rule to put the soft pedal all
works that dealt with the economic side OF our
agricultural problems for fear of jarring some
body's nerves The agricultural bill carries $4,000
COO in appropriations, and it the economic
thought behind the rural credit BILL calling for
$50 600 900 more from the Treasury, and the near
adoption of that bill amendment to the agri-
cultural appropriation which jared the nerves of
Chairman Fitzgerald.