Evening star., 1916-10-31
SAYSU.S. TREASURY
FACES BANKRUPTCY
Republican Committee, in
Statement, Claims 1t Is Prac-
ticaIIy So Now.
"FALSE,"' SAYS Mr.. McAD00

''The Treasury of the United States is
practically bankrupt" said statement
issued today by the national republican
congressional committee. "Since Con-
gress adjourned, expenditures have ex-
ceeded receipts over 100000 a day. At
the close of business last Saturday
night there was an actual net balance
in the general fund of little less than
$4,000. 600. and this will be wiped out.
On election day the Treasury will be
empty.
This statement is toe false to de-
ceive. and too foolish to notice: ~ IL
simply campaign misrepresentatlon,
said secretary McAdoo of the treasury
Department, commenting upon IL tooay.
Secretary McAdoo pointed out thar
the net balance in the general 1uno oI
the Treasury at the close of business
Yesterday was s153,es7.1 which in.
cluded SS7O16,347.69 to the credit OF
1isbursing officers. This was not Tor
merIy included in the general balance.
Disagrees With Treasury.
The statement of the republican con-
xrsssionaI committee takes issue with
the method adopted by the Treasury
Department III computing the general
balance today. 1t said:
The actual present depleted condi-
tion of the Treasury and the lmmlnent
wiping out altogether of the general
fund balance is not readily apparent to
statement as published in the news
papers For instance. Saturday last
this balance was given as s1s3.770,5s9.
But included in it, as shown by the
ofiicial Treasury statement OF october
a. is ss5.57O.362 to the credit of dis
bursting officers, which. according to
experts. should be deducted: s45. 5.171,6s2
for the redemption of national bank
notes. which is a general fund liab1l-
ity and should be deducted. and Sl7.-
24o,9s5 in subsidiary silver coin, silver
bullion, minor coin and unSorted cur
rency carried in the general balance
which is not available to meet the OBJ
legations of the Treasury. Consequent
was left in the Treasury last Saturday
only $5,7S7 SO, and at the present ually
loss this will vanish in few days.
bankrupt Treasury on election day. di-
rect and burdensome taxes and bonds
in time of peace will not be pleasant
thought to the voters next Tuesday.
The statement also insisted that at
the rate the money of the government
is being expended the deficit at the
close of the fiscal year will be over
$500, 200. 900. The new revenue law will
not Offset these expenditures, 1t is con-
tended. for the highest estimate of re-
Turns from tHlS INV Is e-VopoUu'UoV. II
was pointed out that the administra-
tion plans to issue s130.000.000 of
Panama canal bonds to supplement the
revenues from taxation.
No Bond Issue Considered.
At the Treasury Department today it
was stated that when Congress was
considering the big program of ex-
penditures for preparedness, and to
meet the Mexican situation, and other
extraordinary measures estimate was
made in the committee of appropria-
tions of the House by Representative
Kitchin that bond issue of s125,000.-
900, and in the Senate committee by
Senator Simmons. of $130. 900. to
meet the cost of the Mexican situa-
tion.
. But no issue of bonds is now under
Consideration by the Treasury Depart
Hent. Officials state positively that
while. sooner or later. the issue OF
bonds may be imperative. there is no
thought being given to the prospect at