The sun., 1916-12-07
M'ADOO FEARS VAST
US. DEFICIT IN 1918
Warns Congress That Govern.
mcnt Must Find New Ways
to Pay It's Bills.
URGES ANTI-"pORK" ACT
He Declares "Omnibus Public
Building" Measures Should
BE Abandoned.

wAsHiSoroN. Dec. a warning to
Congress that the United States Gov
ernmcnt must nnd new ways Of raising
money TO pay It's bills Is uttered by the
Secretary OF the Treasury In his annua
report for the fiscal yca ended June 80.
1915. made public to-day.
Just nov the country IL IN the crest
Of . rave Of prosperity. says Secretary
NcAdoo. n Is piling up a s~tupendous
stock Of gold. which has changed It's po-
sition from q debtor 10 a creditor ma
don. But the future holds a less roseate
prospect for Government finances. The
Treasury chest Is being depleted and
the hscai year 1918. according to the
estimates OF, the Secretary Of the Treas
ory. will zee It entirely c~mpty-despite
the increase In the income tax and the
enactment of an Inheritance tax law
uhicss Congress devises new ways to
raise money.
The fiscal yea Just ended has been a
prosperous one for the Government. The
balances In the Treasury on June 30 was
eI7S.491.t15.5S, an Increase for the year
OF s7i.32t.3Os. But tho Treasury esti.
mates show that this balance will bt
cut down 10 Sl14.937.9?5 at the end OF
the current fiscal year and that 1t will
disappear altogether before the end OF
Tire fiscal year Of 1915.
III other words. Uncle Sam Ii a prodi'
gal old gentleman who is paying money
out faster than 1t is coming In. and III
must either curtail his extravagances OF
levy upon his citizens to meet his bills.
Main Cause IL Preparedness.
Secretary McAdoo attributes this pros
poet to the huge outlay for preparedness
for the most part. In his estimates III
also accounts for the maintenance Of tn,
troops on the Mexican border up to De
ccmber 81. II they are to be held there
beyond that time. he says. 1t will b.
necessary to reimburse In Treasury 70
their expenses by the sale OF Panami
bonds Or by additional, revenue legisla
ton.
IN his ,r3view OF tho condition Of TIT
Treasury Secretary McAdoo says:
"On June 30. 1916. the balance In the
Treasury Of the United States exclusive
OF credits to disbursing %oficcrs) wa:
t17S.iai.ii5.5S. as against IA balance
,~exciudiny credits TO disbursins o~fiicers)
o June 80. 1915. Of SlO+.l7o.l05.7S
Blowing an increase for the year o.
s1i3:I. S0?.SO. This was the larGes
balance In the Treasury at tho close o.
any fiscal year since June 80. 1908.
The ordinary revenues Of the yea
were s77?.sst.552.a9. All increase Of $s1.
1SO.l0I.31 az compared with 1918. In
tcrral revenue receipts for the year In
creased $97 ,O32. 3S2. IS and customs re
ceipts increased 3,3ss.173.42, Miscel
lancous receipts. including those from
land sales, showed a decrease OF SIS,
e5l.&+S.S3.
'"rhe ordinary disbursements for tn
year were s72t.492. sss.9 90. being $3.50.
So. 30 less than for 1918. Disbursement
on account ~ the Panama Caual for thu
year. amounting to~fl7,5o3. 72S91. wer'
paid out OF the general fund. The tota
. amount Of disbursements on this accoun
for the three fiscal years ending Jun,
80. 1916. Is SSi.5l7.7l2.05. all OF whic'
has been paid from the general fun
and none OF which has been reimbursed
by the issue of bonds. The total amour
expended for the canal from the genera
fund to June 80. 1915. r~eimbursable iron
the proceeds of bonds not yet sold. !
&22S,Ili, 20o.lI.
For the Fiscal Year 1917.
The estimate OF receipts and dis
burscments for the fiscal year 1871
shows that although the current re
.,,. ,,it bo iny,fN,iant fnllv IN moe
80 .xnsnd;,ures ,here viii
"" No a surnin. in the renera
~ ,ho ascaI yea
.unu .,Ia .a- aah "a inc,udin
'o.um..n sn,,rs,nc oaicera' credI,
.,a, ~ NJ .,,m ronrosont. the est
-'ma, . .nns in ,ha Treas,ry .iune 2,
n",s 80 - oil currcnt ohlipations IN
. amom,, heinr availab bic for IN
Sr,,r. o~nend,,ures of the Goyernmen
.srL,s 10 unon the IA sis of maintainiu
uo ,roons unon tho Mexican horde
rn,i, necemher Al. 1915. and paying IN
cras should the troops he kept on III
border for the remainder or the nsc;
year 1917 II would be necessary 10 rem
burse the Treasury for Expenditures o
this account by the sale OF fahaih
bends or by additional revenue ies'sia
ton.
The estimate OF recelpts ana aisours'
ments for the fiscal year isis SHOWS ths
the existing laws VIII not proViue y"
hcient revenues to axe care OF tne W
usual expenses OF the government ou
for the most part. TO the large eNp'"u
lures required by the army ana nav! u
preparedness, estimated Tor that year !
$685. 1874. 900. respectfully urge upo
toe attention or the congress Inc hecaI
sity for passing such measures as W,
-Aa tn nnA III