Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1919-09-30
REVENUES OF GOVERNMENT
FALL BEHIND EXPENSES
Dczfcit for Current Year Expected to
Be Not Less Than
So 2,5OO,OOO,OOO.
WILL SPEND $4,000, 900, 600
Country Has Word of Secretary Of
Treasury Glass That No Further
Popular Loans Will BE Needed
During Period of Reconstruction.
Ry J. FRED EssARY,

During Period of Reconstruction.
.5E BY J. FRED ESSARY.
IL .WASHINGToN. Sept. 29,-How Is the
with outstanding obligations upon II
of more than $4,000, 100000 and with
revenues in sight Of less than $780,
Z 00o. 900?
In round numbers this seems to be
the fiscal situation OF the government
at this time, and it is q situation that
Is giving the legislators in both houses
of Congress something TO think about,
even though the assurances continue
10 come from the Treasury that the
expenditures and the income during
the current year will about offset each
other.
The figures and the assurances.
however, do not coincide. and the feel
ing is growing that some eStraordi-
another bond issue--will have to be
resorted to in order TO meet the deficit
which now seems to members of the
Appropriations Committees of the
House and Senate to be inevitable.
Assurances by Glass.
The country has the word OF Secrc-
tary OF the Treasury Glass that no fur
Their popular loans will be needed in
order to finance the government during
the period OF reconstruction. This was
given at the time the Victory Liberty
loan was foated. and has been re-
iteratcd since. But it is by no means
certain thai further issue of securi
ties will be escaped. either in terms OF
Treasury certificates of Indebtedness
or longer-term bonds which the banks
will be called upon TO aosorb
The country's balance sheet as spread
before Congress by the Appropriations
Committeeman, for the current fiscal
year, shows that the financial require
ments which must be met by June 80.
1890. amount to s1o.S3l, .5S5. and
that the total income of the govern
ment which is now anticipated from
6
leaving a probable deficit of s3.591,237.-
345
Where this enormous sum of more
than three and half billions OF dol
lars is to come from Is the unanswered
question. Some OF il may be made up
through governmental economy. but
the several executive departments of
the government acquired the money
spending habit TO such an extent dur
ing the prodigal period of the war that
waste and extravaganza which a few
years ago would be regarded as crmi-
nal is now taken for granted.
The tax returns may be more gem
erous than Is now estimated. but the
receipts from taxation will not absorb
any great amount OF the deficit al
best The sale of surplus properties
which the government acquired and ac-
cumulated when IL was calcula ted that
the war would not end until this year
may give the country a pheasant sur
prise. but too much need not be hoped
for in that direction when such War
partment tonnes as the automobile
losses at Holabird are revealed
Expect $1,000. OOO.OOO Dencit.
II the figures which Chairman Good
has presented 10 the House showing
estimated revenues are to be taken at
face value, II IS difficult to see how
the government is to escape deficit
or some Girg like @3.oo0.oo0.o00 during
difficult to see how the Treasury is to
get along without borrowing more
money either by a popular loan or
loan from the banks. 1
Moreover, the status OF the railroad
legislation now pending seems to
promise large increase in the deficit
Both House and Senate leaders arc
doubtful Of their ability to pass the
railroad bills before the end of this
year. and If these measures are not
enacted 1t may be necessary for Con-
antecing the irAarest on the railroad
securities until the time arrives when
the owners OF these properties are to
receive them at the hands of the gov
ernnent
Then. too. there is another circum-
stance that needs 10 be kept in mind.
at the end OF the present fiscal year
unless Congress -Sics otherwise. which
might proye embarrassing to the gov
issue of certificates of Indebtedness
over until the Nis2l tax returns begin
II may not he easy for the average
citizen TO understand. now that the
war is over. tho army and navy are
being returned TO peace basis and
the general REIMBURSEMENT is underway,
how II Is that more than $4,000. 900 COO
are needed TO run the government from
July l, 1919, to June 30, 1890 |, may
not be enlightening to go into the de-
tails Of these authorized expenditures.
but few of the bigger figures might
be cited.
VI.
In the trst place. the regular annual
appropriations carried IN the rcGulu-
acts amount to s?.o35.l5l.733 series
for the railroads and totalling S1,1l2.
470.c3t. have been prov ided for. APP
prorriations in misceilareors acts. IL
cludinE 3l.ooo.co0.000 whcat-pricc guar
anty and amounting in all 70 sl.l23.
70e.436. have been made. Permanent
and indefinite appropriations. includm.;
$1,000. 600, 900 interest on the public
debt and 1864 oOO. 900 for REDEEM ption OF
the public debt amounting in all TO
s2,o74.2S6,Sso have to be included. ON
War Department, S5sl9s7.ooo addi-
tional loans TO our allies. and more
than S2.500.0o0,0 600 in outstanding Ger
tiicates Of Indebtedness to be provided
for.
To meet all the projected outlays the
government is able TO calculate on
$3.50 100000 revenue from income. cN-
cess profits and estate taxes; .26O.O oo.-
900 from customs receipts. $4,000. 900
from public lands and 5000 000. 600 from
war property sales. To be added to
this. which amounts TO s5.S02, NOo. 600,
may be added Sl,033,o0o0o0 from the
Victory liberty loan and sAOi.H2S.@+O
from postal receipts. or grand total
of money available Of sT.23s,92s,2 30.
More encouraging figures. il is true.
may be presented 10 the House and
Senate by Secretary Glass when he pre-
pares his estimates for the regular
session of Congress In December. But
) in the absence OF a Fedora! budget
system. the Secrntary's program mus.
necessarily be more or less indefinite.
even though IL makes good on his ear
IS lier claim that no further popular louus
will be necessary.