Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1920-01-12
NATIONAL BUDGET
SYSTEM URGED AS
!, j. 5. NECESSITY
Senator MediII Mccormick
Presents Startling Array Of
Facts and Figures Regard
ing Federal Expenses.


ESPECIAL CORRESPONDENTS TO MORNING JOURNAL
Washington, Jan. 11-When the sem
ate select committee on the budget re-
sumes its hearings on the Mccormick
budget bill Monday, the upper cham
Der Of congress will have presented
TO it for serious reflection, startling
figures showing the vital need of a
budgetary reform in the adminstra-
ton of the nations fiscal affairs.
The annual report of the secretary
Of the treasury for the fiscal year end
ing June 80, 1920, shows that the
gross public debt of the government
on the last day of the past fiscal year
amounted to S25,4S4,5 100, 1905. If ex-
pectatons from the secretary of the
treasury prove correct TINS debt should
be increased during the present fiscal
year by not more than the amount Of
the deferred installments of the Vic
tory Liberty loan, payable during this
fiscal year. This amounts to about
$l,032 100000 making a total public
debt Of $26, 5l6506, 1905.
During the war period, according
10 the secretary of the treasury's re-
port, excess disbursements over re-
ceipts amounted to $24,132, $40, 1872 Sc,
the total gross debt of the government
increasing to $24,92S, 56l,5T3.6l be-
tween April 5, 1917. the day before
we entered the world war and october
81, 1919.
The present heavy public debt Of
the United States government is in
sharp contrast To- the STATE Of national
finance during the years preceding the
world war, when the treasury was
never seriously threatened with a
large deficit. For every fiscal year
from 1866 to 1893, inclusive, there
was a surplus of recaipts over eXpen-
ditures the to,al surplus for this
period of twenty-eight years amount
lug to $3.50. 2b5,0l3,4l,
Times OF Paying off.
From 1894 until 1893, inclusive, eX-
penditures exceeded receipts in the ag-
gregate of $2S3,022,99ll4, while for
dhe fiscal years of 1900 to 1904, in
elusive, receipts were in excess Of eX-
penditures by the sum of 3I0,3l9,-
1864.
In 1905 expenditures again exceed
ed receipts. At the end of this fiscal
year there was a deficit of receipts
amounting to $1S,753,335. There was
no recurrence of losses in 1908 and
1909 when expenditures amounted to
SIS, 7T6,62230 more than receipts.
The years of 1910 TO 1914, inclusive,
were prosperous again, the net re-
ceipts being $l49,024,404.27 more than
expenditures. In 1915 expenditures
Uutweighed receipts by $S3,4S8,S3L5S
but in 1916 receipts exceeded eXpen-
ditures by $55,I71,553.57. The year
of 1917 saw a deficit of $29,724, S64.73
which, with the war has scared an
nually until today expenditures are
,l,i1ious more than rpCpiDtS
only in eleven fiscal years from the
close Of The civil war until our entry
into the world war did expenditures
exceed receipts. These years were
were 1894, 1895, 1896, 1897, 1898,
1899, 1905. 1908, 1903, 1915 and
1917, the total amount that eXpendi-
lures exceeded, receipts for these
years being SAB, 766,744.70.
During the same period of fifty |
two years, from 1856 to 1918, receipts |
exceeded expenditures in forty-One |
years, the total of the excess of re- |
ceipts over expenditures amounting to I
S2,591,453,1S9.16 Up until 1910 fed !
eral revenue was raised entirely by |
indirect taxation.
1T is set forth by opponents of the |
budget system that congress can save
anywhere from one billion to two bill
ion dollars annually in the admins !
tration of national finances through |
the use of the budget system and pay
up the great public debt of the gov
eminent within the next decade.
Senator Medill Mccormick, author of
the bill upon which the select com
mittee of which he is the chairman,
will resume hearings believes that the
main provisions of his bill will set up
al the beginning of the next fiscal year
a budget system such as is desired.
True Fiscal Officer.
The Mccormick bill plans to make
The secretary of the treasury a true
fiscal officer by giving him power to
collect, revise or reduce and correlate
the annual departmental estimates of
expenditure. 1t would enable him to
perform this duty adequately by di-
from the treasury depart
1nent most of its non-fiscal activities
The bill differs principally from the
measure passed late in October by the
house in the respect that the house
- II