The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1922-09-20
ECONOMY IS
WATCHWORD
OF us. NOW
Harding's Disclosure Of
Big Deficit Makes
Brakes Needful.
BY DAVID LAWRENCE.

Washington, D. c., Sept 2U.-En-
tirely apart from the fact that
President Harding vetoed the bo-
nus bill, a profound impression has
been made by the official disclosure
that q deficit OF $650,000.00e faces
the country for the fiscal year
which began last July and ends
June 30, the next
Government experts went over
the estimated expenditures care
fully and submitted detailed figures
to the president before he wrote
his message, but were unable to
promise any better showing Of gov
ernment finances. This means in a
nutshell that congress cannot af-
ford to authorize the expenditure
Of any more money and even the
pension bills and river and harbor
proposals which are pending are
likely to be vetoed if they are put
up to Mr.. Harding. In other words,
the brakes must be put on to keep
the deficit from growing and the
departments will be required tC
economic still farther in an effort
to cut down the deficit itself.
Bad for Campaign.
Most uncomfortable too is the
necessity of acknowledging a def
.icit OF $650,000,000 at time when
the campaign orators would have
found it SO effective to refer to the
splendid work done in balancing
the budget for the fiscal year which
ended in June, 1922. AS a matter
Of fact the government did finance
itself we'll and balanced the bulge,
when it had appeared that there
would be a deficit of from twenty
five to one hundred million dollars
No such promises of reduction o.
the deficit can be made this tint
unless revenues are derived from
unexpected sources. The most thai
can be hoped for is a reduction Of
the deficit from about $3.50, 900 ,00t
to about half that sum, and ever
this is by no means certain.
Blame Taxation Cuts.
The deficit arises largely from
the fact that congress reduced tn,
receipts from taxation through tn.
new revenue law and there was al
unlocked for shrinkage in tax re
ceipts due to the business depres
sion. Congress can hardly in
crease taxes now so the alterna
tive is reduction of expenditure
But even this is easier said thai
done for on the veterans bureau
alone s530,00O, 900 will be spen
this year or more than half of wha
used to be expended in pre-wa,
days for Uncle Sans entire budg
ct. There is no telling how mucl
greater than $530.000,000 the ex
penses for disabled veterans ant
vocational training will run, bu
the governments policy is to spar
no money in that direction.
May Sell K. Il. Securities.
In order to cut the $3.50, 900 ,00'
deficit down somewhat it is likel,
that the government will sell SOM
of the railroad securities which j
took from the railroads during gov
eminent operation when variou
sums were lent them for equip
ment. Probably $100, 100000 ma,
be realized this way. Approximate
ly $125, 100000 in interest payment
from Great Britain have alread,
been put in the estimated receipt
! for this fiscal year so if there is
default, the deficit would be in
creased. If France or some othe
allied countries could pay. interes
some progress would be made il
cutting the deficit but the most op
timistic prediction today is tina
with all sorts of economies and re
striction of expenditure the $3.50,
100000 will only be cut in hall
All this is on the supposition tha
congress will not spend any NOR
money and that of course it will
not overturn the presidents vet
of the bonus bill. Should the sen
ate follow the policy Of the hous
and override the veto, a contin
gency not looked for at all by tn
president or the treasury depart
ment, all his predictions would g
by the board. Treasury official
say the overriding of the veto i
absolutely inconceivable and woul
be a calamity.
l