The Bozeman courier. (Bozeman, Mont.) 1919-1954, 1923-05-30
CLOSING THEYEAR
WITH A SURPLUS

5 $1,000, 100000 less than it was when
the Harding administration took
charge of the government.
According to an estimate submit
ted by Secretary Mellon, the gov
eminent will close the fiscal year with
a surplus of $125, 900 900 This sur
plus is a real one, not a paper one.
These are the two outstanding facts
set forth in a recent letter issued by
Secretary Mellon to the banking and
financial interests of the United
States.
In order to fully appreciate what
a cash surplus at the end of this fis-
cal year means, it is necessary to re-
call conditions of a year ago. At a
business meeting" of the officials
of the various departments, bureaus
and commissions of the government,
held last July, it was estimated that
the deficit for the current fiscal year
would be $823,OOe,0O0.
AT the beginning of the fiscal year
of 1922, a few months after the Hard
ing administration assumed control
OF the government, it was estimated
the deficit for the ensuing year would
be very large. But due to the opera
ton of the budget law, the insroduc-
ton OF business methods in ali agen-
cles Of the government and the hear
test cooperation among all execu-
tive officials in carrying out a pro-
gram Of rigid economy, the fiscal
year closed with a surplus. For the
first time in the history of the United
States government practically every
department of the government turned
back into the treasury unexpended
money which had been appropriated
II by Congress for its use.
Encouraged and guided by this ex-
: perience of the first year of the ad-
: ministration, President Harding, Sec
rotary Mellon and their executive as
: soclates were not discouraged at the
beginning of this fiscal year by a
: prospective deficit of 1928, 600, 900.
Itrath er served as a stimulus to con-
e tlnue their program of cutting public
8 expenditures to the bone and saving
in every possible way consistent with
! good public service. By the first of
o the calendar year the administration
was able to announce that the pros
pective deficit had been reduced to
n $1OO,OOO,000 in round numbers. Now
comes the announcement that there
S will be no deficit, but instead there
4 will be a cash surplus.
rfhorpanra - Coo-L-- NH
r points out, this surplus will be in ex.
iStence after charging against the re
ceipts all possible legitimate expend
ltures, including expenditures for tn,
sinking fund and other public deb
l. requirements to the amount of $405,
100000.
Another very important factor ex
lists which was not mentioned by Sec
. rotary Mellon. That is the elimina
ton of the possibility of ~unreportet
deficits coming to the surface The
next session of the Congress, in tn,
form of deficiency appropriation bills
For the first time in the history o.
the United States government, thf
pernicious and illegal practice hal
been stopped. For that reason Tn,
surplus which Secretary Mellon as
sures the taxpayers will exist at tn,
end of June will be a real cash sur
plus that will not be wiped out late,
on by the appearance of belated bills
The positive announcement of Sec
rotary Mellon, whom everyone &C
knowledges to be most conservative,
in his figures at all times, that tn,
government will close the fiscal yea
with an actual surplus, is very dis
concerning to the Democratic party
They have predicted all along tina
this would not and could not be tn
case. During the congressional cam
paign last year Democratic part
publicity, Democratic speakers an
newspaper writer's of Democrat
faith, concocted the story that tn
claim of the Harding administrator
to an economical conduct Of the GOV
eminent was false and misleading
They offered in support of this fict
tious and sensational campaign ms
. terial an alleged analysis of publ
- LAAAoASNS AANCiiOA4S W ohOW Ih0O VI
administration was ~concealing a Il
of public expenditures which woul
result in the government closing tt
fiscal year with a tremendous defic
on hand.
Even as late as March of this yea
Representative Byrns, of Tennessee
and ranking Democratic member
the house committee on ~appropriI
tions, made a speech which appeart
in the Record in which he asserted Il
administration would incur an actu
deficit of over $500, 600 900 for IL
current fiscal year.
These predictions, like the Dem,
cratic predictions of the operation
the tariff, had no foundation in fac
and were put out either through il
norance of the fats by those wi
Amado tharn or for fho p,rx>oca of n