Evening Republican, Volume 19, Number 29, Rensselaer, Jasper County, 3 February 1915 — FEDERAL DEFICIT AGAIN THREATENED [ARTICLE]

FEDERAL DEFICIT AGAIN THREATENED

Cabinet Appalled at Shortage of Eighty Millions—Alternatives Are Considered. Washington, D. C.—A threatened federal deficit of .more than $80,000,000 during the present flseal year brought all available members of the cabinet and their assistants into conference with Secretory of the Treasury McAdoo today. The administration is permitted two alternatives to wipe out the deficit, the passage of additional revenue legislation or a marked cut in expenditures. Pending appropriation bills, which include all but one of the regular supply bills, were discussed at the conferenceThe government, deficit today is $70,758,975, as against $19,526,580 the same day last year The fiscal year ends June 30. At the present rate the deficit for the year would fbe $120,000,000. The next five months may prove to be better revenue producers, however. The deficit ds attributed to inaccurate estimates of the revenues to be derived from the income tax, similar mistakes respecting the revenue producing power of the war tax, the effect of the European war on imports, reckless appropriations by congress and increasing cost of governmental operations. kSecretary McAdoo realized the seriousness of the fiscal situation some time ago, and called Chairman Underwood, of the house ways and means committee, into conference to propose a new war tax. Underwood promptly balked at the suggestion of a neiw war tax measure on the ground that neither the house nor the country would stand for it. He promised to urge members of the lower house to eut appropriations, providing Secretary McAdoo would obtain a similar agreement with the senate. As an alternative to a mew war tax it is proposed that $240,000,000 of Panama bonds be sold- It is argued that the government has built the Panama canal largely from current revenues, when it was intended it should be built from the proceeds of bonds, and that the sale of bonds would now only replenish the general fund to offset what has been spent from itThe estimated deficit does not take into account the $40,000,000 carried by the pending ship purchase bill. This money would bfe made immediately available if the bill wee passed. The funds provided by other pending appropriation bills would fall on the next fisdar year. If the ship purchase bill is passed and the existing deficit continues ,to increase at the present rate the treasury may be found $160,000,000 behind on July 1.

E. W. Hickman, Who has been working at E. D. Rhoades & Son since last fall when he closed his own plumbing business, has resigned his position and expects to soon embark in business for himself, possibly locating at Hetbrorr,

H. R. Lange & Son, the piano dealers, have rented the White toom on Van Rensselaer street formerly occupied by John Knapp, and will move their piano, store therein ias soon as the room has been remodeled for their business. They are now occupying quarters in Collins’ Shoe Store in the Odd Fellows building, but find the quarters too small tor their busi. ness. A carload qf pianos are on the way and will be installed in the new location.

Ex-Governor Richard Yates, of Illinois/ has been named as correspondent in a suit for divorce filed by Edward R. Freeman, a photographer of Eureka, Cal. The action was brought Tuesday and sensational dispatches from San Francisco tell of the proceedings. Freeman charges that on a trip to the west Yates and Mrs. Freenian rode together and that she permitted him to hug and kiss her every time they went through a tunnel. That after Yates, whom he charges went under the assumed named of Seely, visited Mrs. Freeman in her room at a hotel. Mr. Yates says that all the allegations are false.