Jasper County Democrat, Volume 8, Number 11, Rensselaer, Jasper County, 17 June 1905 — TREASURY SHORTAGE [ARTICLE]

TREASURY SHORTAGE

What Republicans Must Face When Congress Convenes. TRUSTS 0B PEOPLE MUST SUITES Tariff Rcrliian, More Taxes or a Bond line Xeceuarr to Meet Deßett—Dilemma In Which Kxtravagaat, Appropriation* Haa Placed the Party la Power. The growing deficit In the national treasury reached on May 17 the enormous sum of $30,753,556 and increasing so the deficiency for this mouth to the same date Is $3,063,900. Last year about this time Secretary Shaw professed to be tolerably certain there would be no deficit or at least but a small one, but bis prognostications have proved so often erroneous that, like the predictions of the weather bureau, any old weather wise sailor Is more accurate. The Republicans have boasted so much about their business management of our financial affairs and their ability to meet any emergency that may arise that It will be interesting to watch how they propose to overcome this difficulty. At present they are debating among themselves who Is to Buffer for their extravagance and favoritism. Primarily the deficit must be charged to tariff protection, the rates of duty being so high that many schedules produce no revenue aud others a large decrease. But there Is also the serious charge of extravagant appropriations to be met by the Republicans. Knowing the public Income was falling off, they have still continued to increase appropriations until what was in 1896 less than $300,000,000 is now over $500,000,000, without figuring the cost of the postal service. The most shallow business mind knows that expenditures cannot exceed income unless the Income is increased by borrowing or drawing on savings. The latter Is what Uncle Sam has been doing, but he Is now near the end of his string. He must either economize or borrow or Increase the taxes. There are two ways of Increasing taxationfirst, by imposing more Internal revenue taxes, or by reducing duties on goods that compete with trust made products and so increase foreign Importations. And the duty paid on this -increase would replenish the fund In the treasury. This Is the financial Issue that the Republicans face and must meet when congress convenes. The Democrats have warned them every session that this would soon be the result, that high protection and extravagance would not go hand in hand for long without disaster.