APPROPRIATIONS OF FIRST SESSION, FIFTY-NINTH Statement of Hon. James A. Tawney, of Minnesota, Chairman of the Appropriations Committee in the House of Representatives, Saturday, June 30, 1906. The House having under consideration the bill (H. R. 20511) making appropriations for certain public buildings authorized by the act approved June 30, 1906, and for other purposes Mr. Tawney said: Mr. Speaker: With the passage of this bill the first session of the Fifty-ninth Congress will practically close. Viewed from any legislative standpoint, whether in the enactment of important, wise, and beneficial laws, or the careful and economical appropriation of public funds for the public service, or in the aggregate number of public and private acts, it surpasses any preceding session of Congress since the adoption of the Constitution. It is doubtful if ever in the history of the Republic we have had a session of Congress that responded more promptly, more efficiently, and more fully to the legislative needs of the people, as expressed through public opinion, than the first session of the Fifty-ninth Congress has done. Next to the duty of enacting laws for the collection of governmental revenues, there is no duty devolving upon Congress that is comparable with that of appropriating and distributing these revenues for the purpose of defraying governmental expenses. Therefore, in order that the country may know how faithfully this duty has been performed, it has long since been the established custom at the end of each session to review the work of Congress in respect to appropriations, and also to compare the same with the appropriations of previous years, together with the estimated revenues for the fiscal year for which the appropriations are made. Comparison of Appropriations. The expenditures of the Government authorized by appropriations made during the first session of the Fifty-ninth Congress, include: Sums carried in the regular annual supply bills, $672,987,734.70; Permanent appropriations made by laws enacted by previous Congresses and for which subsequent Congresses are not responsible, except in so far as acquiescence in their existence creates responsibility therefor, $140,076,320; Deficiencies, which cover expenditures for the current and prior fiscal years, on account of inadequate appropriations by previous Congresses, or made necessary by unbusinesslike methods of administration, $39,119,246.62; and Miscellaneous appropriations in special acts carrying sums of money outside of amounts in the regular appropriation acts, estimated at $28,000,000; making a grand total of $880,183,301.32. To ascertain the amount of the last-named sum appropriated for the conduct of the Government during the fiscal year beginning July 1, 1906, to be met out of the revenues collected that year, the following deductions must be made: From the regular annual appropriations the sum of $25,456,415 for construction of the Isthmian Canal, which sum will be paid from or reimbursed to the general Treasury out of the proceeds of the sale of bonds authorized by the original canal act of 1902, to be issued for that purpose. From permanent annual appropriations $57,000,000, which is the sum of the statutory maximum annual requirements of the sinking fund payable in the discretion of the Secretary of the Treasury from surplus revenues, and the further sum of $22.000,000 for redemption of national-bank notes out of deposits by banks for that purpose; in all, $79,000,000. From deficiencies all amounts, except those expressly providing for service of the Government during the fiscal year 1907, aggregating about $35,000,000. The total of the sums mentioned, amounting to $139,456,415, deducted from the total apparent appropriations leaves an aggre A gate sum for all purposes, including the postal service for 1907, of $740,726,886.32. The ordinary revenues of the Government from customs, internal revenue, and miscellaneous sources for the fiscal year 1906 amount to nearly $595,000,000, a gain of more than $51,000,000 over the like revenues for 1905. This satisfactory growth of our revenues for the year just closed over the revenues of the preceding year is not only indicative of the industrial and commercial prosperity of the nation, but gives assurance, if these conditions are not disturbed by agitation or other causes, of such continued increase as to make it practically certain we will have a total of not less than $600,000,000 of ordinary revenues for 1907, which added to the estimated postal revenues will produce a grand total of revenue of $781,573,364, or a surplus of $40,846,477.68 over the total expenditures for 1907 authorized by the appropriations of this session. This surplus will be available, in the discretion of the Secretary of the Treasury, for application to the sinking fund, together with a considerable further sum that will arise in the nature of excess of appropriations over actual expenditures. This difference between total appropriations and total expenditures varies, one year with another, in sums equal to not less than 2 per cent., and in some years to as much as 5 per cent. of all of the annual appropriations. Regular Annual Appropriations. The appropriations for the regular annual expenses of the Government are made in twelve separate acts, and in comparison with the appropriations for the fiscal year 1906 they show increases for the fiscal year 1907 as follows: The Agricultural bill appropriates $9,932,940, being an increase of $3,050,250 over the act for 1906; this apparent large excess is chiefly on account of the requirements for inspection of packing-house products. The Army appropriation act carries $71,817,165.08, being an increase of $1,420,533.44 over 1906. The Army is now maintained at substantially its minimum strength under the law, and the moderate increase which is indicated will doubtless avert deficiencies that otherwise would have to be provided for at the next session. The Diplomatic and Consular appropriation act carries $3,091,094.17, an increase of $968,046.45. During the present session of Congress a carefully prepared law has been passed, on the recommendation of Secretary of State Root, radically reorganizing our entire consular service in the direction of applying business methods to the promotion of our commercial interests with other countries. The District of Columbia appropriation act appropriates for 1907 $10,138,692.16, an increase of $337,494.54 over 1906. This act provides for the entire governmental expenses of the Federal District within which is located the capital city of Washington. The expenses covered by this act includes what in the States would constitute Federal, State, county, and municipal expenses. The legislative, executive, and judicial appropriation act carries for 1907 $29,741,019.30, being an increase of $604,267.24 over 1906. This act carries the appropriation for the entire expenses of Congress, the Executive Departments at Washington, and for the judiciary. The principal increases included in the total apparent excess of 1907 over 1906 are as follows: For expenses of collecting internal revenue, $85,000; for skilled services in the Supervising Architect's Office, previously paid from public building appropriations, $72,460; for salaries, office of Public Health and Marine-Hospital Service, previously paid from permanent appropriations, $41,380; for salaries of clerical force in certain bureaus of the War Department, previously paid from general appropriations, $141,920; for temporary force for reproducing records for the land office at San Francisco, $60,000; and additional clerical force for the Patent Office, $66,480. The Military Academy act appropriates for 1907 $1,664,707.67, an increase of $990,994.29 over the appropriations for 1906, all of which sum is substantially for reconstruction of this educational institution, The Naval appropriation act carries $102,071,651.27 for the fiscal year 1907, and shows an increase of $1,734,970.33. This branch of the military side of our Government has been showing considerable increase year by year since the work of rehabilitating the Navy began more than twenty years ago. The action of Congress at this session with reference to the proposed great battleship indicates that the maximum has at least been reached, and that without considerable future increase in actual expenses the country may feel assured we have a Navy equal to any emergency and sufficiently powerful to maintain the prestige of the United States among the nations of the world. The Pension appropriation act appropriates $140,245,500, an increase of $1,995,400 over the appropriations carried in the pension act for 1906, as required to meet the obligations of the pension laws as they actually exist. It is proper in this connection to call especial attention to the fact that the Pension appropriation act enacts into permanent law the following provision: That the age of 62 years and over shall be considered a permanent specific disability within the meaning of the pension laws. The effect of this will be to exempt all old soldiers from the necessity of undergoing the expense of medical examinations for increase of pensions on account of increased age The Post-Office appropriation act appropriates for 1907 $191,695,998.75, an increase of $10,673,905 over 1906. The postal service represents what is essentially the purely business side of our Government, and to the extent that the country is prosperous the service grows; its expenses are substantially borne by the revenue which it produces. Of the total increase for the postal service, $3,030,000 is on account of free rural delivery. The Sundry Civil appropriation act carries for 1907 $98,274,574.32, or an apparent increase of $31,461,123.66 over the total sum carried by the act for 1906. The Sundry Civil is the one appropriation act of the whole list with which it is not possible to make an intelligent comparison, because of the fact that it is made the vehicle to carry all expenses of the Government not directly belonging to some one of the other eleven regular appropriation bills. It provides for the things that arise in one year and are consummated and disappear from our national expense account. For instance, of the total apparent increase for this year over the last fiscal year, $25,456,415.08 is for the Panama Canal, an item of expense that has never before appeared in any Sundry Civil appropriation act. The act for 1907 also carries for continuing work on rivers and harbors throughout the country, authorized by the River and Harbor act passed at the last session and in acts passed at previous sessions of Congress, amounting to $17,318,976.14, or an increase of $6,774,844.14 over the appropriations for the like purposes for the fiscal year 1906, the two amounts mentioned more than offsetting the whole apparent excess of the act for 1907 over 1906, notwithstanding increases were made of $289,185 for the National Soldiers' Home, $75,000 for aid to State Soldiers' Homes, and $150,000 for pay and bounty of soldiers of the Civil War and the war with Spain. For printing and binding for all of the Departments of the Government the annual appropriation is reduced in the aggregate $90,000 for the fiscal year 1907. This satisfactory reduction in a most important branch of the public service is made possible because of legislation passed at this session of Congress and improvements and reforms in administration instituted by the present incumbent of the Government Printing Office. Sinking Fund. The amount authorized by a law enacted February 25, 1862, to be applied annually to the sinking fund out of customs revenues is 1 per cent. of the entire debt of the United States, together with a further sum equal to the interest on all bonds belonging to the sinking fund, and, as stated, is estimated at $57,000,000 for the fiscal year 1907. The total debt of the United States, less cash in the Treasury, has been reduced since August 31, 1865, when it reached its greatest sum, $2,756,431,571.43, to $981,954,692.84 on the 1st of June of this year, the actual reduction being $1,774,476,878.59, or $106,855,947.61 in excess of statutory requirements of the sinking fund, the excess redemptions having been made under a law first enacted in 1881, authorizing the purchase or redemption of bonds in addition to sinking-fund requirements, out of any surplus money in the Treasury. It is not uninteresting to mention here that the total reduction of the public debt during the eight years of Democratic Administration of Mr. Cleveland amounted to $341,448,449.20, all of which was during his first term, when the fiscal policy of the Government was that of the Republican Party, and that additional bonds were issued during the last four years of that unhappy period, ostensibly for the purpose of maintaining the gold standard, but in fact to raise money with which to meet the current expenses of the Government, amounting to $262,155,956.77, thus making a net reduction of only $79,292,492.43 in the national debt during the whole period of eight years of Democratic Administration since the close of the Civil War. In contrast with this record it is shown that during the nine fiscal years (1897-1905) of administration of the Government under William McKinley and Theodore Roosevelt the national indebtedness has been reduced by the application of $241,325,081.29 to the sinking fund, and, in addition, $50,000,000 has been paid for the right of way of the Panama Canal, $10,000,000 of the original appropriation has been expended toward construction, and $42,447,201.08 more has been appropriated at this session toward that greatest of all public works, without the necessity of issuing the bonds authorized by law to raise funds for its construction. Estimates and Appropriations. The estimates submitted to Congress by the Executive Departments at the beginning of this session in the Book of Estimates for 1907 amounted to $804,296,415.47; subsequently, in supplemental estimates for the fiscal year 1907, other amounts were recommended aggregating $30,000,000, while for deficiency estimates there were considered sums aggregating not less than $46,500,000. Appropriations made during this session for which no corresponding estimates were submitted, and which were made necessary chiefly by legislation enacted during the session, include $10,250,000 carried in the Statehood act, $1,000,000 for arming and equipping the militia, $2,500,000 on account of the earthquake and fire at San Francisco, $3,000,000 on account of meat inspection, $500,000 on account of the new quarantine law, $10,321,600 on account of public buildings, and other less conspicuous sums, aggregating in all about $31,000,000. Deducting this amount from the total appropriations of the session, namely, $880,083,301.32, and comparing the balance of the aggregate appropriations of the session with the total estimates, it is shown that Congress has appropriated for the public service nearly $32,000,000 less than the estimates submitted by the Executive Departments for the public service for the fiscal year 1907. So large a reduction in the estimates submitted to Congress indicates either extravagance in administration or careless consideration of the requisitions made upon Congress for appropriations. The latter is the fault most likely to exist, and entails upon the committees of Congress much, if not the greater part, of the labor they have to perform in considering and formulating appropriation bills, in order that they may determine the amounts necessary for a wise and proper administration of government, as distinguished from those which are based upon extravagance and the self-interest of subordinate and irresponsible officials or the desire of others to magnify and enlarge the importance of bureaus and divisions over which they preside. Deficiencies. The Urgent Deficiency and General Deficiency appropriation acts, in no sense belongs in the category of deficiencies, in that it is not an annual appropriation, but is for a specific object or public work without reference to the limitations of fiscal years, and is reimbursable to the Treasury out of proceeds of bonds authorized to be sold for that purpose. Also there should be deducted sums not appropriated for indebtedness incurred for 1906, such as judgments and audited accounts; amounts for restoration of public buildings in San Francisco and replacement of military stores destroyed in that city by earthquake and fire; $3,000,000 for expenses of collecting customs during the fiscal year 1907 to meet an insufficiency in the permanent annual appropriations of $5,500,000 made for this object in an act passed in 1871, when our total customs receipts amounted to $206,000,000 against more than $300,000,000 collected during the current fiscal year 1906, the whole aggregating a sum indicating that not more than the sum of $8,500,000 of the whole $39,119,246.62 was for actual deficiencies in appropriations for conduct of the Government during 1906. And in this sum there is included for payment of pensions $3,500,000, or nearly one-half of the whole amount. as Prior to the Fifty-eighth Congress deficiencies in appropriations made for the public service had become so common and had increased to such an extent that that Congress deemed it essential to enact legislation to prevent such deficiencies. Theretofore many of the Executive Departments proceeded on the theory that they, and not Congress, should fix the standard of public expenditure, and if the amount appropriated for the service under their jurisdiction was not in their judgment adequate, they proceeded to expend the appropriation upon the basis of their estimates and then at the next session of Congress would submit deficiency estimates which, if not allowed, would necessitate the suspension of the service. It was this practice which prompted a distinguished Cabinet officer during this session to state before the Committee on Appropriations that this policy was the policy of coercive appropriations and should be stopped. In view of these increasing deficiency estimates the chairman of the Committee on Appropriations, the Hon. James A. Hemenway, now serving in the United States Senate, reported in one of the general appropriation bills at the last session of the Fifty-eighth Congress a provision requiring the heads of the Departments at the beginning of each fiscal year to apportion appropriations, by monthly allotment, or otherwise, so as to prevent a deficiency, and that such apportionment when made could not be waived except by the head of the department. The waiver was required to be in writing, stating the reasons therefor. At the beginning of this session, when the deficiency estimates were presented, it was discovered that this act was defective in that it did not restrict the waiver of the apportionment beyond the giving of a reason. This enabled the head of the Department to waive the apportionment for any reason, and proceed to expend the appropriation regardless of whether such expenditure would create a deficiency or not. In some instances it was stated as a reason for waiving the apportionment that Congress had failed to appropriate the amount estimated by the Department to be necessary for a specific service, and the amount appropriated for the entire year having been practically all expended at the end of the third quarter, Congress was obliged to appropriate the remaining quarter or suspend the service. To correct this, and to prevent the Departments from determining how much should be expended for the public service regardless of the amount appropriated, the first appropriation bill reported at this session of Congress amended this so-called antideficiency law by expressly providing that the apportionment, when made, shall not be waived except upon the happening of some emergency or unusual circumstance which could not be reasonably anticipated at the time of making the apportionment. While the law as it was enacted by the Fifty-eighth Congress had a very salutary effect in preventing deficiencies, as it enabled this Congress to reject many deficiencies that otherwise might have been appropriated for, nevertheless it is believed that this law as amended at this session will practically wipe out all de |