2. Classification by Purposes or Functions The primary distinctions exhibited in this classification are five: 1. War purposes; 2. civil purposes, (other than postal); 3. postal purposes; 4. general administrative purposes; 5. local government purposes. The secondary distinction in each of these primary divisions is the separation into "operation and maintenance expenses," contrasted with "construction and improvement outlays." These are the titles of the first two columns in the following detailed exhibit, while the third column represents the totals of the first two columns. These columns set forth important information which has not been available heretofore in governmental estimates or publications. This separation is fundamentally necessary if comparisons with previous or subsequent years are to be made, or correct ideas obtained concerning extravagance or economy in the expenditure of public money. TABLE II THE NATIONAL BUDGET Expenditures for the Fiscal Year 1914-15 "Estimates" of appropriations-classified by purposes or functions. (1) Operation and maintenance expenses of office building, rents, etc., are mainly included in item (1) in "general administrative purposes," because these expenses cannot be separated under present methods of bookkeeping. (1) This amount should be distributed in detail to the various departments and divisions. () Approximately one-half of this is offset by District of Columbia revenues. (*) Sinking-fund provisions are negligible; merely bookkeeping items having no actual existence. There are no securities and no cash in the so-called "sinking fund." () See also additional estimates under "permanent appropriations." () Including bureau of naturalization, $250,000. () These terms "annual" and "permanent" might be better stated "current" and "recurrent," as all appropriations are enacted annually by congress, even though the amount is not fixed, (indefinite) or the time is not fixed (indeterminate). 3. Classification of the Revenues For comparison with the two methods of expenditure estimates, a classification of revenues is exhibited (schedules I and II), which is self-explanatory. The primary division consists of special revenues and general revenues. The first is applicable only to special purposes under requirements of law, or to revenues which arise on account of various classes of expenditure. The second consists of revenues which are unrestricted either by requirements of law or of accounting and which are available for the general expenditures of the government under current appropriation acts. The exhibit herein sets forth the actual revenues for the last completed fiscal year (1913) as an illustration of a classification of the revenues by estimates for the new fiscal year 1915, or for some subsequent year. TABLE III REVENUES (ACTUAL) FOR THE FISCAL YEAR, 1912-1913 AS A BASIS FOR ESTIMATES OF REVENUE FOR 1914-15 (Excluding postal revenue, and receipts on public debt accounts) SPECIAL REVENUES (SCHEDULE 1): Viz: (a) Revenue reserved by law for special A Revenue of trust funds $12,085,561 District of Columbia revenues 8,070,369 3,585,271 Contributed moneys (rivers, harbors, etc.) 1,039,308 Navy fines, forfeitures, small stores, etc. 985,824 National forest fund 749,996 Philippine fund 308,986 Sales public lands, 2, 3 and 5% funds (states) 238,890 229,971 Alaska fund 205,907 Sales of ordnance material 202,432 National forest and hot springs reservation 95,250 Sales of timber, sites, products, etc. 16,788 6,748 $27,821,301 (*) In addition to this sum there are other receipts into 3 Immigration fund (head tax) Patent fees Consular and consular court fees Forest service ..$31,916,534 .$ 4,735,062 2,077,102 1,798,408 1,716,931 Customs fees, fines, penalties, etc. 1,590,355 Judicial fees, fines, penalties, etc. I,123,950 Fees, etc., land offices 547,000 |