The Prince George's enquirer and southern Maryland advertiser. (Upper Marlborough, Md.) 1882-1925, 1919-08-08
REVENUES WILL
PAY 1920 DEBTS
Secretary Glass Says U. S. Ex-
penditures Will Not Exceed
Its Receipts.
RIGID ECONOMY IS NEEDED.
Public Debt on June 80, 1920, Will
Be $26, 6,516, 500, 160-No More Loans
Will Be FIoated-FavorabIe
Treasury Statement.

Washington.-In a letter to the
banks and trust companies of the
United States made public Sec :
tary of the Treasury Carter Glass
states that he anticipates the revenues
for the fiscal year ending June 30, 1920,
will meet all the expenditures of the
government
He fixes the national income, in
Guiding the deferred instalments of
the Victory Loan, at $6,5OO,O0O,O0
This means that there will be no net
increase in the public debt for the
year except the loan instalments. If
his calculations are correct they mean
that on June 80, 1920, when presum-
ably the entire cost of the war will
have been paid, the public debt of the
United States will be $26, 1916 5O6, 16O
During the next five months, the
period Of heaviest expenditures, the
government will meet it's obligations by
increasing the outstanding certificates
of indebtedness by not more than
$5OO,OOOOOO. The conclusion to be
drawn from the secretary's letter is
that there is not to be an early issue
of notes. The secretary says:
1t is not possible at this time, when
the appropriations for the coming
year are under consideration by the
Congress, when contract claims by and
against the United States are still in
process of settlement, when demobili-
zation is still incomplete, when the ex-
tent of the liability on the wheat
guaranty is ascertained, and when the
business upon which the income and
profits tax receipts in the first half of
the calendar year 1920 are to be based
is still only half transacted, to make a
formal estimate of the receipts and ex-
penditures of the United States during
the fiscal year 1920 lending June 80,
1920.
I do not hesitate to say, however,
that anticipate that the government
will be in receipt of revenues under
existing law and from the Victory Lib
erty Loan during the fiscal year 1920
to the amount of at least $4,000, ,OOO,-
600.
In the absence Of a budget system or
of any treasury control of govern
mental expenditure it is even more
difficult to foretell the expenditures
than the receipts of the government
Current expenditures, which reached
the maximum of $2O60,OO0,O00 in
December, 1918, fell in June, 1919, to
$500, 100000, and after deducting the
amount of the certificates of indebt,
edness of the director general Of rail.
roads paid during the present month
Of July, should show a still further
decrease in this month.
Allowing for all the elements of un.
certainty above referred to, have nc
present reason to believe that the eX
penditures of the government during
the fiscal year 1920, will exceed the
amount of it's receipts as above indi'
Gated, excluding transactions in the
principal Of the public debt other thar
the Victory Loan. If these eXpecta
tions prove to be correct, the gross
public debt of the United States, which
on June 80, 1919. amounted to S25,
sos, S,16005, should he increased during
the fiscal year 1920 by not more thar
the amount of the deferred instalments
of the Victory Liberty Loan payable
in the fiscal year 1920, $1,O32, 900 900
making a total public debt on June
80, 1920, when presumably the whole
cost of the war will have been financed
Of $26,516, ,5O6,160,05.
The realization of these sanguint
expectations is contingent upon the
practice of most rigid economy by tht
government and the continuance O.
ample revenues from taxation.