Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-12-03
congress ADVISED
TODEnY CASH FOR
ANY NENFIELDS
Secretary Glass Suggests
Economic Policy to FaciI!-
tate War Debt Repayment.

tale war DeDl Repayment.
Congress is advised to deny every
appropriation for expenditure in new
fields in the annual report of Sec
rotary Glass; of the Treasury Depart
ment, made public today. and he sug-
gests the same policy should continue
until the government has it's sinking
fund well under way and repayment
of the war debt satisfactorily begun.
The Secretary says that no APP
preCiable reduction of taveS in the
next fiscal year is to he thought of,
as government receipts must be Kept
AT their present figure in order to
bring government borrowing to an
end.
Urges Rigid Economy.
Facing expenditures estimated at
SJ.629. 4S6,359 for the year ending June
80. 1920, and S4.473 .G96.35S for the
year ending June 50, 1921. the gov
eminent must enforce rigid economy,
Mr.. Glass declared. He placed the
deficit for the current year at 3d.
9G5,0oo.000 and for the year ending
June 80. 1921, at approximately So
005, 100000
Mr.. Glass charged that excessive
government expenditures were the
most vital factors" in increasing the
was urgently necessary to keep down
public expenses for this reason as
We'll as because of the drain on the
taxpayers.
Revenue Law Revision.
The present revenue laws need re-
vising to meet new conditions he
said. He referred particularly to the
excess profits tax laws. which he de-
scribed as being objectionable. even
as a wartime eXpedent." 1t would
he still more Objectionable in peace
time. he added. Less harmful forms"
OF deriving funds for the government
should be employed, the Secretary
said. adding that the excess profits
TAX had been responsible for much
or the increase in living costs be-
cause it had been passed on to the
consumer.
Increased Living Costs.
TT encourages wasteful expendi-
lures. puts a premium on overcapi-
talization and penalty on brains
the Secretary continued.
1t discourages new ventures and
new enterprises and establishes old
ventures in their monopolies In
many instances it acts as a consump-
ton tax, is added to the cost of pro-
duotion. upon which profits are fig
ured. determining prices. 1t has been
and will, so long as it remains on the
statute books. continue to be a ma
terial factor in the increased cost of
living"
In this connection Mr.. Glass also
urged redrafting of the revenue laws
to prevent the evasion of federal
taxes through the investment of
wealth in the obligations of states
should be enacted which would COM
pei the reporting of such incomes,
although they are wholly tax exempt.
and that that sum, with other income
of an Individual. should be computed
as the basis for assessing federal
taxable sources.
Relations With Europe.
Relations between conditions in Eu-
rope and those in the United States
were discussed also by Mr.. Glass.
He said that undoubtedly there was a
very great need in Europe for finan-
cial assistance. but that the situation
had been much exaggerated.
I'VE must all feel deep sympathy
for Europe today" he said. but we
must not allow our sympathy to warp
our judgment and by exaggerating
European financial needs make them
more difficult to fill. The
problem of financing Europe belongs
largely to the exporter, because in
dustries cannot be reopened without
raw stocks. Government financial as
sistarce in the past and talk of fu-
ture government or banking aid to
finance exports have apparently led
neous expectation that their war
profits. based largely on exports, will
continue indefinitely without any
risk on their part. To them will fall
rhe profits of exports. and upon them
will fall the consequences of failure
to make the exports"
Treasury to Continue Policy.
The Treasury will continue it's poll
cy in effect since the armistice, to
TO init fi1-a nd
governmental control and interference
with respect to the nations foreign
trade, Mr.. Glass said. Only through
this means, he argued. could a
healthy economic life be gained" He
added that removal of any influence
bv the government should provide the
incentive for American commerce to
20 into the world markets and estab-
lish itself Ratification of the peace
treaty will measurably stimulate ex-
port trade. Mr. Glass declared be-
cause operation of the pact would
eliminate numerous political risks and
provide surer investment basis.
Red Tape Justified.
Closely related to any activities of
the government in foreign trade is
the subject of Incorporated govern
mant agencies. withdrawal of which
Mr. Glass strongly urged.
He said their manifest weaknesses"
were proof sufficient that such ar
rangements were not happy ones for
the government nor for the persons
charged with administration of the
corporations While not saying that
any Of the agencies created during
the emergencies Of war had been
guilty of wastefulness, Mr. Glass
pointed out that there was no objec-
tive. such as business profits. to hold
expenditures down. On the other hand
officers managing the agencies operate
I'll oh, &c.
accountability or check and always
have access TO more funds if a real
need exists. Cases where government
funds are employed semi-independent