The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-07-10
OFFSETS CUTS WARS
BILLS TO 1S BILLIONS
Continued from FIRST Page.

Of investment buying. which give reason
for the hope, with the continuance OF
favorable general conditions. there will
be consistent appreciation in the mar
ket prices Of these bonds.
II do not think II will be wise to make
any further issues of long term bonds be-
fore the maturity or redemption OF the
Victory notes. when they will have been
such an interval In Government offerings
OF all kinds as must inevitably result In
marked Improvement OF the market
prices OF the existing issues. with corre-
spending decreases In the interest bases
at which they are selling and consequent
assurance that the Government will be
able to finance itself for a longer period
upon better terms.
1T Is not possible at this time. when
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 set
Element. when disqualification Is still in
complete, when t:le extent OF the Ma
bility on the wheat guaranty Is unascer-
tanned. and when the business upon
which the income aud profits tax re-
ceipts In the first half OF the calendar
year 1899 are to be based is still only
half transacted, TO make a. formal esti-
mate of the receipts and expenditures
year 1890. But so large a part OF the
war expenditures has bean paid or pro-
vided for ont of taxes and the issue OF
bonds or notes already sold, and 80
small a part is unfundeG,. that con-
fidently expect the Government Will
be able not only to meet it's further tern
porary requirements for the decreasing
scale OF expenditure By the sale Of treas
ury certificates OF indebtedness bearing
less. but also TO fund as many Of these
as II may be desirable TO fupd. by the
issue of short term notes in moderate
amounts, at convenient intervals, when
market conditions are favoyabls, and
upon terms advantageous TO the Govern
ment.
1T will not be desirable to fund all
the certificates of Indebtedness! for the
issue OF certificates Of Indebtedness In
anticipation OF income and prohts tax IN
stallments not only furnishes means OF
financing the requirements OF the Gov
eminent temporarily upon easy terms,
but constitutes an almost necessary
financial expedient, to enable the tax
payer to save and TO prepare gradually
for the great tax payments and TO re-
iieve the banking machinery OF the coun-
try OF the great strain which would DO
imposed upon II II these tax instsllments
had to be paid on a single day without
such preparation.
"I need scarcely say to you that the
realization of these .sanguine eXpecta-
tons 10 contingent upon the practice or
the most rigid economy by the Gov
eminent and the continuance OF ample
revenues from taxation. Such course.
accompanied by the practice OF sober
economy and wise investment by our
people and strict avoidance Of waste and
speculation. will make Il possible for
the American people to respond to the
demands to be made upon them privately
for capital and credit by the nations
and peoples OF Europe-demands which
are reinforced by the strongest and most
vital ties OF sympathy for the Allies. who
fought and wor the war with us, as well
ss by the most obvious dictates Of self
interest.
1T has seemed to me only proper at
the end OF the last fiscal year of the
war period to lay these facts and opin-
ions before the Committee on Ways and
Means and the Finance Committee,
which bear so large measure OF re-
Spousibility for the war loan legislation
and to make them public also. since
they vitality concern the millions OF
Americans whose purchases OF Govern
ment securities and tax payments made
Presents -Four Graphic Charts.
In his letter TO the two chairmen Sec
rotary Glass presented four graphic
charts showing:
!. Preliminary financial statement for
the Government for the period April 6.
1917. to June 30, 1919.
>. Preliminary statement on the public
debt, June so. 1919.
3. Statement showing classified re-
ceipts, exclusive OF the principal OF the
public debt, by months for the same
period.
I. Statement showing classified dis
bursements, exclusive of the principal OF
the public debt, for the same period.
The charts show that Government ex-
penditures for the month OF June, Just
passed, were In round figures $so9, 0oo,-
600. or less than for any month since
September. 1917. Disbursements are
falling off rapidly, but II will be several
months before they reach normal
Disbursements for the nscal year
ended June 80 we're lS.5I4,oo0,o 900, tns
a. -