The West Virginian. [volume] (Fairmont, W. Va.) 1914-1974, 1919-12-03
TREASURY HEAD
URGES ECONOMY.
Glass Tells Congress Gov
ernment Will Need Six
Billions in 1920.

tBy Associated Pressl
WASHINGTON, Dec. 3.-No appre-
cable reduction in taxes for the next
fiscal year is to be thou!ht OF, secre-
tary Glass declared in his annual re-
port sent today to Congress. Govern
ment receipts must be kept at their
present figure, he said, in order to
bring government borrowing to an
end
Facing expenditures estimated at
IS, 629, 1856, 1853 for the year ending June
80, 1920, and $4,473,696,35S for the
year ending June 30, 1921, the govern
ment must enforce rigid economy, Mr..
Glass declared. He placed the deficit
for the current year at $S,9O5, 900
and for the year ending June 80, 1921,
at approximately $2,005,000,OOO.
On this basis, Mr.. Glass urged Con-
gress to deny every appropriation for
expenditure in new fields He said
the same policy should obtain until the
government had its sinking fund well
under way and repayment Of the war
debt satisfactorily begun"
Mr.. Glass charged that excessive
EONCLHlAbSalg hGAV wv
most vital factors" in increasing the
cost Of living and 2rgued that it was
urgently necessary to keep down pub
lie expenses for this reason as well as
because of the drain on the taxpayers.
The present revenue laws need re-
vising to meet new conditions, he said.
He referred particularly to the excess
profit S tax laws which he described
as being Objectionable even as war
time expedient." 1t would be still more
Objectionable in peace time, he added.
LESS harmful FORMS" of deriving
funds TO r the government should be
employed, the secretary said, adding
that the excess profits tax had been
responsible for much Of the increase
in living costs because it had been
passed on to the consumer.
ut encouraged wasteful expendi-
lures, puts a premium on over capitali-
cation and a penalty on barins," the
secretary continued. ut discourages
new ventures and new enterprises and
establishes old ventures in their mo-
nopolies. In many instances, it acts
as consumption tax, Is added to the
cost Of production upon which profits
are cured, determining prices. 1t has
been and will, 80 long as 1t remains
on the statute books, continue to be a
material factor in the increased cost
of living"
In this connection, Mr.. Glass also
urged redrafting of the revenue laws
to prevent thSvdevasion Of federal
taxes through the investment Of
wealth in the obligations Of states
and municipalities. He said laws
+ should be enacted which would
compel the reporting of such in
comes, 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 taxes on the amount derived
from taxable sources.
| Relation between conditions in
| Europe 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 financial assistance, but
/ that the. situation had been much
exaggerated.
I'VE must all feel deep sympathy
for Europe today" he said, "bit 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 industries
cannot be reopened without raw
! stocks. Government financial assis-
lance in the past and talk of future
government or banking aid to finance
exports have apparently led our in
dustrtal concerns to the erroneous
expectation that their war profits,
based largely on exports, will contin-
re indefinitely without any risk on
their part. To them will fall the
profits Of exports and upon them will
/ fall the consequences Of failure To
make the exports."'
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