Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1919-12-03
Secretary of Treasury Glass
Sees No Hope for Cut
ting Expenses.
CALLS PROFITS TAX
statute VICIOUS
Declares New Law Encourages Waste
and Puts Premium on overoaPitali-
zation - Declares Need Of European
Nations For Financial Aid Has Been
Exaggerated - Opposes New un.
dertakinss by Government

w
reduction In taxes for the next fiscal
year is to be thought Of. Secretary
Glass declared in his annual report
sent today to congress. Government
receipts must be kept at their present
figure, he said, in order to bring gov
ernment borrowing to an end.
Facing expenditures estimated at
s5,629.4S6,359 for the year ending June
80, 1920. and s4,47s.6sS35s ror the
year ending June 80. 1921. the govern
ment must enforce rigid economy, Mr..
Glass declared. He placed the deficit
for the current year at sS,s05, 5,ooo.0 900
and for the year ending June 80, 1921,
at approximately s2,0o5, 100000.
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 It's sinking fund we'll
under way and repayment of the war
debt satisfactorily begun" 81
Mr.. Glass charged that excessive
government expenditures were "the
most vital factors" in increasing the
cost Of living and argued that It was
urgently necessary to keep down pup
lie expenses for this reason as we'll
as because of the drain on the tax
payers.
Exeess Profits Tax Vicious.
The present revenue laws need re-
vising to meet new conditions. he said.
He referred particularly to the excess
profits tax laws. whichathe described
as being objectionable even as a war
tirra exped.ent." It would be 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 Of the increase
in living costs because It had been
passed on to the consumer.
"It encourages wasteful expehdi-
lures. puts a premium on overcapttali-
zation and penalty on brains" the
secretary continued ut discourages
new ventures and new enterprises and
establishes old ventures In their mo-
nopolies. In many Instances. It acts
as a consumrtion tax. Is added TO the
cost Of production uron which profits
are figured. determining prices. II has
been. and WILL so long as It remains
on the statute books continue to be
a material factor in the increased cost
Of living" 'aA ~ ::
In this connect,on Mr.. Glass also
urged redra ftirg of the revenue laws
10 prevent the evasion Of federal taxes
thru the Investment Of wealth In the
obligations OF states ana rnuricipa,i-
ties. He sa'd laws shorld be enacted
which would cor,nel the report.nr of
such incomes. nJthn thev are wholly
tax exemnt. and that that sum with
other income o. an Individual should
he COMMITTED as the basis for assessine (
federal taves On the amount derived
from, taxable sources.
Relations between conditions IN Fh'r-
one and those IN the r-ritnd States
wore discussed also nv Mt. Class He
s,'d +hat urdorhtea'v. +here was a
very great need In Turora for f'naoc-
Ia, assistance. bnt that. the situation
had been much exaggernted. ~,
Where Money ls Nseded.
Returr'ng tn the estimated govern
ment exrerditures for the fiscal year
ending June 80. 1921. Mr.. Glass said
the military establishment would ask
appropriations asgreeat'ng saSs.b7s..
s57. OF this sum. gsss7 $4,000 would
be required he said, for maintenance
Of the army proper. while ss6.40s 00t
would be apportioned to the nattora
guard. The military academy would
receive se.77s.637.
For the navy. the, appropriation o,
3542 .o31.s04. including $1s5.24so0 10,
a building program is to be asked.
An aggregate Of s194.h7s.0o0.rw will be
sought for public works. IN this 10 In.
cluded funds for improvements to riv-
ers and harbors totalling S53.sss aS5
Fortifications. arsenais and military
posts will require about $129,000,b00.
The legislative establishments Will
need 3s025,297. 1t was estimated, while
the executive branches Of the govern
ment combined will seek a total oi
$149,111.463. Chief among the latter de-
parLH1eNtdI expenditures lS HI eBIlINutt
Of $73, 3,405.101 for the treasury depart
ment. This sum, which is,much larger
than in former years, indicates added
expense to be borne in tho enforce.
ment Of prohibition. Included In, thu
also is the appropriation Of Sa7bea.l0!
to be asked by the department OF agri-
culture for carrying on its field activi.
ties.
The judiciary win ask 70,
S1.s34.19o. For foreign intercourse, ap-
propriations totalling $11.24S, ESQ, will be
sought. Appropriations for the do,
partment Of state, exclusive az tht
funds for use in foreign work, win bl
3l.b71.s50. and for the other executive
departments. appropriations to y,
sought will be a. follows: War de,
partment. proper, ls.sls..4s: navy Dc,
partment, proper, SS.os7 $40: ,ntsfio,
department, 1e.2S71SS: pest Office az.
partmert. o2.oss.s7o; department. ol
|co0nefos. S1s.77s,sS7: dspartlAsnt d