The Barre daily times. (Barre, Vt.) 1897-1959, 1919-12-03
Declared Sec. Glass in Re-
viewing Nations Finan-
cial Condition
NEW APPROPRIATIONS
SHOULD BE DENIED
Excessive Government Elk
penditures Factors in In
creasing Cost of Living

Washington, D. G., Dec. 3.No APP
preciable reduction in taxes for the
next fiscal year is to be thought of,
Secretary Glass declared in his annual
report sent to-day to Congress. Gov
eminent receipts must be kept at their
present figure, he said, in order to bring
government borrowing to an end
Facing expenditures estimated at
s. ,620, 4S6 $50 for the year ending June
80, 1920. and 81 ,473 $780, 5S for the year
ending June 80, 1921, the government
must enforce rigid economy, Mr.. Glass
declared He placed the deficit for the
current year at S3,o05,000e00 and for
the year ending June 30, 1921, at APP
proximately S2005, 100000
On this basis, Mr. Glass urged Con
gress to deny every appropriation for
expenditure in new fields" lie 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 GOV
eminent expenditures were "the most
vital factors" in increasing the cost OF
living and argued that ii was urgently
necessary to keep down public expenses
for this reason as well as because Of
the drain on the taxpayers.
The present revenue laws need re-
wishing to meet new conditions, he said:
He referred particularly to the excess
profits tax laws which he described as
being Objectionable even as war
time expedient" Ii would be still
more Objectionable in peace-time, he
added Less harmful forms" Of deriv.
ing 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.
1T encourages wasteful expenditures,
puts a premium on over disqualification
and penalty on brains" the secretary
| continued 1T discourages new ven
lures and new enterprises and estab-
fishes old ventures in their monopolies
In many instances, it acts as con
sumption tax, is added TO the cost Of
production 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.
teria factor in the increased cost Of
living.
In this connection Mr. Glass also
urged redrafting Of the revenue laws
70 prevent the evasion of federal taxes
| fhFaugb tbn ;px-aa4 ,aap4 aF aaifA IN
! the obligations of statessand municipal
titles. He said laws should be enacted
which would compel 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 taxes on the amount derived
from taxable sources.
/ 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 financial
assistance. but that the situation had
been much exaggerated
"We must all feel deep sympathy
Tor Europe to-day" he said. but We
must not allow our sympathy to warp
our Judgment and, By eNaggerating
European financial needs, make them
| more difficult to fill Ihe frob
lem OF financing Europe belongs largely
10 the exporter because industries can
not be reopened without raw stocks.
Government financial assistance in the
past aud talk Of future government or
| banking aid to finance exports have APP
parently led our industrial concerns TO
the erroneous expectation that their
war profits, based largely on exports,
will continue indefinitely without any
risk on their part To them will fall
the profits Of exports and upon them
viii fall the consequences Of failure to
make the exports