The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-07-28
61-2 BILLIONSIN
REVENUES WILL
PAY 1920 DEBTS
Glass Says U. S. Expendi-
lures May Not Exceed
Its Receipts.
NEED RIGID ECONOMY
NEED RIGID ECONOMY
Heavy Cash Requirements
Due in Next 5 Months,
He Asserts.
WILL ISSUE CERTIFICATES
Banks Notified of Plan and
Urged to Give Paper Wide
Distribution.
Special Despdtch to TIE srN.

Special Despdtch to The SuN.
WASHINGTON, July 27.-Government
revenues for the fiscal year ending
June 30 next will amount to $6,500,-
100000 at least, and there is no reason
to believe that expenditures will ex-
ceed that amount. Carter Glass,
Secretary Of the Treasury, made this
prediction tonight in letters sent to
banks and trust companies.
These figures mean that there will
be no net increase in the public debt
for the year beyond the amount of de-
ferred instalments of the last Liberty
loan. The next five months will wit
ness the heaviest expenditures for
the fiscal year. and the financial pro-
gramme contemplates increasing the
outstanding certificates of indebted
ness. Mr.. Glass makes it plain that
the inference that an early issue of
notes will be required is erroneous,
stating that the Treasury does not
contemplate issuing notes until mar
ket conditions favor such an issue on
terms advantageous to the Govern
ment. The letter follows:
'I am writing the banking institu-
tons Of the country in pursuance of
the plan followed by my predecessor
during the past year and a half to
inform them Of the, financial plans for
the remainder of the calendar year
and the probable needs Of the Treas
ury during that period and indeed dur
ing the fiscal year ending June 80,
1920, in so far as they may now be
foretold. have only recently had oc-
casion to lay before the appropriate
committees of Congress a report OF
the financing OF the war to the end of
the fiscal year June so, 1919. A copy
Of this report may be had upon ap-
plication to any Federal Reserve bank
or to the Treasury Department
s6,5OO,OOO,OOO in Revenues.
"It 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 settlement. when rehabilitation is
still incomplete, when the extent of the
liability on the wheat guarantee is un-
ascertained, and when the business upon
which the income and profits tax re-
ceipts In the first half of the calendar
year 1920 are 10 be based is, still only
ha.f transacted, to make a formal esti-
mate of the receipts and expenditures
nf No -Y,it cd Rsn
year.
"I do not hesitate TO say. however.
that ! anticipate that the Governmen mt
will be In receipt OF revenues under ex-
listing law and from the Victory Liberty
Loan during the fiscal year 1920 to the
amount OF at least $1,000, OOo, ,0OO, d-
vided somewhat as follows
internal revenue. ................... sisio0oo mn
Customs ........,.................. go coo 0CQ
Sale of public lands ................ 100000
miscellaneous ......-'-...'..,s..-... 500 zoo
Total ordinary receipts ......... 81. sos. .OCO. 900
Victory Liberty Loan instalments .OSe. 900. .O0O
Total s5s5.0OO 600
In the absence OF budget system or
of any Treasury control OF governmental al
expenditure ii is even more difficult to
fortell the expenditures than the re-
ceipts OF the Government.
Decrease in Expenditure.
Current expenditures. which reache d
the maximum OF $4,000, 900, 900 in De-
cember, 1918. fell In June to Ss0s, ,0OO.-
900, and after deducting the amount OF
the certificates Of Indebtedness OF the
Director General of Railroads paid dur
ing the present month of July should
show a still further decrease in this
AL -
uncertainty above referred to. have no
present reason to believe that the ex-
penditures of the Government during the
fiscal year 1920 will exceed the amount
Of its receipts as above indicated. exclud-
ing transactions in the principal OF the
public debt other than the Victory Loan.
II these expectations prove to be correct
the gross public debt OF the United
States. which on June 80. 1919. amounted
TO $26, s4,b06.160. should be increased
during the fiscal year 1920 by not more
than the amount OF the deferred install
ments OF the Victory-Liberty Loan pay
able in the fiscal year 1920, s1.0S2. .OO0,-
900, making a total public debt on June
80. 1920, when presumably the whole
cost of the war will have been financed,
OF, say. S2s.516,5os,16o.
THE realization of these sanguine ex-
pectations is contingent upon the prac-
tice of most rigid economy by the Gov
ernment and the continuance OF ample
revenues from taxation.
''The heaviest period of expenditure
during the current fiscal year probably
will fall in the summer months OF July.
August and September because of the
heavy disbursements Of the Railroad Ad-
ministration heretofore held back for
lack OF appropriation. the heavy pay
ments in settlement OF army contracts
and on account OF the demobilization
and maturities OF certificates issued in
anticipation OF the Victory loan.
Cut Outstanding Certificates.
"The amount OF certificates outstand-
ing in anticipation of the Victory Lib
erty Loan at any one time Excluding
certificates redeemed, tax certificates,
&c.), which on May had reached the
peak at s5.797. 900. had up to July
Continued on Seventh PdQs IA.