The Bridgeport times and evening farmer., 1919-12-03

l fiscal year is to be thought of Sec 1 rotary Glass declared ill his annual 1 report sent today to Congress. Gov l ernment receipts must ne kept at 1 their present figure, he said in order 5 government borrowing to an
 end.
 i Facing expenditures estimated at l $5,629, ,4S6,359 for the year ending 1 June 30, 1920. and $4,473, ,696,358 for 1 the year ending June 30, 1921, the i government must enforce rigid econ i omy, MT. Glass declared. He placed , the defciet for the current year at
 $3,9O5, 5,O0O,O00 and for the year end- Ting June 30, 1921, at approximately 1 $2,005, 100000
 On this basis Ma. 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 sink ing fund well under way and repay ment of the war debt satisfactorily begun.
 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 pub lie expenses for this reason as we'll as because of the drain on the tax payers.
 The present revenue laws need re- vising to meet new conditions, he said. He referred particularly to the excess profits tax laws which he de- scribed as being objectionable even as a wartime eXpendient." It would be still more objectionable in peace time, he added. Less harmful forrns'' 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 con sumner.
 Tt encourages wastefuI expeditures puts a premium on capitalization and a penalty on brains," he con- tinued. Tt discourages new ventures and new enterprises and establishes old ventures in their monopolies. In many instances, it acts as a consump- tion tax, is added to the cost of pro- duction upon which profits are fig ured, determining prices. It has been and will, so long as 1t remains on the statue books, continue to be a material factor in the increased cost of living
 In this connection, MT. Glass urged redrafting of the revenue laws to prevent the evasion of federal taxes through the investment of wealth in the obligations of states and nuni- cipahues. He said laws should be enacted which would compel the re- porting 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 of assessing federal taxes on the fro
 Relations between conditions in Europe and those in the United States were discussed by MT. Glass. He said that, undoubtedly, there was a very great need in Europe for financial as sistance, but that the situation had been much exaggerated.
 We must all feel deep sympathy for Europe today" he said" but we must not allow our sympathy to warp our Judgement and, by exag- gerating European financial needs, make them more difficult to fill. The problem of financing Europe belongs largely to the exporter because indus tries cannot be reopened without raw stocks. Government financial assist ance in the past and talk of future government or banking aid to finance exports have apparently led our in dUstrial concerns to erroneous expec- tation that their war profits, based largely on exports. will continue in definitely 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
 The Treasury will continue it's poli- cy, in effect since the armistice, to restore private initiative and remove +a1 with respect to the nations forign trade, MT. Glass said. Only through this means, he argued, could d "heaIthy economic life be gained" He added that removal of any inf1u- ence by the government should pro- vide the incentive for Amercan com merce to go into the world markets and establish itself. Ratification of the peace treaty will measura bIy stimulate export trade, MT. Glass de- clared, because operation of the pact would eliminate numerous political risks and provide a surer investment basis
 Closely related to any activities of the government in foreign trade is the subject of incorporated govern ment agencies, withdrawal of which Mir. Glass strongly urged. He said their manifest weaknesses'' were proof sufficient that such arrange ments were not happy one for the government nor for the persons charged with administration of the corporations. While not saying that any of the agencies, created during the emergencies of war had been gull ty of wastefulness, MT. Glass pointed out that there was no objective such as business profits to hold expendi- lures down. On the other hand, of fcers managing the agencies operate i on a capital for which there is no l accountability or check and always , have access to more funds if a real | need exists. Cases where government l funds are employed semi-independ- i ently, MT. Glass declared, largely justified government red tape in ac- counting"
 Returning to the estimated govern ment expenditures for the fiscal year ending June 30, 1921, MT. Glass said the military establishment would ask appropriations aggreating s9S9, ,57S,- 667. Of this sum, $S97,392, 020 would be required, he said, for maintenance of the army proper while $84,40S,- 900 would be apportioneda to the na-
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