Every evening, Wilmington daily commercial., 1920-12-07

The year has been characterized by the
| progressive withdrawal Of the treasury
from tho domestic credit market and
| fromn position Of dominant influence In
that market. Tho future course will
necessarily depend upon the extent to
| which economies are practiccd and upon
the burdens placed upon the treasury, as
well n upon industrial developments and
the maintenance Of tax receipts at n suf-
ficiently high level.
The fundamental fact which Mt pres
ent dominates the governments financial
situation Ia that seven and half billions
of its war Indebtedness mature within the
next two and half years. OF this amount,
two and half billions are floating debt
and five bilious Victory notes and War
Savings certificates. The fiscal program
of the government must be determined
with reference to these maturities Sound
policy demands that the government
expenditures be reduced to the lowest
amount which will permit the various
services to operate efficiently and that
government receipts from taxes and sal
wage be maintained sufficiently high to
provide for current requirements; inchid-
ing interest and sinking fund charges on
the public debt, and at tho same time re-
tire the floating debt and part Of the
Victory loan before maturity. With rigid
economy, vigorous salvage operations
and adequate revenues from taxation,
surplus of current receipts over expendi-
lures can be realized and should be av-
piled to the floating debt. All branches
of the government should cooperate To-
zee that this program is realized.
cannot over emphasize the necessity Of
economy in government appropriations
and expenditures and the avoidance by the
cos gress OF practices which taken money
from the treasury by indefinite or re-
volving fund appropriations. The esti-
mates for the present year show that over
billion dollars of expenditures were
authorized by the last congress in addi-
tion to the amounts shown in the usual
compiled statements Of appropriations.
This strikingly illustrates the import
ance of making direct and specific
appropriations The relation between
the currect receipts and current eSpendi-
lures of the government during the pres
ent fiscal year, as well IA during the last
half of the last fiscal year has been DIS
turbed by the extraordinary burdens
thrown upon the treasury by the trans
portation act in connection with the return
of tho railroads To private control Over
5000, 200, 900 has already been paid to
the railroads under this act $3.50 900, 900
during the present fiscal year; and it is
estimated that further payments aggre-
eating possibly $3.50 600, 600 still must
be made TO the railroads during the cur
rent year. IL is obvious that these large
payments have already seriously limited
the governments progress in retiring the
floating debt
Closely connected with this, il seems 20
me, Is the necessity for an immediate con
sideration of the revision Of our tax laws.
Slmplfoation Of the income and profits
taxes has become An immediate neccs-
sity These taSes performed an indispen-
sable service during the war. The need for
their simplifcation. however u very
great. IN order to save the taxpayer in
convenience and expense and in order to
make his liability more certain and def
mite Other and more detailed recon-
mendations with regard TO taxes will no
doubt be laid before YOU by the secre-
tsry Of the treasury and the commissioner
of internal revenue.
1t Is my privilege 20 draw 70 the atten-
tion Of Congress for very sympathetic CON
sideration the problem of providing ade-
quate facilities for the care and treatment
of former members of the military and
naval forces who are sick or disabled as
the result of their participation in the
war These heroic men can never be paid
in money for the service they patrioticallv
rendered the nation. Their reward will