The Dawson news. (Dawson, Ga.) 1889-current, 1920-02-03
NATION FACES SIX
BILLIONS DEFICIT
LEADERS DETERMINED TO CUT
INTO APPROPRIATIONS HEAV-
lily. SCRAP WAR MACHINE.

WASHINGTON, D. C.-The gov
eminent has made the discovery that
it's finances are in need of immediate
attention. Problems of the utmost
gravity along this line confront both
President Wilson and congress, prob
lens so pressing that they require
solution at the earliest possible mo-
ment. Huge deficits loom ahead, in
addition to the staggering amount al
ready piled up, and the era of waste
and extravaganza which had it's origin
in the hysteria of war shows no signs
of abatement.
Deficit of Six Billions.
Congress is convinced that some at
tempt must be made to make the ma
TONS expenses meet its revenues.
Just how much of a task this will be
is shown by the fact that the gap to
be bridged will be about $6,000,000,-
600 wide by June 80, 1921. The de-
felt at the close of the fiscal year on
June 80, 1920, will be close to $4,-
OOO,OO0,O00.
Already the democratic executive
end of the government and the re-
publican legislative end are far apart
on the whole financial program. And
this breach promises to widen, for
congress shows every indication Of
taking the bit in its teeth and insist
ing on economies which the executive
department does not favor.
To Scran War Machine,
The first thing congress plans to
do is to dismantle the costly war ma
chine erected during the war with
Germany. To this end both house
and senate leaders have decreed that
at least S1,5O0,000 must be cut from
the estimates of the executive depart
ment for the fiscal year ending June
80, 1921. These estimates, as submit
ed by Secretary of the Treasury
Glass from figures presented him by
the various executive departments, to-
tai 5,25O,000,0 1t is the inten-
ton of congress to cut them to So
500, 100000. The army and navy are
to be the two principal sufferers in
this reduction.
If the expenditures called for by
departmental estimates were author
lied by congress the deficit for the
fiscal year ending June 80, 1920.
would be ,950,000,0 For the
wear ending June 80, 1921, the de-
ficit would be $2,100,O0O,000 addi-
tional.
Bills Not All in Yet.
Even with this tremendous debt
piled up not all the bills will have
been paid. The figures above make
no provision for the $600,0OO,OOC
which must be paid to cover the de-
felt acquired by government opera,
ton of railroads, nor of $50, OOO,OOC
necessary to pay the additional
awards to disabled soldiers under the
provisions of the Sweet bill, nor OF
100000 to take care of pay IN
creases to employees of the postotfice
department, nor of at least $780,
t 100000 which will be necessary for
deficiency appropriations. :,
AS an example of how far apart
CONGRESS and the executive branch of
the government really are the secre--
tary Of the treasury has estimated
that the custom and internal receipts
of the Government will yield S5,515,-
100000 during the next fiscal year.
Senator Smoot, acting leader of both
the finance and appropriation com
mittees of the senate, declares that
these receipts will total but S4,,725,-
600, 900, a difference of about three
quarters of billion dollars.
Thirty Billions the Total Debt.
These figures are staggering, but
thew are merely "small change" when
'considerd in connection with the to-
tai Indebtedness of the government
This will amount, by June 30 next,
to S23, 100000 of short-term IN
terest- bearing notes and 100000,
600 of federal reserve bank notes.
To this must be added by June 80
of this wear deficit of $4,000, OOO,..
600, making a total indebtedness OF
sac. 600, 100000. To offset this huge
figures there are foreign loans OF
$4,000, 100000, but it is doubtful II
this nation will receive payment on
the principal of these for long time
to come. 80, ~
The-+otal Indebtedness. of the Unit
ed States when it entered the war
was less than S1,000,0O0,OO Now 1t
is 80 times taat amount.