Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1920-01-12
ANOTHER LOAN
Unless Congress OBJ
serves Economy

SSS'SNdiy 0sdSS seVS OF FINANCIAL
Condition Of v. S. Treasury -
Must Be No Big Expenditures in
New Fieids-No Reduction in Vol.
ume Of Taxes
Washington, Jan. IL. = Another
Liberty loan will be necessary if
Congress embarks on new fields Of
large expenditure or reduces the ay-
gregate volume of taxes" Secretary
Glass declared in a statement tonight
setting forth in detail the govern
ment's financial condition. If the
present tax level is retained and new
expenditures are kept down the turn
has come in the tide OF government
financing" the secretary asserted.
Barring the congressional action
mentioned, Mr.. Glass believed the
treasury would be able to pay its own
way from tax and war salvage re-
ceipts. Although further issues of
treasury certificates of Indebtedness
may be expected, they will be re-
deemed from cash on hand rather
than through the sale Of new issues
of certificates for the first time since
late in 1917. The treasury secretary
directed attention to statements in
September in which he expressed
opinion that the strain had lessencd
and that after January the govern
ments financial problems would be
solved more easily.
AS indicative Of the progress made
by the treasury in solution of these
problems. Mr.. Glass pointed to reduc-
tions between September l and jan
uary in the nations gross debt and
in the two classes of certificates of
Indebtedness outstanding. The gross
debt which on September 1 was $685.
500, 701,64S, was $25,S37,O7S,S07 on
January 1. Reduction in the floating
debt (unmatured treasury certif-
Gates of indebtedness) Of $622,653,250
has been made since September l,
leaving the total outstanding obliga-
tions of this nature at $3,578.4S5, 500
on January 1. A reduction Of $685.
1860 was reported for the same Pc
riod in the outstanding so -called loan
certificates. leaving $1.326, 900 of
these yet to be funded.
The loan certificates outstanding jan
uary 1 were of issues maturing January
2. January Is, February and February
1S All of these. the secretary said,
on hand January l, or from the proceeds
of sales of taxes issued in anticipation
Of any one of four tax installments due
during the present year. Mr.. Glass be-
lieves this indicates success of the
treasury's plan to avoid further large
funding operations and for financing
the unfunded portions Of the war debt.
"As for the future his statement
continues. lit may be stated positively
that unless Congress should enter upon
new fields of large expenditure. not in
cluded in the treasury's estimates, or
should make a reduction in the amount
Of taxes in addition to the reduction
made a year ago upon the resolution OF
Secretary McAdoo from about 5000, O00,-
900 to about "a, 900, 900 900, we may look
forward confidently that the ratification
Of the floating taxes provided by exist
ing law. miscellaneous receipts coming
within the general head Of war salvage
(although further issues Of tax certifi-
Gates in diminishing amounts would be
necessary from time to time In the in
tervals between incomes and profits
tax installment payments). and to the
gradual reduction of the funded war
lebt through the operations of the Lib
erty Loan bond purchase fund and
sinking fund already created by law.
On the other hand, should Congress
embark upon new fields OF large ex-
penditure or further reduce taxes, it
will. as I have already indicated. be
clearly necessary to revise the treas
ury's plans and call upon the country
to finance the resulting deficit by the
issue of a new Liberty Loan"