The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1920-12-07
LET us HAVE FAITH
THAT RIGHT is MIGHT
SLOW RECOVERY.
CONTINUED fror. page ~


has given promise, | venture to say
OF early completion only in our owr
fortunate country, but even with U.
the recovery hats and is impeded a,
times and there are Immediately ser
viceabIe acts of legislation which Il
seems to me we ought to attempt, tt
assist that recovery and prove the
understandable recuperative force o,
a great government of the people
One of these is to prove that great
democracy can keep house as succeo
fully and in as businessIike fashion
as any other government. It seems
to me that the first step towards pro
Vdins this to supply ourselves with
a systematic method Of handling our
estimates and expenditures and bring
ing them to the point where they will
not be an unnecessary strain upon
our income or necessitate unreascna-
bic taxation; in other words, work
liable budget system, and | respectfully
suggest that two elements are essen
tial to such system; namely, not
only that the proposal Of appropria-
lions should be in the hands of a
single body, such as single appro-
priations committee in each house of
the congress, but also that this body
should be brought into such coopera.
ton with the departments of the
government and with the treasury of
the United States as would enable il
to act upon a complete conspectuous
of the needs of the government and
the resources from which it must
draw its income. reluctantly vetoed
the budget bill passed by the last ses-
sion OF the congress because of con-
stittitionai objection. The house of
representatives subsequently modified
the bill in order to meet this objec-
ton. In the revised form | believe
that the bill coupled with action al
ready taken by the congress to revise
its rules and procedure, furnished the
foundations for an effective national
budget system. earnestly hope
therefore, that one of the first steps
taken by the present session Of the
congress will be to pass the budget
bill.
The nation's finances have shown
marked improvement during the past
year. The total ordinary receipts Of
IS ,6e4 GOO, ooo for the fiscal year, 1920,
exceed those for 1919 by $1,542, GOO 900,
while the total net ordinary expendi-
lures decreased from S13, 514, ooO, 900
to $6,4o3, 900 600. The gross public
debt, which reached its highest point
in August 81, 1919, when it was $685.
SOC, DOC, 900 had dropped on November
80, 1920. to S24, 175, 600 900. There
has also been marked decrease in
holdings Of government war securi-
ties by the banking institutions of the
country, as we'll as in the amount Of
bills held by the federal reserve banks
secured by government war obtiga-
tions. This fortunate result has re-
Iieved the banks and left them freer
to finance the needs OF agriculture,
industry and commerce. It has been
due in large part to the reduction Of
the public debt, especially Of tn.
floating debt, but more particularly to
the improved distribution Of govern
ment securities among permanent in
vestors. The cessation of the gov
ernment's borrowing except through
short term certificates of indebtedness
quence to the people of the country
at large, as we'll as to the holders OF
liberty bonds and victory notes, and
has had an important bearing on the
matter of effective credit control. The
year has beencharacterized by the
progressive withdrawal of the treas
ury from the domestic credit market
and from a position Of dominant in
huenee in that market. The future
course will necessarily depend upon
the extent to which economies are
practiced and upon the burdens placed
upon the treasury, as we'll as upon
industrial developments and the main
tenance of tax receipts at sufficiently
high level.
The fundamen fact which at
present dominates the government
financial situation is that seven and
a half billions Of its war indebtedness
natures within the next two and a
half years. OF this amount, two and
a half billions are floating debt and
five billions Victory notes and war
savings certificates. The fiscal pro-
gram Of the government must be de.
ternined with reference to these
naturities. Sound koIicy dem ands
that government expenditures be re-
duced to the lowest amount which
will permit the various services to
operate efficiently and that govern
nent receipts from taxes and salvage
be maintained sufficiently high to
provide for current requirements, in.
Guiding interest and sinking fund
charges on the public debt, and at
the same time retire the floating debt
and part of the Victory loan before
maturity. With rigid economy, Wig
orous salvage operations and ade-
Guate revenues from taxation, sur
plus Of current receipts over current
expenditures can be realized and
should be applied to The floating
debt All branches Of the government
should cooperate to Gee that this
program is realized.
ECONOMY IN EXPENSE.
cannot over emphasize the neces.
sity Of economy In govcrnm ent ap.
preparations and expenditures and
the avoidance by the congress of
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