Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1920-12-08
FatherJOln Medicine
Has had more than Go years of
success for colds. coughs and
as strengthening food medi-
cine. 1t contains only pure,
wholesome nourishment. No
alcohol or dangerous drugs
Adv.

Adv.
when it was Sa6596. Oe0.0o0 had
dropped on November 20. 1920 TO
Se4.1T5. 100000 There has also been
marked decrease in holdings of
government war securities by the
banking institutions OF the country
as well as in the amount of bills
held by the Federal Reserve banks
secured by government war obliga-
tons This fortune result has re-
lieved the banks and left them freer
to finance the needs OF agriculture.
industry ana commerce. It has been
due in large part to the reduction Of
the public debt, especially OF the
floating debt but more particularly
10 the improved distribution OF gov
eminent securities among perma-
nent investors, the cessation OF the
governments borrowings except
through short term certificates OF in
debtedness has been i matter of
great consequences to the people of
the country gt large. as well as 20
the holders of Liberty bonds and
Victory notes, and has had an i'm
portant bearing OF the matter of eff
Tectye credit control The year has
been characterized by the progressive
withdrawal of the treasury from the
deEnostic credit market and from a
position OF dominant influence in
that market. The future course viii
necessarily depend upon the extent
10 which economies are practiced
and upon the burdens placed upon
the treasury as well as upon indus
trial developments and the mainten-
ance OF tax receipts al a sufficiently
high level
The fundamental fact which al
present dominates the governments
financial situation is that seven and
a half billions OF its war Indebtedness
mature within the next TWO and 4 half
years OF this amount two and a half
billions are floating debt and five bill
nlions Victory notes and war savings
certificates. The fiscal program Of
the government must he determined
with reference 10 these Inaturities
Sound policy demands that the gov
eminent expenditures be reduced TO
the lowest amount which will permit
the various services TO operate eff
GENTLY and that government receipts
from taxes ana Saivages ne maintain
ed sufficiently high TO provide for cur
rent requirements. including interest
and sinking fund charges on the pub
lie debt and ar the same time retire
the floating debt and part of the Vic
tory Loan before maturity. With
S-srrs
lions and adequate revenues from
taxation. a surplus OF current receipts
over current expenditures can be real
lied and should be applied to the
floating dent. All branches of the
government should Cooperate to see
that this program is realized.
1 cannot over emphasize the neces-
siIy OF economy in government ap-
preparations and expenditures ami the
avoidance by the Congress Of prac-
tees which take money from the
treasury by indefinite or revolving
fund appropriations. The estimates
for the present year show that over
a billion dollars OF expenditures were
authorized by the last Congress in
addition to the amounts shown in the
usual compiled statements OF appro-
priations.
This strikingly Illustrates the m
portanee Of making direct anu specific
appropriations. The relation between
the current receipts and current ex-
penditures OF the government during
the present fiscal vsur, as well as dur
ing the last half OF the last fiscal year.
has been disturbed by the extraor-
binary burdens thrown upon the
treasury by the transportation act in
connection with the return of the rail-
roads to private control. Over $780,
o00.9oo has already been paid TO the
railroads under this aer-s35O 0D0. 900
during the present fiscal year: and il
is estimated that further payments
agrregating possibly se50. 00o. 900 must
still be made to the railroads during
the current year II is obvious that
these large payments have already
seriously limited the government
progress in retiring the floating debt.
Closely connected with this. il seems
to me. is the necessity for an ir1rne-
date consideration OF the revision OF
our tax laws Simpiification of the
income and profits taxes has become
an immediate necessity. These taxes
performed an Indispensable service
during the war. The need for their
simpiiffcafion. however. is very great
in order to save the tax payer incon-
venience and expense and in order to
make this liability more certain and
definite Other and more detailed
recommendations with regard to taxes
viii no doubt be laid before You by
the secretary of the treasury and the
commissioner of internal revenue.
! II is my privilege to draw to the at
tenrion Of Congress for very syrnpath-
etic consideration the problem OF pro-
viding adequate 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