Norwich bulletin., 1920-12-14
Revenue Legislature
 Revision a Puzzle
How to Meet $7,5OO, ,OO0, 900 of War Time Debts Matur- ing Within the Next Two and a Half Years.

Washington, Dec 13-Concern of congressional leaders as to ability of the treasury to meet the $7,500, ,000, 900 of war debts maturing within the next two and a half years was indicated by Chairman Fordney of the ways and means committee today both in the house and at the opening of hearings by his committee on revision of reve- uue legislation
 The ways and means committee chair man frankly, expressed doubt as to whether the estimate of a four billion annual tax levy would be sufficient to meet the requirements of the govern ment over the period of maturing treas ury certificates and victory notes As solution he advocated refunding into long term bonds of the certificates now agg-egating S2,35o, 100000 as well as of the first issue of war savings stamps and the Victory note issue
 Adoption of such a solution, Mr. Fordney declared, probably would en- able a reduction of taxes below Secre- tary Houston's estimate for four bil- lion dollars It also, he said, would permit tax levy for several years suf- ficient only to cover current fiscal needs of the government and interest on the public debt and sinking fund opera 1 tions.'
 The first witness before the commit tee at the tax revision hearing, however, disagreed with MT. Fordney on the pro- posal. In reply to questions by Repre- sentative Longworth, republican, Ohio, 1 pr. Thomas S. Adams, treasury tax ex- l pert and economist, said the program of the treasury tax expert and econ
 omist. said the program of the treasury appeared to provide sufficient revenues l to take care of the maturing obliga- l tions except the saving stamps which would be paid through the sale of other issues of such stamps as each yearly is-
 sue falls due. He added, however, that 1 the treasury estimates for taxation
 could stand no reduction if the program
 were to be carried through and the
 maturing obligations met
 l Politics entered into the discussions 1 of the methods of paying off the war debt when the committee reached the subject later in the day. Represents 1 tive Garner, democrat Texas, vigor.
 ously opposed the. Fordney suggestion saying it meant that the government was ''breaking faith with the people whom it had assured tat it would take lup the floating debt to make the Liberty bonds retain their proper level of mar
 ket value" To float another loan, Mir Garner asserted. would materially I weaken the quotation of the Liberty bond prices.
 We'll Mr. Fordney countered, 'those 1 things were the work of the democratic administration. That floating debt wa! the product of the democratic admins l tration. But inasmuch as We have it
 it has now become an obligation of thl jrepublican party and I %aean tr','o all can t oget rid Of it Without Durdeninl
 our, people with taxation"
 Dis s.ussion of actual tax revision questions by the committee developed
 an almost unanimity of opinion amoni it's members with respect to the repea of the excess profits tax.
 Dr. Adams, speaking for the treasury concurred on this point, bu- warne'
 the committee that congress shoul, keep in mind difficulties attendant upoi collection of a sales tax.