New Mexico state record. (Santa Fe, N.M.) 1914-19??, 1920-12-17

fortunes of the free peoples of NOR,
than one part of the world.
THE United States is of necessit,
the sample democracy of the world an,
the triumph of democracy depends
upon its success.
Adoption of Budget System Asked.
Recovery from the disturbin,
and sometimes disastrous effects O
the late war has been exceedingly
slow on the other side of the water
and has given promise, | venture tc
say. of early completion only in ouI
own fortunate country. but even with
us the recovery halts and is impeded
at times and there are Immediately
serviceable acts of legislation which
it seems to me We ought to attempt
to assist that recovery and prove the
indestructible recuperative force of
a great government of the people.
Il reluctantly vetoed the budget
bill passed by the last session of the
Congress because of a constitutional
objection. The House of Representa-
tiyes subsequently modified the bill
in order to meet this objection. In
the revised form | believe that the
bill, coupled with action already tax
en- by the Congress to revise its rules
and procedure, furnishes the founda-
tons for an effective national bud
get system. l earnestly hope there
fore that n of the first steps taken
by the present session of the Con
gress will be to pass the budget bill.
THE nations finances have shown
marked improvement during the past
year. The total ordinary receipts of
S6,69i,000,000 for the fiscal year 1920
exceed those for 1919 by S1,542,000,000
while the total net ordinary cXpendi-
lures decreased from SlS,514,0 1000 to
SO, i03, 1000 600. The gross public debt,
which reached its highest point on
Aug. =, 1919, when it was S26,596,-
100000, had dropped on Nov. 80, 1920,
to S24, l75,000,0O0 There has also been
a marked decrease in holdings of gov
eminent n securities by the banking
institutions of the country as well as
in the amount Of bills held by the fed
eral reserve banks secured by govern
ment war obligations. This fortunate
result has relieved the banks and left
them freer to finance the needs of
agriculture, industry and commerce. 1t
has been due in large part to the re-
duction of the public debt, especially
Of tho fI,nt;,. lnIt I,,s ..E
larly to the improved distribution of
government securities among perma-
nent investors. The cessation of
the governments borrowings except
through short-term certificates of in
d~obtedness has been a matter Of great
consequence to the people of the coun.
try at large, as well as to the holders |
of Liberty bonds and Victory notes and
has had an important hearing on the
matter of effective credit control.
"The year has been characterized by |
the progressive withdrawal of the
treasury from the domestic credit
market and from a position of domi-
nant influence in that market. The
future course will necessarily depend
upon he extent TO which economics
are practiced and upon the burdens
placed upon the treasury, as well as
upon industrial developments and the
of tax receipts at a suf-
.fieientIy high level.
'The fundamental fact which at
present dominates the governments fl
nancial situation is that $500 100000
of its war Indebtedness natures with
in the next two and a half years. OF
this amount 81. 600 are floating
debt and S5,000,000,0O0 Victory notes
and War Savings certificates. The fis-
raj program of the government must
be determined with reference to these
naturities.
"Sound policy demands that govern
nent expenditures be reduced 10 the
owcst amount which will permit the
services TO operate efficiently
that government receipts from
axes and salvage be maintained suffi-
'iently high Ia provide for current re-
luirements, including interest and
fund charges on the public
lebt, n at the same time retire the
loating debt and part of the Victory
oan before maturity. With rigid econ
my, vigorous salvage operations and
adequate revenues from taxation. n
of current receipts over cur
ent expenditures can be realized and :
hould be applied TO the floating debt. I
MI branches of the government should i,
cooperate TO see that this program is I
ealized. (
Payments to Roads a Handicap. e
Il cannot overemphasize the neces- v
lty OF economy in government ap- G
r%opriations and expenditures and a
avoidance by the Congress of $
which take money from the 5
by indefinite or revolving t
lnd appropriations. v
The estimates for the present year c
how that over a billion dollars of il
Expenditures were authorized by the "
ist Congress in addition to the Fl
mounts shown in the usual compiled o
of appropriations. This
-rikingly illustrates the importance Il
T making direct and specific appro- .
riations. Il
The relation between the current Ii
eceipts and current expenditures of h
he government during the present d
seal year, as well as during the last t,
alf of the last fiscal year.. has been p
Isturbed by the extraordinary bur-
ems thrown upon the treasury by d
lie transportation act, in connection o.
it'll the return of the railroads to %
control. Over 5000, 900, 900 b.
as already been paid to the rail- W