Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1920-01-12
yNGRESS MAY
bOLVE NATIONS
debt PROBLEM
Only Slight Prospect of New
Liberty Loan, Says Secre-
tary of Treasury.
EXPENSE TO BE CUT

WASHINGTON, Jan. Headers in
\ congress today declared that there were
kslight chances of another Liberty loan,
us predicted by Secretary of the Treasury
Glass, If congress embarked on new
fields of large expenditure or reduces
taxes" Representative Mondell of Wyom-
ing, republican leader of the house, was
of the opinion that congress would re-
duce expenditures materially instead Of
Increasing them.
The secretary of the treasury gave fig
ufes showing a reduction of S759, 622, $40
in the gross debt of the country since
AVg. so and correspondingly large reduc-
eeZons in the floating debt on loan GER
tiicates and unmatured treasury certih-
Gates of Indebtedness.
1T will no doubt be recalled" said
Secretary Glass, that on Sept s, in an
n9nncinS an issue of tax certificates I
made certain statements concerning the
governments financial position ad pros
poets for the balance of the calendar year
and said that the turn of the tide had
come. Now that the figures at the years
end are in hand it appears that my most
sanguine expectations have been more
than realized
GOVERNMENT DEBT
CUT S759,622, S41.
con the basis of treasury daily state
ments, the governments gross debt on
Aug. 30 1919, was S26, 500, 701, 6bS. On
Dec. 81 it amounted to $50, S37, 078, 807, a
reduction of $3.50, 622,S
cts floating debt (unmatured treasury
certificates of indebtedness) on Aug so,
was S4,201, 139,050 On Dec. 81 it amounted
$50.
THE portion of the floating debt re-
curing to be refunded (so-called loan
certifcates) on Aug. so amounted to ST.
O123SI, 800. On Dec. 81 1t amounted to
S1,S26,66l coo, a reduction of $685., 900.
"The loan certificates outstanding on
Dec, 81 were OF issues maturing Jan. 2
Jan. 10, Feb. 2 and Feb. IS, 1920, and
have been or will be paid from cash on
hand Dec. 81 and from the proceeds of
the sale of tax certificates thereafter is
sued, thus concentrating the treasurys
plan for financing the unfunded portion
Of the war debt in such a way as to
avoid any large funding operations.
GRADUAL REDUCTION
OF WAR DEBT SEEN.
CAS- to the future, it may be stated
positively that unless congress should
enter upon new fields of large expendi-
ture not included in the reasurys estl-
swate or should make a reduction in the
amount Oh taxes In aOulL4ou TO the re-
duction made a year ago upon the rec
ommendation of Secretary McAdoo from
about $4,000, 600 900 to about S4.0O0,O00,O00,
we may look forward confidently to the
retirement of the floating debt out of the
taxes provided by existing law and mis-
cellaneous receipts coming within the
general head of war salvage (although
further issues of tax certificates in
diminishing amounts will be necessary
from time to time In the intervals be-
tween income and profits tax installment
payments), and to the gradual reduction
of the funded war debt through the op-
erations of the Liberty loan bond pur
chase fund and sinking. fund already
created by law.
ION the other hand. should congress
embark upon new fields Of large expen-
diture or further reduce taxes it will,
as I have already indicated, be clearly
necessary to revise the treasury's plan
and call upon the country to finance the
resulting deficit by the issue of new
Liberty loan"