The citizen. [volume] (Berea, Ky.) 1899-1958, 1920-09-30
BY JAMES p. HoRNApAY.

Washington.-IIow to cut down the
expenses ~ the federal government
aud thus open the way for n rcduc.
ton In federal taxes will be one Of
the Important questions congress will
be obliged 10 take up when IL comes
back In December. Both the big po-
liticnl parties ARE pledged To reduce
expenses Of government. and both
have promised To reduce taxes. Prom
ises are, ~ course. cheap. but In this
case public sentiment Is so over
whelmlngly IN favor Of cutting down
expenses and also reducing taxes that
some effort to keep the promises that
have been made will have TO be put
forth
Treasury certificates Of indebted
ness 10 the amount Of about 500 900.
90 mniured ON September -. and
about SlGOOOOOOO mature on October
-, 1870. The greater part Of these
SNoDVoOOO maturing certificates will.
the secretary says. be covered by the
insiullment Of Income and profits
taxes payable on September - In
order 90 provide for the balance OF
the certificates requiring 10 he re
funded and To meet the current re-
qulremcnts of the government up TO
October -, the treasury has decided.
on the basis Of the best estimates
available az this time. 10 offer treas
ury certificates Of Indebtedness in the
. fslal H..
series. both dated September 10, one
series designated T VI 1881. bearing
81 per cent interest maturing March
II. 1921. and the other series desig-
mated 7 Slo2i. hearing @ per cent In
terest and maturing September ~.
1927.
First Quarter May Show Surplus.
ON the basis ~ daily treasury state
ments. during the first two months OF
the current fiscal year beginning July
/. 1920 the ordinary receipts OF the
government amounted 20 S62S 76I.-
l9l13. while the ordinary disburse-
ments during the saIhe period amount
B, = 20 S75i 072. 0Ol.7G. leaving n net cur
rent deficit texcess OF ordinary dis
bursemcnts over ordinary rcceipts) OF
Sl25.30a. 710G3. This net current deficit
for the first two months Of the fiscal
year Il due chiefly 20 actual cash pay
ments IN amount Of some 100000 600.
made necessary by the provisions OF
the transportation act IN connection
with the return Of the railroads to pri-
waite control According 10 the latest
estimates. payments on account OF the
railroads will probably continue on
large scale during the balance Of the
present calendar year. and will be
relatively heavy during the month of
September
Notwithstanding the net current
deficit during the first two months and
these extraordinary payments on nc
count 81 the railroads. II Is expected
that the first quarter Of the fiscal
year. ending September 30. 1920. viii
show n surplus.
Debt 20 BE Further Reduced.
Further issues of treasury certln-
Gates during the months OF October
and November may subsequently re-
suit In temporary increases I'm both
gross debt and floating debt. but the
treasury confidently expects that by
the completion OF the second quarter
Of the fiscal year. on December 81
1920. any such temporary Increases
will have been overcome. and that the
gross debt and floating debt on De
cember 81 will have been further re-
duced below the amounts outstanding
on September 30.
The treasury has no difficulty I'm sell
ing certificates. They go like hot
cakes because they bear high rate
OF interest and are exempt from state
and local taxation. except Inheritance
taxes. and from normal federal income
tax and the corporation income tax.
aud are admissible assets for the pur.
pose OF calculating profit taxes. But
II Is obvious that the treasury depart.
ment must some time. and the sooner
the better, stop Offering these certih-
Gates for sale
surgar Prices Down to Stay.
The government authorities be
lieve that low prices for sugar
are here 10 stay. This opinion
Is reached by both the department OF
Justice and the agricultural depart
ment, after each has made its own in
vestigatlon. The authorities express
the view that the profiteer and the
Spectator have had their day. and
that the law OF supply and demand
will get back 10 work.
There Is also general agreement that
there was bur little excuse for the hys-
terra over sugar during the last year,
and there il further agreement that
prices never should have gone as high
as they did go. II is asserted that
there has always been a sufficient sup
ply OF sugar; that the spectators. and
An. ..ono..I h.llof sIae ehara mae .