Every evening, Wilmington daily commercial., 1920-12-18
TAX NEARING LIMIT,
WITH CREDIT GOING
Chairman of Senate Appropria-
tions Committee Issues
Sharp Warning.

Washington, Dec. fS.-Unlcss reck-
lessress in govern mental expen dittnes
is curbed at once bankruptcy corfronts
the Nation, Senator Warren told his
associates Yesterday. As chairman of the
Appropriation Committee, he declared
there must either be n Tightening Of the
purse-strirgs or IN additional burden oi
heavy taxation
Emphatic warning was given by Sena-
tor Warren that all new demands upon
the treasury must be nipped. NO new
departments ts and bureaus should be ea-
blished and there must be paring and
loppirg off, he added.
"The Treasury" said Senator War
rcn. "reeds friends now, if it ever did, II
this Nation is to remain solvent i feel
it ircumbent upon me TO say that IN my
opirion we are going TO be without credit
in this Nation Our bonds are going much
lower, and we are going to have to pay
larger Interests upon these certificates
of indebtedness, unless we are able to re-
trerch very sharply. The condition OF the
Treasury is somethTg g like this
During the war, of course, 1T was
easy 10 obtain funds because every pa
t,iotic, loyal citizen was ANXIOUS to sup
port he government. They subscribed
for funds readily at low rate of interest,
many of them, in fact ! might almost
saw a majority of them, beirg compelled
to borrow morey to buy the bonds.
''rhev have since had to call upon the
barks to relieve them, 10 take the bonds
from time 10 time, at reduction OF ftom
5 TO II per cent They have had to DIS
pose Of many of them TO pay their goveTf =
mcrt taxes You will FL d the last pay
me. of taxes WAS quite largely made
bv ttos who hadno other funds available
and had to sell their bonds.
during a part of the war period, we
had almost $50, 0,000, 600 600 Of indebted,
ress, perhaps sometimes more. We had
rearly $4,000, 100000 Of certificates nj
the highest tide We have now S24,O0O,-
COO 600 of funded debt and sOmethll &
over 3. 500 OOO. 600 of floating debt, which
is two or three times as much as We pald
immediately after the passage Of the
bill authorizing the sale Of certificates IN
peace times.
"Nhen we had occasion 10 borrow
morcy. we could then borrow il az z anc
8 per ce.t on the certificates. The Cover.
mont is now in position that we oil
would think ursound for buslress man
who was horrowil from day 20 day Of inc
Street, selhrg his paper where he might
The Government now from month 70
month is appeahrg 70 citizens and to
bar kers 10 buy these certificates that 4
may buy up others.
I'VE had prosperous year in 1919
Nearly every one e. gagged ~, busi, esS
then made morey. Hence, when they
made their returns for taxation they
made liberal returns, and the tax to be
collected for 1919 was ample 70 meet eN-
pectatlous. That, with the help Of tempo,
rary borrowiI IS which are ben gTeriaced
from time 10 time. has carried US through.
But ] think every Senator IN TINS oodN
knows that 1920 has not been altogether
prosperous year.
1T certain ~ is not expected that
thousands and tens Of thousands, It might
be said millions. who in 1919 reported an
ability to pay taxes. and who actually
id considerable amounts, are going to
| be able for the year 1920 70 report more
than an even break, and most Of them Will
| have 10 report losses.