The Chattanooga news. [volume] (Chattanooga, Tenn.) 1891-1939, 1920-10-20
PLAN TO HANDLE
u. S. WAR DEBT
Secretary Houston Forecasts
Expenditures Next Year
of Four Billion.
FINANCES DISARRANGED

Washington, Oct, 20..-Government
expenditures OF four billion dollars dur
ing the next fiscal year were forecast
by Secretary Houston, Of the treasury
department, today in an address before
the convention Of the American Bank
ers' association in which he covered n
wide range Of financial and economic
problems Of the nation.
The secretary outlined the treasury's
program for handling the war debit
LIQUIDATION Of which, he said. must go
on steadily in order thnt final redcmp-
tlon be accomplished without disturb
ance TO national lie. Ilc appealed for
! "the striCtcst economy not only In our
expenditures, federal state, county and
municipal, but also by thrift on the
part OF our people" adding that the
program necesstated the maintenance
Of taxation "aftcr this fiscal year on
n level OF not less than oOo'OOooOo
annually.
Mr. Houston said there were indlcn-
| tons OF falling receipts because there
was no means OF predicting the course
Of business or incomes and profits.
The receipts for the present fiscal
year. he reported would be materially
| lower than the record OF $500 900 600 last
year. expressing the belief that the re-
coipts would not greatly exceed the re-
duired $4,000. 000,0 00 under the present
levy.
TAX Basis.
I'VE cannot afford to operate on
tax basis which would give Ms reve-
nues below these anticipated" tho
speaker continued, "and in plans for
revision this should be definitely borne
In mind.
'T.et me make this point clear: TN
saying that the aggregate receipts for
the government should he maintained
Mt a high level for the purposes indi-
early spring Mr. Houston pre-
myself to existing schedules or to
specific taxes Much Of the war legls-
lation wasi OF necessity hastily de-
vised think II Of urgent importance
that there be prompt resurvey OF the
situation with n view to a reform OF
the taxes, to the wiring out OF In
eduities and Inequalities and the as
surance OF sufficient revenue which
may not he realized II the present sys-
tenn remains intact
Treasury Program,
The trcasurv's program had been
heavy burdens imposed by the trans
rortation net" He estimated the total
amount which the government will pay
the roads at S1.00OOo0 600, about one
fourth OF which already Inns hecn
turned over TO them, The remainder
paidearly spring. Mr.. Houston pre-
dictod rapid reduction in the gross ma
tIonai debt through the coming year.
particularly the $2.3b0 00n.O00 short
term certificates outstanding. The
TREASURY program, he added. would re-
suit In reducing this below 81 moo 000,-
90" and perhaps to 81 500 100000,
7y the end OF the fiscal year 1922,
Mr. Houston declared, the treasury
should have redeemed its entire float
ing debt" or the short term certin-
Gates, when the victory notes matur.
ing the next year would become prac-
ticallv the floating debt and probably
be accepted in payment Of federal
taxes.
Turning to the demands OF ngrIcul-
turnl interests for government help
Mr.. Houston said that scarcely had
n reduction IN tho cost Of living mani |
tested Itself when every producer
manifested resistance"
EVERY producer liz willing for tho
products OF every other producer to
decline, hut protests tho decline In his
own" he continued. "'rhcrc II much
human nature in this, but not much
reasonableness
1.-THE situation II the result mainly !
nf war and In no small measure the
failure OF this nation and nations
everywhere to date, TO devise better
ARRANGEMENTS for storage and market
Ing OF farm products, For these things,