Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-09-30
HOUSTON ANSWERS
DARTS OF HARDING
Secretary Declares Senator
Has Been Poorly Advised
on u. S. Finances.

Answering in detail criticisms made
by Senator Harding concerning the
wAy the government finances have
been administered, Secretary Houston
of the Treasury Department, in a
statement given out last night said
that he had been forced to the con-
clusion that "the senator's chief diff
Guilty is that he has forgotten that the
United States was engaged in the war
and has successfully financed the un-
paralleled burdens thrust upon it by
the war and conditions growing out
of the war;
In taking up the assertions made by
the republican presidential candidate
at Baltimore and Wheeling recently
Secretary Houston says it is obvious
that the Senator knows little of the
subject and that he is being badly
advised.
Says Statements Are Lacking.
Senator Harding's statements that
the public debt of the United States
in constantly increasing are not only
untrue but are peculiarly lacking in
frankness." said Secretary Houston,
for he bases the statement on $25.-
100000 increase in the two months of
July and August, 1920. emitting to
state the fact that in the year from
August 81, 1919, when the public debt
reached its peak at $26.596. 701. 64S.0l,
to August 81, 1920, there had been q
decrease in the gross public debt of
floating debt of s1,367,024,000.
Senator Harding's discussion of the
effect of issues of Treasury certificates
of Indebtedness on general business
conditions revealed complete ignor-
ance" of the situation. Mr.. Houston
asserted. Interest rates of 5A and 6
per cent. paid on the last issues, he
said. had resulted in increasingly
large quantities of certificates being
absorbed by investors and had not
compelled the withdrawal of funds
which might otherwise have gone to
charged. Reporting banks of the
Federal Reserve system. which had
subscribed IS per cent of outstanding
certificates, showed on August 81 that
they held less than $430. 100000 of
approximately $2,570.0o0,000 outstand-
ing, Mr.. Houston asserted.
Impossible to Get Action.
Senator Harding, further state
ment," Mr.. Houston continued. that
the administration went into the
world war without any workable plan
of finance. and came out of the war
without such a PLAN seems but an
other partisan attempt to deprive the
american people of their legitimate
pride in financing the war. an achieve
ment without parallel in the financial
history of this or any other country
in this or any other war. I should
further remind the senator that the
President, and Secretary Glass and I
repeatedly brought to the attention
of the Sixty sixth Congress the ne
cessity for revision of the tax laws
and presented definite and workable
plans for such revision, urging i'm
mediate action.
1.-The republican party has seemed
to indorse these proposals in every
respect save one-namely, the plea for
immediate action; that party, for ex-
ample. recognized the Importance and
feasibility of many of the tax revi-
sions which I suggested to Congress
in March, 1920, to the extent Of adopt
Jag them in almost the same words
Though without giving credit) in it's
national platform. in spite of the fact
that il had been impossible to obtain
any action by the republican Con-
press looking toward tax revision"