The Owosso times. (Owosso, Mich.) 1897-1926, 1920-04-23

funded debt since June 30, 1919, has
been more than offset by the depre-
citation of $1,000,00O,000 in our cash
assets"
Summary Situation
Mr.. Fordney summed up the situa-
tion in this table: -
Cash balance, June 80,
1919 ..........................S 1,251 1854, 1927
Gen1 fund, Mch. /, 1920 261 ,622, ,538
Decrease in cash assets 1,000,042,2
Public d'bt J'ne 80, 'r9 25,484, SOC, ,160
March 81, 1920. 24,698,671, ,5S4
Decrease in public debt 785,735,575
Net decrease in assets 214,207,713
On June 80, 1919, when the gross
debt was $25, ,484, 500, ,160, the general
fund balance was $1,251 ,664,827, leav-
ing difference of $24,232, ,841 1888.
On March 81, 1920, when the gross
debt was $24,698, ,671 ,5S4, the general
fund balance was $251 ,622.538, leaving
difference of $24,447, ,O49,4 ,4O6.
Conditions Less Favorable
"This indicates" said Mr.. Fordney,
"that the condition of the treasury is
less favorable on March 81, 1920, then
on June 30, 1919, by $214,000, 900, and
this is in harmony with statement
contained in the daily statement of the
United States treasury of March 81,
1920, which gives the excess of dis
bursements over receipts as $214,207,
713.
"The treasury closed the month Of
March, 1920, with a cash balance Of
but $251 100000. From June 3d.
1919, up to the beginning of Febru-
ary, 1920, the cash balances in the
treasury have fuctuated from approx
imately $7O0,O00,00O to $1,250, 0,OOO,O 900.
During this period the refunding of
maturing treasury certificates by new
issues of certificates was constantly
going on.
"Why the treasury department did
not exhaust these balances in order to
reduce the debt at an earlier date is
the question which might be appro-
priately asked.
"In the same connection it should be
pointed out that, with the cash bal
ance exhausted, the treasury depart
ment now recognizes the necessity for
new borrowings, through treasury
short term certificates, to meet ex-
penses for the next two months. Real
and permanent improvement in the,
condition of the treasury can come
only from economical administration.
The American people had hoped that
| the current fiscal year 1920 would
| witness a substantial return to pre-
war conditions and pre-war expendi-
| lures.
"With the signing of the armistics
congress expected that the admins
tration would submit definite pro-
gram of retrenchment and readjust-
ment in connection with its estimates,
then about to be transmitted for the
| fiscal year 1920.
What is Policy?
Economy, retrenchment, and inn
provement of the condition of the
treasury must be based upon a sane
expenditure policy. In the light Of
requests for appropriations for 1920,
calling for $11 100000, O,000-9S per
| cent of which came from the admin
] istration-the taxpayer might we'll
ask What is the postwar expenditure
policy of the present administration
"For months the sixty-fifth and six
| ty-sixth congresses struggled in 1919
| with the original estimates which, in
| large part, were guesswork-and Of
| ficials from the departments admitted
| that hundreds of the guesses were
wrong-to determine what the admin
istration's expenditure policy contem-
plated. Information was not submit
| ted with the estimates. Shifting
from war to peace basis is largely
an administration problem. But it
was evident that the executive de-
partments lacked a definite admins
tration program for it's accomplish
ment. 1t was necessary for the sew
eral appropriations committees to de-
velop this information through hear
ings, Investigations and independent
analysis. "a
"By cutting in this direction and
that direction, almost $4,000,000, 200
was eliminated from the original and
supplemental estimates.
Furthermore, this fact with re-
spect to the administration expendi-
ture program for 1921, is even more
startling. If congress allowed for the
fiscal year 1921 all the funds which
were requested by the administration
in the estimates already submitted
and which call for approximately S5,-
600, 1000, ,000-the government would
probably close the next fiscal year in
worse condition than we will end
the current fiscal year.
Definite Plan Lacking
"Glance at the estimates and the
reason is obvious. They reveal, in
the staggering amounts again re-
quested the lack of any definite plan
of retrenchment.
at is premature to forecast with
any degree of accuracy, the amount
which congress will disapprove in the
requests of the administration which
approximate $5,00O,oo0o00. TIE last
figures, however, on the several ap-
pronriaticn bills which have been re-
ported out of appropriation commit
toes, indicate .Snt the total savinq' will
80.