The Washington times., 1920-12-07

mocracy depends upon Its success.
RECOVERY is SLOW.
Recovery from the disturbing
and some times disastrous effects
OF the late war has been exceed
ingly slow on the other side OF
the water and has given promise.
! venture to say, of early COM
pletion only in our own fortu-
nate country; but even with US
the recovery halts and IL i'm
pedea at times and there ahs i'm
medistely seryicesble acts OF legis-
lation which II seems to me- we
ought to attempt, to assist that
recovery and prove the indestruc-
tible recuperstive force of a great
government OF the people. One Of
these Is TO prove that a great
democracy can keep house as sue
cessfully and in as businesslike q
fashion as any other government.
1t seems to me that the first step
toward proving this is to supply
ourselves with a systematic
method Of handling our estimates
and expenditures and bringing
them to the point where they will
not be an unnecessary strain upon
our income or necessitatc unrea-
oou@SAC t@Notfch, hh oN"SA "o'N"
q workable budget system. and
respectfully suggest that two ele-
ments are essential to such a sys-
tenn: namely, not only that the
proposal OF appropriations should
be in the hands of a single body.
such as q single appropriations
committee In each house OF the
Congress. but also that this body
should be brought into such CO.
operation with the departments of the
Government and with the Treasury
of the United States as would en-
able II to act upon a complete
Government and tho resources
from which II must draw its in
come. reluctantly vetoed the
budget bill passed by tho last ses-
sion OF the Congress because of
constitutional objection. The
House OF Representatives. subse-
ausntIy modified the bill in order
to meet this objection. In the re-
vised form believe that tho
bill. coupled with action already
taken by the Congress to revise its
rules and procedure, furnishes the
foundations for An effective ma
tional budget system. I earnestly
hope, therefore. that ono OF the
htrt btSps taHSH Wv tHc piVSS"S
session Of tho Congress will be to
pass the budget bill.
FINANCES IMPROVED.
The nations finances have shown
marked improvement during the
past year. The total ordinary re-
ceipts Of S6, Ss4. 900 900 for the fiscal
year 1890 exceeded those for 1919
by 1882, 900, 900, while tho total net
ordinary expenditures decreased
from 1881, 900, 900 to 6,403, ,o0o. 900.
The gross public debt, which reached
it's highest point on August 81,
1919, when II was S28,598, ,O00, 900,
had dropped on November 80, 1920,
to 324.175,00o.000. There has also
been q marked decrease in hold
ings OF Government war securities
by the banking institutions Of the
country, as we'll as in the amount OF
bills held by the Federal reserve
banks secured by Government war
obligations. This fortunate result
has relieved the banks and left
them freer to finance the needs of
agriculture. industry, and commerce.
1t has been due in large part to
the reduction OF the public debt,
especially of the floating debt, but
more particularly to the improved
distribution OF Government securi-
ties among permanent investors.
The cessation OF the Governments
borrowings except through short
term certificates of indebtedness has
been a matter OF great consequence
to the people of the country at
large, as we'll as TO tho holders OF
Liberty bonds and Victory bonds,
and has had an important bearing
on the matter OF effective credit
control. The year has been charac-
terized BY the progressive with
drawal OF the Treasury from the
domestic credit market and from a
position OF dominant influence in
that market. The future course
will necessarily depend upon the
extent to which economies are
prscticed and upon the burdens
placed upon the Treasury, as well
As upon industrial Developments
and the maintenance OF tax receipts
at n sufficiently high level.
MUST CARE FOR DEBT.
The fundamental fact which at
present dominates the Govern.
mcnt's financial situation is that
seven and half billions OF it's
war Indebtedness mature within
the next two and half years. or
this amount. two ard half bill
lions arc floating debt and five
N''"bys Victory notes and War
~ cNrtincates. Txe nsoaI
a .1fx>>SRf the Goveynmsnt must
" Yy2< 18th Sefsrenee to
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