New-York tribune., 1920-01-12
New Liberty
Loan Needed If
Taxes Are Cut
Country Will Have to FL
nance Reduction in In
come or New Expendi-
lures, Says Treasury Head
National Debt Decreased
Revenue Sufficient to Re-
duce Burden Unless Con-
gress Incurs Obligations
Ne,O York Tribune
WaShi,,uton Bursdu

w USHUVtOU 0uT000
WASHINGTON, Jan. 11.-A new
Liberty loan will have to be foated if
Congress reduces taxation to any con-
siderable extent, Secretary of the
Treasury Glass announced to-day.
The government debt is being re-
duced, Secretary Glass said in state
ment, but if Congress should increase
appropriations or reduce taxation an
other loan must be foated to meet the
s4,000,00O000 expenses for the year.
Secretary Glass's statement follows:
at will no doubt be recalled that on
September 8, in announcing an issue of
tax certificates, l made certain state
ments concerning 'the governments
financial position and prospects for the
balance Of the calendar year, and said
that the turn of the tide had come.
Now that the figures at the years end
are in hand it appears that my most
sanguine expectations have been more
than realized. On the basis of Treas
ury daily statements the governments S
gross debt on August 30, 1919, was
s26, ,596,701 ,648.01.
Reduction in Nations Gross Debt
"On December 81 it amounted to
$25, 1897 ,O78, ,807.38, reduction of $780,
622, ,840.63.
"The floating debt (unmatured Treas
ury certificates of indebtedness) on
c<
December 81 it amounted to $3,578, 1885,
800.37, reduction of $622,653, 3,25002.
"A portion of the floating debt re-
quiring to be refunded ESQ., called loan
certificatesD on August 80 amounted
to $2,012,387,500. On December 81 it
amounted to $1,326, ,661 600, q reduction
of $685., ,726,500.
"The loan certificates outstanding on
December 81 were Of issues maturing
January 2, January 15, February 2 and
February 16, 1920, and have been or
will be paid in cash on hand December
81 and from the proceeds Of the sale
Of tax certificates thereafter issued,
thus concentrating the Treasury's plan
for financing the unfunded portion Of
the war debt in such way as to avoid
any large funding operations.
Future Depends on Congress
Gas to the future, 1t may be stated
positively that unless Congress should
enter upon new fields Of large expendi-
ture not included in the Treasury es-
Inmates, or should make a reduction in
the amount Of taxes in addition to the
reduction made year ago upon the
recommendation OF Secretary McAdoo
from about $8,000,000,000 to about
81, 900 900 900, we may look forward con-
fidcntly to the retirement Of the float
ing debt out Of the taxes provided by
existing law and miscellaneous receipts
coming within the general head of war
salvage (although further issues Of tax
certificates in diminishing amount will
be necessary from time to time in tho
intervals between income and profits
tax installment payments), and to the
gradual reduction Of the funded war
debt through tho operations Of the
Liberty loan bond purchase fund and
sinking fund already created by law.
"On tho other hand, should Congress
embark upon new fields Of large expen-
diture or further reduce taxes 1t will,
As 1 have already indicated, be clearly
necssssry to revise the Treasury's
plans Ind call upon the sounsry to
nnancs the nAsulting deficit by the is
sue 81 3 1nw Mberty ae12F