Great Falls daily tribune. [volume] (Great Falls, Mont.) 1895-1921, 1920-03-05
Elk Secretary Proposes
Delay of Two Years in
Starting Sinking Fund
as One Way to Cut.
Would Fund European
Inability to Pay Interest
Till 500 Million Is
Forthcoming, Later.

Washington, March Am immediate
billion dollar reduction in federal taxes
was suggested in statement issued
here by William G. McAdoo. former Sec
retary of the treasury. The present tax
| burden is too great. he said. and is
having an injurious effect on busi-
/ nesss"
! Mr.. McAdoo proposed that collection
OF a fax to establish sinking fund for
retirement of the war debt. which was
recommended by former Secretary Glass
/ TO begin with the fiscal year 1920, be
| postponed for two years, and that the
deferred payments OF European interest
be funded until Europe is in position to
| pay its interest charges.
The financial policies of the nation
as embodied in future congressional
legislation said Mr.. McAdoo, should
realize the utmost economy in expen-
diture and might well fund in long
term bonds S1,oOo,0OO000 per annum
for two years of the amount now raised
by taxation,
Can Iusgle $3.50. 1000. 900 Out.
Under the laws, a tax to establish a
one per cent sinking fund to retire
bonds now outstanding is to be col
iected beginning with the fiscal year
1920. This might well be postponed for
at least two years and thus reduce the
tax burden by S250,oOO,OOO annually.
There. too. is the debt which Europe
owes us and which now amounts to
about ten billion dollars. If the economic
restoration of Europe had proceeded far
enough SO that Europe could now pay
interest on this debt tas she will be
able TO within Il few years. We should
have an income of s500,0oO, 900 from
this source. But that is not now avail
able. Why not fund that amount against
the day when it will come back to us?
BY postponing for two years the estab-
lishment of a sinking fund and funding
the deferred payments of European in-
terest we should cover $50 600, 900 of
the billion dollars by which our taxation
might be reduced. BY discounting pur-
chases of liberty bonds for retirement
under provisions of existing law. the
treasury would be relieved of large
burden now reflected in the floating
debt and which otherwise will have to
be made up by taxation 1t would seem
that reduction of our tax bill for the
next two years in this manner could be
accomplished, and that it would involve
the issuance of additional bonds to the
extent Of probably not more than one
and half million dollars.
Doing Lot of Damage.
Il trust that the ways and means
committee of the house of repre-
sentatives. in which all tax measures
must, of course. originate. will consider
this question III its broad relations to
our general economic welfare The i'm
mediate burden of taxation is too great
1t is having an injurious effect on bust
ness. II is contributing factor of large
proportions in the high cost of living.
Its inevitable tendency is to stifle new
enterprise and to throttle initiative. 1t
is both unscentific and inequitahle. In
view of the approaching decline in our
export trade with the inevitable reduc-
tioa in the volume of business in the
country, it will become doubly import
ant to revise and to reduce taxation in
order that business may not have to
carry an unnecessary tax burden
throughout this period of readjust-
ment