The Washington herald., 1920-11-22
81, 200, ,OOO, 900 in ObIga-
tions Must Be Met IN SIX
Weeks by Treasury.
1919 RECEIPTS NEEDED
Secretary Declares Business
Men Have Had Time to
Adjust Debts.

Inc governments VIII pt COuptAAON
TO meet special obligations total
ing approximately fL2oo. 100000
within the next six weeks. and so
will not be able to permit business
men and others to defer payment OF
the fourth instaIlment OF income
and excess profits taxes due Decern-
Der 10. according TO a statement
issued by Secretary David +. Hous-
ton yesterday
Thousands OF letters from men
in practically every line Of business
requesting such relief have been
received by the Bureau of Internal
Revenue.
The suggestion for deferment OF
payment was given publicity re-
Gently by Daniel c. Roper, former
collector of internal revenue, In n
speech at Binghamton, n. Y where
he asserted that financial disaster
in many cases could be obviated
only by such a procedure"
Treasury Issues ststement-
The Treasury statement author
lied Saturday points out that tax
payers already have had twelve
months OF grace as TO the Decem-
ber instaIlment, which is the last
payment of taxes for the year 1913
They could have made provision for
the payments by setting up re-
serves TO meet il or purchasing
Treasury certificates of indebted
ness"
The government. il is explained.
could not postpone the collection Of
the December instsllment without
borrowing money through the is
suance of new Treasury Certificates
! in prohibitive amounts and at high
rates of interest
The Treasury Departments state
ment in part is as follows:
Taxpayers have already had near
tly twelve grace as to this
final instaIlment and have had every
fcpportunity &c make provision for its
Rpsyment by setting up the neces-
ssry reserves or purchasing Treas
ury certificates OF Indebtedness.
Financial Program I.elsstic.
The Treasury Department. more
over has adjusted its financial pro-
gram to the tax payment rates pro-
vided by the revenue act of 1918.
There are outstanding nearly $780,
ooo.oeO Of certificates maturing on
December Is. 1929. and $500. 600. 600
/. additional mature on January , and
January Is. 1921. On December Is
there will also become payable the
semiannual interest on the First
Liberty Loan and and the Victory
Liberty Loan, aggregating about
4 S14O. .OOo. 900.
ITO meet these heavy maturities
Of principal and interest and at the
same time provide for the current re-
ouirements of the government. Gu
larged as they are BY the extraordi-
nary burdens imposed upon the Treas
ury in connection with payments 20
the railroads. the Treasury relies
chiefly on the income aud profits
taxes payable on December Is. This
installment is not expected to exceed
$3.50, ,e9o. 600.
Impossible 20 Defer.
The Treasury must finance it's
further requirements, so far as they
are not covered by ordinary cur
rent receipts, through issues of
Treasury certificates Of indebted
ness. II would be impossible to
defer the payment of the December
instsllment of taxes without fore
ing the Treasury TO offer Treasury
certificates in prohibitive amounts.
Moreover, to extend the time for
the payment of the December IS
installmcnt would simply mean that
the Treasury would. in effect. be
financing private business. which
should provide for itself through
ordinary banking channels. IL neces-
sary. In this respect the proposal
is not different from those insist
emily made to the Treasury during
the past few months-that govern
, ment funSs be made available in
, various sections of the country TO
finance the holding Of commodities
or the export Of goods to Europe.
1920 Receipts Are 1919 Taxes
Tho suggestion that the net loss
provisions Of the revenue act Of 1918
be extended to the year 1890 is
equally impossible from the point Of
view Of the Treasury. Under the
present revenue law the Treasury
receives in the year 1920 taxes
based on the income and profits a
taxpayers during the year 1913.
The whole financial program a
the government requires that the
Treasury be able 10 rely upon the
! collection of these taxes. No
change should be entertained which
, would render uncertain the bulk OF
. the governments tax receipts and
perhaps result in heavy claims for
refunds with consequent increases
/. in the public debt and additional
| short term financing.
! There is. Furthermore, no reason
in fairness why taxpayers who
made profits in 1919 and became
liable to pay taxes on the basis OF
, those profits should now be per-
mitted TO throw upon the govern
, ment the burden of losses incurred
: in the conduct OF their own busi-