The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1920-12-10

the arbitrary Napoleonic DEGREES
which involved us in what we know
as the war of 1872. I urge you to con-
slider that the display of an immediate
disposition on the part of congress to
remedy any injustices that may have
shown themselves in our own national
life will afford the most effectual off
set to the forces of chaos and tyranny
which are playing SO disastrous part
in the fortunes of the free peoples of
more than one part of the world. The
| United States is of necessity the sam
! pie democracy of the world, and the
triumph of democracy depends upon
1 its success
Urges Early Budget Law.
| Recovery from the disturbing and
sometimes disastrous effects of the late
war has been exceedingly slow on the
other side of the water and has given
| promise, / venture to say of early com.
| pletion only in our own fortunate
country, but even with us the recovery
| halts and is impeded at times and
| there are Immediately serviceable acts
! of legislation which it seems to me we
ought to attempt, to assist that recov-
cry and prove the indestbuctible recup-
erative force of great government Of
the people. One of these is to prove
that great democracy can keep house
| as successfully and in as businesslike
| a fashion as any other government It
seems to me that the first step towards
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 neceSsitate unreason-
able taxation, in other words work
able budget system, and I respectfully
suggest that two elements are essential
to such system; namely, not only
that the proposal of appropriations
should be in the hands of single body
such as single appropriations COM
mittee in each house of the con-
gress, but also that this body
should be brought into such co-opera-
ton with the departments Of the gov
eminent and with the treasury of the
United States as would enable it to
act upon a complete conspectus of the
needs of the government and the re-
sources from which it must draw it's
income.
Explains Veto Action.
I reluctantly vetoed the budget bill
passed by the last session of the con-
gress because of constitutional objec-
ton. The house of representatives
subsequently modified the bill in order
to meet this objection. In the revised
form I believe the bill coupled with
action already taken by the congress
to revise its rules and procedure fur
nishes the foundations for an effective
national budget system. I earnestly
hope that one of the first steps taken
by the present session of the congress
will be to pass the budget bill
Finances Show Improvement.
The nations finances have shown
marked improvement during the last
year. The total. ordinary receipts of
1854, 100000 for the fiscal year 1920
exceeded those for 1919 by $1,542, O0O,-
900, while the total net ordinary ex-
penditures decreased from $1S,514 OOO,-
600 to $6,403, 100000. The gross public
debt. which reached it's highest point
on Aug. 81, 1919, when it was $26, $780,
100000, had dropped on Nov. 80, 1920,
to $24, It's, 100000. There also has been
marked decrease in holdings of gov
eminent war securities by the banking
in the amount of bills held by the fed
eral reserve banks secured by govern
ment war obligations. This fortunate
result has relieved the banks and left
them freer to finance the needs of agri-
culture, industry and commerce. 1t
has been due in large part to the re-
duction of the public debt, especially
of the floating debt, but more particu-
larly to the improved distribution of
government securities among perman-
ent investors. The cessation of the
governments borrowing except thru
short term certificates of Indebtedness
has been matter of great consequence
to the people of the country at large,
as we'll as to the holders of Liberty
Bonds and Victory notes, and has had
an important bearing on the matter
of effective credit control. The year
has been characterized by the progress
sive withdrawal Of the treasury from
the domestic credit market and from
position of dominant influence in
that market. The future course will
necessarily depend upon the extent to
which economics are practised and up
on the burdens placed upon the treas
ury, as well as upon industrial develop
ments and the maintenance of tax re-
ceipts at a sufficiently high level.
Urges Strictest Economy.
"The fundamental fact which at
present dominates the governments
financial situation is that seven and
half billions of its war Indebtedness
mature within the next two and a half
years. OF this amount, two and a
half billions are floating debt and five
billions Victory notes and War Saw
ings certificates. The fiscal program
of the government must be determined
with reference to these maturities
Sound policy demands that the gov
eminent expenditures be reduced to
the lowest amount which will permit
the various services to operate eff
GENTLY and that government receipts
from taxes and salvage be maintained
sufficiently high to provide for current
requirements, including interest and
sinking fund charges on the public
debt, and at the same time retire the
floating debt and part of the Victory
loan before maturity. With rigid econ
omy, vigorous salvage operations and
adequate revenues from taxation, a
surplus of current receipts over cur
rent expenditures can be realized and
should be applied to the floating debt.
All branches of the government should
cooperate to see that this program is
realized
Appropriations Cut Held Needed.
/ cannot over emphasize the neces-
sity Of economy in government appro-
priations and expenditures and the
avoidance by the congress of practices
which take money from the treasury
by indefinite or revolving fund appro-
priations. The estimates for the pres
ent year show that over a billion dol
lars of expenditures were authorized