Evening star., 1920-12-07
Continued from First pase.)
pecially Of the floating debt but
more particularly to the improved
distribution Of government Sc

more particularly to the improved
distribution Of government se-
curities among permanent in
vestors. The cessation Of the
governments borrowings except
through short-term certificates OF
Indebtedness has been q matter Of
great consequence to the people
of the country at large as well 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 progressive withdrawal OF the
Treasury from tho domestic credit
market and from . position OF
dominant influence in that mar
ket. The future course will nee
essarily depend upon the extent
to which economies are practiced
and upon the burdens placed upon
the Treasury, as well az upon in
dustrial developments and the
maintenance of tax receipts at q
sufficiently high level.
Must Ffx Fiscal Program.
The fundamental fact which at
present dominates the govern
ment's financial situation is that
seven and q half billions Of its
war Indebtedness mature within
the next two and half years. OF
this amount two and q half bill
lions are floating debt and five bfl-
lions victory notes and war saw
inss certificates. The fiscal pro-.
gram Of the government must be
determined with reference to these
inaturitiea. Sound policy demands
that government expenditures be
reduced. to the lowest amount
which will permit, the various
services to operate efficiently and
that government receipts from
taxes and salvage be maintained
sufficiently high to provide for cur
rent requirements. including in
terest and sinking fund charges on
the public debt. ana at the same
time retire the floating debt and
part Of the victory loan before
maturity. With rigid economy.
vigorous salvage operations and
adequate revenues from taxation q
surplus Of current receipts over
current expenditures can be real
lied and should be applied to the
floating debt. ALI branches OF the
government should cooperate to
sse that this program 10 realised.
cannot overemphasize the neces-
sity Of economy in government
appropriations and expenditures
ana the avoidance by the Congress
Of practices which take money
from the Treasury by indefinite or
fevolvfng fund appropriations.
The estimates for the present year
show that over . billion dollars Of
expenditures" wera authorized By
the last Congress in addition to the
amounts shown in the usual COM
piled statements Of appropriations.
This strikingly illustrates the i'm
portance OF making direct and spe.
cific appropriations.
The relation between the cur.
rent receipts and current expendi-
lures Of the government during tho
present fiscal year. a. well a dur
ing the last half Of the last fiscal
year. has been disturbed By tho
extraordinary burdens thrown upon
the Treasury BY the Transports
ton act. In connection with the
return Of the railroads to private
control Over $soo.ooo.oo has al
ready been paid to the railroads
under this aet-$s5o. .ooo. 900 during
the present fiscal year: and 1t 10
Estimated thst further payments
aggrsEating possibly Ss5o.o0o.ooo
must still be made to the railroads
during the current year. Il 10 oh.
vious that these large payments
have already seriously limited the
Euvernmsnrs pr0gress in retiring
the aossing debt
Aev1sisn of TAX Lawn.
Closely connected with this. It
seems 70 me. 10 the necessity for
an immediate consideration Of the
revision OF our tax laws. eimpiia-
cation Of the income and PROFITS
taxes has become an immediate
necessity. These taxes performed
an Indispensable service during
the war. The need for their SIM
pltfcatten. howevsr. Il very great,
In order to save the taxpayer To-
oouvenisucs and expense and In
ordsr to make his liability more
certain and definite. Other and
more detailed Recommendations
with regard 70 taxes win no doubt
be laid before you by the Score.
tasy Of the Treasury and the com.
missioner Of internal revenue.
Il 10 my privilege to draw to the
svktention Of Congress for very
sympathetic consideration tho
problem OF providing adequate ia
caIities for tho care and treat.
ment Of former members Of the
go ~A-V