The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-12-11
North DakOtan Would Put
Up Import Bars to Help
Z. s. Farmers.
BANK CREDITS NEAR END
Relief From War Finance
Corporation Dubious as Wool
and Wheat Pour Into L. s.

New YORK Hernld Bureau.
Washington. ID. G.. Dec. 10.
The business world was warned ii
the Senate to-day by leaders of both
| political parties that taxes both OH in
! comes and excess profits must be paic
! into the Treasury on December Is. be-
cause of a prospective national deficit
Of nearly $1.250. 900, 900
! Senator McCumber IN. D., Repu5-
! Lean, acting chairman of the Finance
Committee; Senator Smoot (Utahl
Republican, member of the committee
and Senator Simmons IN. c., Demo
crat, ranking minority member and
that in their Judgment the financial in
stitutions of the country which have
been seeking postponement of income
tax payments and notifications in ex-
cess profits taxes because of reduction
in inventoried value of their products
should understand clearly that Con-
gress Is not to take any action.
Their statements were made in de-
bate after a formal address by Sena-
tor McCumber presenting in detail the
conditions Of the Treasury's financial
situation as he views it, showing that
even with the tax payment of an esti-
mated total of $3.50, ,OOo.0o0 on Decem-
ber Is. the Treasury faces an immedi-
ate deficit of s1,229,9S1, ,765.
ssDn vo,, ir,tnrd IN hold a t,aofipv ~
the Finance Committee and take formal
action2' asked Senator Simmons, who
had learned that his North Dakota COL
leagues address was in explanation OF
a meeting held by Republican members
Of the committee yesterday.
Believes I'm Telling Reasons.
Senator McCumber said he hoped to
II II was considered necessary. but
added that he thought in view Of the
fact that only four days remained in
which postponement Of taxes could
be authorized the situation should be
the position of Republican Senator'S
who oppose postponements could be
understood clearly.
"In Justice to the Treasurys needs" 4"
said Senator McCumber, II do not be-
lieve there ought to be any remission
Of tax payments"
II quite agree with you" answered
Senator Simmons.
Every one should know that it can
not be done" interrupted Senator
Smoot. "and that fact should be en-
phatically emphasized
In presenting his statement OF the
financial situation Senator McCumbcr
said individual members OF the Finance
Committee have been worked over
time i'm receiving delegations who in
presenting their appeals for remedial
action by Congress are reflecting the
deplorabe situation that Is general
throughout the country"
There are two features of the situa-
ton where the demand is for immediate
relief" continued Senator McCumber.
''The first of these and the most i'm
portant is our agricultural collapse;
the second. the heavy inventory losses
due to rapidly falling prices. for which
relief is sought by postponing the De-
cember Is instalment OF the tax on 1919
profits and income and by allowing the
inventory losses of 1890 to be offset
against the profits of 1919 TO that ex-
tent, reducing the amount of the De-
cember, 1920, instalment.
while no one can speak for the final
action OF the committee or of the SEN
ate or the House on these proposals 1t
Is eminently proper and TO my mind
most urgent that the taxpayers directly
interested and the country at large be
informed at the earliest possible mo-
ment of the present financial situation
of the country, to the end that they
may exercise their own judgment as to
the probability or possibility of securing
the relief demanded. This is especially
true as to the demand for the postpone
ment OF the last instalment of taxes,
which falls due December 10.
shows Condition OF Treasury.
II wish, therefore. to present a most
general statement of the condition OF
the national Treasury. its immediate
obligations and its cash assets to meet
them Amount OF cash In Treasury De-
cember 6. 1870. s16o,OiS,2 ,235: December Is
tax instalment. estimated. $4,000, 90;
total $50 ,0lS,235.
Turning now TO our immediate liza
bilities Outstanding certificates matur-
ing December 10. 1920, and January 3-15.
1921. total st,140,0Oo,ooo.
"Thus II every dollar of the Decem-
ber Is instament Is paid In full and use
is made OF the last cent in the Treasury,
excluding the comparatively small
amount that will be secured from gen.
arat internaI revenue SOURCES and which
will be far more than offset by the
amount paid out for general govern
mental expenses, there would still be
left by January Is past due obligations
Of s329, 1881, ,765.
But even that deficit is based on the
assumption that the Treasury Is niiked
dry-is left bankrupt. In making his
calculations and estimates the Secretary
of the Treasury places as the minimum
of safety cash on hand $3.50, 10000.
~Thsrefore, 10 keep the Treasury on