The united opinion. [volume] (Bradford, Vt.) 1881-1970, 1920-12-31
U. S. FACING
HUGE DEFICIT
Houston Warns Committee Not to
Increase Burden of Treasury;
Indicates Bonus Opposition.
NEW BURDENS PREDICTED.
Secretary of Treasury Outlines Fin
ance Problems to Senate Commit
tee-He Declares We face a
$20O0,0oOooC Deficit This Year.

notwithstanding of the
Treasury Houston, appearing before
the Sena Finance Committee, de
clared himself gainst the restoration
of the War Finance Corporation, pre-
dicted a deficit of S2,10G,000,O00 in
government finances this fiscal yeal
and $1,5OO,OOOCO0 the coming fisca
year opposed he extension of the
talked of billion-dolar credit to Ger
many, and expressed the view that
new sources of revenue must be found
and no new burdens imposed on the
treasury. The. estimated deficit of the
current fiscal year was $10O000O,00O
more than had previously been esti-
mated.
While he did not give an expression
on the bonus bill, Secretary HOustOn's
statements regarding the condition Of
the treasury and the prospects for
the evenues were looked on by mem
bers of the committee as clearly indi-
eating his opposition to any cash bonus
plan. He was called before the COM
mittee primarily on the bonus bill, but
he did not complete his statement and
will appear before committee again
Monday.
The secretary's opposition to the
War Finance Corporation was inter
preted by senators as meaning a veto
of the bill to restore that body recently
passed by Congo :. And his indirect
opposition to the bonus is accepted as
meaning that a cash bonus plan will
not be approved by Congress this ses-
sion.
Referring generally to legislation de-
signed to aid agriculture by means
proposed in Congress, he said: "Any
one that holds out to the formers the
idea that these efforts will return tFeir
war prices is their worst enemy"
Only a few days ago Senator Nc
Cumber, acting chairman of the Fin
ance Committee, Sc before the senate
in speech figures which showed the
need for economy. After that speech
many senators said they were con-
cerned over the governments fiscal SIT
uation and thar they would insist on
economy at every possible turn. The
data given by Secretary Houston deep
ened the impression already made on
senators as to the necessity for holding
tight the purSestrings.
While much of the information given
by Secretary Houston was contained
in his annual report, ii attracted the
more attention because Of the fact
that he presented it to the committee
verbally.
After fOrecasting a deficit in the
COuntry's revenues of S2,10O,000000
this fiscal year AMI another deficit of
81 ,5OOOO0,OOO the next fiscal year, Mr.
Houston said new ways and means
must be discovered TO find money, and
no new burdens added.
Mr. Houston said that aside from
the public debt, the ordinary receipts
for his year would exceed ordinary
expenses by about SSOO,OOOOO0 and
next year the excess would be $780,
100000 These sums, he said, will fail
to take care of the interest on the ma
fionaI debt, which is about $1,OO0,0OO,-
600 annually. In addition the interest
on the floating debt must be provided
for and sums laid aside annually to
retire the public debt.
I'VE face, in addition, the fact that
many sources Of revenue are declining,
so we will have ~ look around for new
sources To tap without placing greater
burdens on the treasury" the secre-
tary told the committee.
As Secretary Houston proceeded
with his discussion on the national in
debtedness. Senator Smoot said: 1T
will take us thirty-three years to pay
off our national debt under existing
law"
Discussing the War Finance Cor
poration, AIr Houston said:
Il have been opposed to the resump-
ton Of the War Finance Corporation.
American exports are larger now than
before or during the war"