The Washington herald., 1920-12-11


Demands for Immediate Relief.
There are two features of the
general situation where the demand
is for immediate relief" Senator Me-
Cumber said. The first and most
important is our Agricultural col
lapse. The second is the heavy in
ventory losses due TO rapidly falling
prices, for which relief "a sought
by postponement OF the December
Is installment of the-tax- On 1918
profits and incomes and BY allowing
the inventory losses OF 1890 to be
offset against the profits OF 1919.
and, TO that extent. reducing the
amount OF the 1920 installment.
1T is not possible for anyone 10
speak for the final action Of the
Finance Committee on these pro-
posls. IL is eminently proper and.
to my mind, most urgent that the
taxpayers interested directly. and
the country at large. be Informed
Of the present financial condition OF
the nation TO the end that they may
exercise their judgment as TO the
probability or possibility of secur-
ing the relief demanded This u
especially true as TO the demand for
the postponement OF the December
Is tax payments"
After a detailed analysis of the
figures given above, Senator Nc
Cumber continued:
Must Provide for Dehcits.
ESTIMATED receipts and disburse-
ments for the year ending June 80,
1891. do not include deficits which
must be taken care Of during the
coming year. The President has
estimated the railroad operation
deficit at $3.50. 900. As nearly as
1 can ascertain this deficit will be
nearly double that amount. or ST.
l2S.OOo 900.
The report OF the Secretary OF
the Treasury shows that within the
period of two and a half years, end
ing May. 1898, $500. .OOO. 900 OF gov
eminent war obligations will be-
come due and payable. II we carry
the amount Of loan certificates ma
turing up to September Is. 1891. the
total will be sl.7S2.OfO,O 900. II We
include loan certificates TO become
due within the year We get a total
of s2,62s. .452,95o. Victory notes to
the amount of S4.25O. .OOe. 900 will
mature on May 20, 1928. and on
January / of the same year $780,
100000 in War Savings certificates.
1T is worthy of note that The
Secretary of the Treasury bases the
estimate Of deficit which will exist
on June 30. 1922. on the assumption
that our revenues will be s4.S5s,-
$4,000, or nearly $4,000. .OO0.O00
Revenues May Fall on.
Il do not wish TO take a gloomy
view Of our industrial prospects, but
IL 1921 as a whole is not a most de-
cided Improvement over the last two
months Of 1920. the revenues win
not be half that sum. With these
great deficits both near and tar
staring us in the face. we arc Striv-
ing to find some way by which we
can relieve the agricultural sttua-
tion. We hope for some kind Of re-
lief through the revival OF the ac-
tivities of the War Finance Corr
poration. While wheat and wool are
pouring into this country in unpre-
cedented volume. driving down the
price of the American product TO
half the cost OF production. we are
about to ask this War Finance Cor
poration in some way to finance tho
bankrupt countries OF Europe 50 we
can export our wheat TO them.
IF We were business men aud
would follow our business instincts
we would at least close the intake
to our tank while we were strug-
Cling TO empty the tank through the
spigot.
The testimony Of Gov. Harding.
OF the Federal Reserve Board. Is 70
the effect that the banks have ex-
tended their credit as far as they
can safely do so; that IL they were
to further extend credits, and pres
ent conditions should continue. g.
might endanger our whole banking
system. Now. IL these banks carr
not supply associate banks with
money suficient TO tide over the
Agricultural depression. how CO.
these same banks furnish the me
10 foreign people 20 buy thesT
products7 For. after all. wb
farmers must have and
country banks must hav<
and the credit that is
cash somewhere I'M
II not a very rc1isf
-.