The Washington times., 1920-10-21
BILLION PARED
FROM BUDGET
Government Estimates for 1921
Get Pruning Knife Before
Going to Congress.
BY w. II. ATKINS.
International News Service.

International News Service.
Uncle Sam will make u 81 ,OoO. .OOO,-
600 cut in his budget for next year,
The 1927 estimates Of Government
expenditures are being closely pared
down, and before the figures are
put In final form for submission to
Congress the reductions may even
exceed the billion mark.
WAN FORCEs CUT.
Dissolution OF was estsbl shine nj =
and varied emergency projects. and
the consequent decrease in Govern
ment personnel have made poss bic
lower estimates in all branches, The
pa ssing OF Federal rail control. alone
will effect a considerable lowering in
the Governments deficit.
Secretary OF the Treasury Houston
expects soon to have, In final form,
estimates now being drafted by
Cabinet heads, but the tentative hg-
uros already forecast an Administra-
tion demand upon Congress for APP
proximateiy 5000, ,oOo.oo0 to run the
Government one year, The military
and naval program combined. includ-
ing new building programs, may call
for an outlay of not legs than Sl.500,-
000, 900.
ARMY DEMANDS HEAVY.
support OF the United States army
and provision for pay to the national
guard establishments. probably will
require at least one billion dollars.
Heavy increases in the naval building
program may result in a larger oc-
mand from Secretary OF the Navy
Daniels than was asked OF the last
Congress. but this demand will go be-
yond the half billion figure. rather
than below that figure. The Secre-
tary of the Nays program may not
be known until Congress IL actually
assembled in December.
Settlement Of the Governments
obligations to the railroads under the
guaranty clauses vr the new trans
portafion act probably will entail an
outlay of public funds amounting to
$500. .OOO. 900. Officials consider this
an approximate figure. as 1T will be
several weeks before the amount Of
guaranty due the roads can be ac.
curately computed and certified to
the Secretary Of the Treasury. This
delay is partly due to the inability
OF the railroads to submit complete
tables OF their earning and msinten-
ance records.
s25OyOOeyOOe ALREADY PAID.
The Treasury Department today
estimated that the demands on the
Treasury for the current fiscal year
on account OF the railroads will bc
not less than 81. .OOO. 900 900. but of this
amount about $3.50, ,O0O, 900 has already
been paid.
Included in. the Treasurys plans
for next year is an order though
substantial retirement Of outstand-
ing Liberty bonds and vi. .ory notes.
This policy wilhbe firml- adhered to
by Secretary ofNthe TIRE sury Hous-
ton. 1t il significant that he predicts
that the Liberty bonds may reach par
In the future not far distant. He is
confident of steady rise in the value
OF these issues.
WILL REDUCE Z. 8. DEBT.
Latest figures today showed that
Secretary Houston's predictions that
the Treasury policy, will make pos
sible heavy reductions in both the
gross debt and the floating debt, are
being fulfilled. The gross debt now
stands at $4,000, ,OOO. 900. represent
ing a reduction OF $1,000. 900 900 in
little more than one year. The float
ing debt amounts to $2,347, 100000, or
about 81 900. 900, 900 less than on Sep
tember 1 last year.
Detailed figures on the gross debt
of the United States reveals that 1t
includes $4,000 ,00O. 900 of Liberty
bonds. $4,000. 900 900 Victory notes,
$500 900 900 war savings certificates
and s2,347 600 900 loan and tax certifi-
Gates
Treasury officials said today that
their future calculations take into ac-
count the fact that within three
years there will become payable
81 soc, 900. 900 of Government obliga-
tions. OF this huge sum the Victory
note issue falling due in that period
represents $500, 900, 900,
CUT IN TAXEs UNLIKELY.
The Administration will go before
Congress, with program now
definitely agreed upon and having the
stamp Of President Wilson's approval,
to keep the taxes high enough to meet
the future pressing demands upon the
Secretary Houston will
enter strong defense of his present
hscal policy. which contemplates keep
ing receipts from taxes and other
souIces high enough to meet current
bills. These bills. OF course. include
interest on the public debt and sink
ing fund charges. and in addition a
vast sum Is needed to retire the ma
TONS floating debt and pay off the
Victory notes when they mature in
1929.
Largest payments on the Govern
ment's debt to the railroads will be
by next spring, and in the
months following a steady and more
rapid reduction OF the floating debt
viii be possible. Secretary Houston
asserted. BY next summer the float
ing debt will have been cut down to
$4,000, 900 900 the Secretary estimates,
with the possibility that 1t may be
reduced to as low as $1,000. 100000
RIG v LOAN REDUCTION.
Treasury financing also figures that
by the end OF 1922 the Victory loan
will be reduced by $500, 900, 900 as n
result OF sinking fund operations.
Congress may be asked to authorize
the Treasury, under proper regula-