The Seattle star. [volume] (Seattle, Wash.) 1899-1947, 1920-12-07
litEcUyERx FROM WAR
SLOW

MOW
Recovery from tho disturbing and
|nometim,a diHaAtro>i- Effects OF tho
hate war has been exceedingly slow
,on the other side OF the water and
thaa eiy~n pfofnir-. venture 10 say.
sof early complexion only in our own
fortunate country. but evrn n Ia. re-
,oov-ry haitr and IL lmpeded a, times.
There are Immediately reryiccsbis
saots Of legislation which Il seems TO
pne We ought 90 attempt. 20 assist
THAT recovery ana prove the indie.
ss,ruetiDle recuIrratise force OF d
grsat governments Of the people.
one OF these Is 10 prove that a
tgrcat democracy eau keep house as
successfully aud in an business ke
Ia fashion as any other government
u seems TO me that the first step
towards proving this IL 10 supply
SurseiYes with a syrseniatia method
VI handling our estimates and en-.
penditur~s and bringing them 10 the
point where they win not be an un,
necessary strain upon our Income or
necxsitats Unreasonable taxation. Ia
other words. q workable budget nyr~
tern. and | respectfully suggest that
two elements arc e-n~ntiai to such a
system. namely. not only that the
proposal o. appropriation should be
In the hands or a single body auch ~
q single appropriations committee IN
each house Of the congress. hut slro
sk.t ss.s. l.nlt.. .ss...f.t - A-r..-s.f la .,
such cooperation with the dcrprt.
ments % the government and with
the treasury Of the United States a.
would enable u 20 act upon . com
plstc couspecius Of tho nerds ~ the
government and tho resources from
which Il must draw ia income.
ADVISES PASSAGE
or BUDGET Hill.
I reluctantly vetoed The bssirrt
bin passed By tho last se@ricn of tho
congress uecauso of . constitutional
objection. The house n r~vrrrsnta.
tivc@ subsequently modified tho hill
In order 10 u-et THIS oltccfsou. In
tho revised form 7 believe thai tho
bill. coupled with action atrvsldy taken
BY txc congress To revise its rul~u
and procedure. furukrbes the foundhs.
tiossr Tor an cffecfHi bUiget system
1 carnast,y bope. therefore. that 90,
81 the flint ssepr taken by the prrr-
ert s<sston Of tn congrvssvutn be 10
pass the budget bin
NATIONS tINANruc1
anlOW IMPROVEMENT
Tho nafion's finances hxrs sh0vn
narkcd Improvement during ths past
year. The total ordinary rec~spsr cs
$3.50 .oee. 600 Tor tho fiscal year 1880
exceed thoee tor 1918 hy oista. eoa..
900. while tho total mt ordinary en-.
p~ndftur~s dccrua~-d from sfasfz..
0os 900 10 Ss.4es. 900 ga Tho gross
public dakt. which vvAnhcd iss high.
est point on August al. 1915. whom "
Was ec<.ss<. 80 eco. had DECREASED on
November 81 70 tss.f7s.eoo.o 900.
There has alup bccn = marked d..
crvae IN hoIdingz Of Eov-rusnent war
securities By tho banking institutions
of tho country. ~ wen a. In the
smosfpt Of bilis held By the federal
reserve banks secured ~ govern.
ncnt war oblignxions
This fortunate result has relieved
the banks and lift thrm fr~cr TO
finance the needs Of Agriculture. In.
dustry and commerce. II has been
duo In large part 10 The reduction
Of the pubic DEBIT. especially Of the
floating debit. hut more particularly
to the improved distribution Of gov.
eminent securities among permanent
investors The cessation Of the gov.
ernment's Borrowings except thru
mort term certificates of indob,id
ness has bern a matter Of great con
sequences TO tho peopbo Of the coun
try n large. AZ well as TO the hold
ars az Liberty bonds and Victor,
notes. and has an important bcafins
on the matter Of effective credit con.
troll.
The var has born characterized
BY the progressive withdrawal OF the
treasury from tho dorncs1ic credl,
market and from a position Of doU.
lnant Influence In that market. The
future courne will necessarily de,
pend upon the extent TO which eoono.
mics arc practiced and upon the bur
dcns placed upon tbs treasury M
well a. upon Industrial develop
nents and tho maintenance OF tar
receipts at sufficiently high level
The fundamental fact which nj
preseAt dominates the government e
financial situation L. that seven and
a half billiona Of its war Indebtedness
mature within the next two and a
half yeara OF this amount two and
half billions arc floating debt and
five billion Victory notes and war
saving certificates
Tho fiscal program Of tho govern.
mcnt must be determined with ref
erence to these maturities. Sound
policy demands that government ex.
pcnditurcs be reduced 10 the lowest
amount which viii permit the var.
ious services TO operate efficiently
and that government receipts from
taxes and salvage be maintained saif.
Gfsfenfft hinh n prn.ftl. D.