Arizona republican., 1920-12-09

there will be a substantial excess shown by government receipts over government expenditures.
 An analysis of the government ex- penditures for the last fiscal year de- velops the fact that almost one-fifth of the Se.400, ,000, 900 paid out was spent in connection with federal control and the guaranty of earnings for the rail- roads. Only one department of the government-the War Department spent more than was used in connec- ton with the carriers. The war de- partments total. the record shows, was $1.611, 100000 against s1,o37, 100000 for the railroads.
 Discussing the war debt, and pro- gram for its retirement, MT. Houston says that within the next thirty months the government will have to pay off approximately $7,500,000,00a in Vic tory notes, war savings certificates and treasury certificates of indebted ness. He proposed that the treasury certificates not be funded further; that they be retired as rapidly as the treasurys conditions permit so the program for redeeming other govern ment obligations will not be hampered. by simultaneous payments.
 Transportation Act Increase Mir. Houston tells congress that the heavy payments required by the trans | portation act had "disarranged khe governments fiscal plans" but he be- lieces early spring will witness final settlement of the claims of the rail- roads under the guaranty provisions and that the treasury can then pro- ceed with its previously announced program of meeting and retiring the war savings certificates, amounting to | $500, ,000, 900 and the Victory note issue which aggregates s4,500.000,00
 l Through operations of the sinking | fund, use of the small repayments by | foreign governments on loans. and the employment of certain salvage returns to the treasury it has retired $1,764,- | S96,150 in bonds, Mir. Houston says, saving S100.O00.000 on the transactions by buying in the open markets. Of the amount purchased, bonds aggregating 1 S119,109,000 were retired from funds
 repaid by the foreign governments
 Lessons of the world war, MT. Hous- ton says, have shown the need for the transfer of>some of the treasury activ- lties to other departments. Five bureaus, war risk insurance, prohibi- tion, public health service, supervis- ing architect and the general supply committee, are in no way related to the fiscal operation of the government, he
 says, and urges that they be placed
 under other jurisdiction. The request
 he adds, is unusual for few if any oth-
 CT executive department heads have
 been willing to see their departments
 dismembered. His own request, he
 says, demands the more attention fo1
 this reason.
 In connection with this suggested
 reorganization. the secretary asks that
 the position of under secretary of the
 treasury be created at salary ol
 S10000. He recommends also an in-
 crease in the salaries of the assistant
 secretaries from s5,000 to s7500. Mir. Houston strongly urges the es- tablishment of federal budget system declaring that unless such a plan f:
 adopted the financial burdens of the people will be greatly increased through "the piecemeal methods o
 handling appropriations without re gard for or relation to income of tn government"
 Reviewing the loans to foreign gov ernments, MT Houston says the Amer | ican government advanced in cash be | tween April A. 1917 and November 1E | 1920, total of s9.5S0,S23,677. Of thi | amount. approximately $163 5000, ,00 | has been advanced since November 15 | 1919, under credits previously estab
 lished to five foreign governments 0 | this, France received $110.000, ,000 It l ally, 0,416, 900; Greece, $15,000, 900
 Belgium, s10.469, 900 and Czecho- Slo | valSia SS,566, 900.
 II The treasury has yet reached no de
 termination as to the form which tn foreign governments will take. NJ | Houston says, but he recommends the be allowed to extend until June, 194
 at which they must be paid under ex
 isting law. The foreign government
 the secretary says should be give
 every advantage to prepare for tn
 payment by whatever arrangement
 they deem best suited to thec indI tVidual requirements.