Wauwatosa news. [volume] (Wauwatosa, Wis.) 1900-1948, 1920-12-10
DEGREES which involved us in what we
know as the war of 1872.
Sample Democracy of World.

1 play OF an immaculate ulSpOSiiiOu vi
the part of congress TO remedy any in
/ justices or evils that may have shown
themselves In oCr national life will
afford the mos. effectual Offset TO the
forces Of Chaos and tyranny which are
playing so disastrous q part In the
fortunes of the free peoples of more
than one part of the world. The
United States is of necessity the sam
pie democracy of the world, and the
triumph of democracy depends upon
its success.
Recovery from the disturbing and
sometimes disastrous effects of the
late war has been exceedingly slow on
the other side of the water. and has
given promise, / venture to say, of
early completion only in our own for
tunate country; but even with us the
recovery halts and Is lmpeded at times,
and there are immediate serviceable
acts Of legislation which, it seems to
me, we ought to attempt to assist that
recovery and prove the indestructiDle
recuperative force of a great govern
ment of the people. One of these is
to prove that a great democracy can
keep hope as successfully and In as
business-like a fashion as any other
government. 1t seems to me that the
first step toward proving this is to
supply ourselves with method OF
handling our estimates and expendi-
lures. and bringing them to the point
where they will not be an unnecessary
strain upon our income or necessitate
unreasonable taxation: in other words.
workable budget system. and I sug-
gest that two elements are essential
to such a system--namely. not only
that the proposal CO appropriations
should be in the hands of single
body. such as single appropriations
committee in each house of the con-
gress, but also that this body should
be brought into such cooperation with
the departments of the government
and with the treasury of the United
States as would enable 1t to act upon
complete conspectus of the needs OF
the government and the resources from
which ii must draw its income.
I reluctantly vetoed the budget bill
passed by the last session of the con-
gress because of constitutional objec-
ton. The house of representatives
subsequently modified the bill In order
to meet this objection. In the revised
form / believe that the bill. coupled
with action already taken by the con-
gress to revise its rules and procedure
furnishes the foundations for an effec-
tive national budget system l ear
nestly hope, therefore. that one OF the
first steps taken by the present session
of the congress will be TO pass the
budget bill
Marked Gain In Finances.
The nations finances have shown
marked Improvement during the past
year. The total ordinary receipts of
$6,694. 100000 for the fiscal year 1920
exceeded those for 1919 by s1.542. 000-
600. while the total net ordinary ex-
penditures decreased from $1S.514.000.-
600 to s6,40s 10000 The gross public
debt, which reached its highest point
on Aug. 81. 1919. when IL was $26.5a6.-
100000. had dropped on Nov. so. 1920
to $24175 600 000 There also has been
a marked decrease in holdings of gov
eminent war securities by the banking
institutions of the country as well as
the amount of bills held by the federal
reserve banks secured by government
war obligations.
This fortunate result has relieved
the banks and left them freer to finance
the needs of agriculture. industry and
commerce. 1t has been due in large
part 10 the reduction of the public
debt especially of the floating debt
but more particularly to the improved
distribution of government securities
among permanent investors. The ces-
satton OF the governments borrowings
except through short term certificates
Of Indebtedness has been a matter of
great consequence to the people OF the
fanta f~.y M love nall - ..
holders of Liberty bonds and Victory
notes. and has had an important boar-
ing on The matter of effective credit
control
The year has been characterized by the
progressive withdrawal of the treasury
from the domestic credit market and
from position OF dominant influence in
that market The future course will nec-
essariiy depend upon .he extent to which
! economies are prscticed and upon the
| burdens placed upon the treasury, as well
as upon industrial development ano the
maintenance of tax receipts at a suf4
| nciently high level.
Big Bond Issue TO Mature.
The fundamental fact which at present
dominates the governments financial sit
uation is that $7,50o,000,000 of its war in
debtedness natures within the next two
10000 are floating debt and s.. 0o0. Oo0. ono
victory notes and war savings certificates
The fiscal program of the government
must be determined with reference to
these maturities. Sound policy demands
that the government expenditures be re-
duced to the lowest amount which will
permit the various services to operate
efficiently and that government receipts
from taxes and salvage be maintained
sufficiently high to provide for current
requirements. including interest and Sink
| ing fund charges on the public debt, and
| at the same time retire the floating debt
| and part of the victory loan before ma
/ turity
| with rigid economy. vigorous salvage
/ operations and adequate revenues from
/ taxation. surplus of current receipts
! over current expenditures can be realized
and should be applied to the floating debt
1 All branches OF the government should
| cooperate TO see that this program is
/ realized.
cannot overemphasize the necessity
\ of economy In government appropriations
and expenditures and the avoidance by
the congress of practices which take
money from the treasury by indefinite or