Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-01-12
MONEY PROBLEMS
EASIER TO SOLVE
Secretary, However, Advises Cau-
ton in Government Expend-
itures and Tax Slashing.
FLOATING DEBT is REDUCED
Says Loan Certificates Outstand-
ing Will Be Paid Out Of
Cash on Hand.
FLOATING DEBT is REDUCED
tBy Associated presSl

WASHINGTON. Jan. ll.--Auother T
Liberty loan Will be necessary IL Con-
Srcss cmbarks on new fields Of large
expenditure or reduces the aggregate
volume Of taxes Secretary Glass de-
Clarcd ia d statement tonight setting
forth in detail the governments finan-
ciai condition. II the present tax level
IS retained and new expenditures are
kept down. the turn has come in the
tide OF government financing, the sec
rctary asserted.
ndntIonud. ] M Mr GIaas bsli.yod ae'R tRe
treasury would be able TO pay its own
Although further issues OF Treasury
certificates ot indebtedness may hc cX
cash on hand rather than through the
sale OF new Issues of certificates fo-
the hrst time since late in l?l'. The
secretary OF the Treasury directed At
;cntion TO statements made early in
september in which Ac expressed tho
opinion that ;he strain had iessened
and that after january /. tho govern
incnts financial problems would be
more easily solved.
Gross Debt s:O,5oG.7oI.Gis.
rs indicative % the progress made
problems. Mr. GLASS pointed 10 rcduc-
lions between September l and January
in the nations gross debt and in the
two classes of certificates OF indebted
ness outstanding. The gross debt. wnich
on Sentemhor was s2s,5oG., ol,GtS.
auction in the floating debt unmatured
Treasury certificates OF Indebtedness
of s622.G55.25o has been made since
standing obligations OF this nature AT
S3.51s.fs5.SO0 on January / y reduc-
tiun OF $685.. 52G.500 was reported :or
the, same period In the outstand .nE go
called loan certincates. leaving 'l.3:S,
s6l;ooo OF thes. yet 10 be funded.
The loan certificates outstanding
January 2. January is. Febfhar, and
February 10, All OF these, he said. have
hand January |, or from the proceeds
OF sale OF tax certificates issued In an.
iicipa,ion o. any one OF four tax in
stallnents due during the present year
Nr. Glass believes this indicates sue
cess for the Treasurys plan to avoid
turther large funding operations and
The war debt.
Caution Is Advised.
AS for the future" his statement
continues sit may be stated positively
new fields OF large expenditure not in
Guided in the Trcasurys estimates or
should make reduction in tho amount
made year ago upon the recommen-
astion OF Secretary McAdoo from about
ss 9ok
the retirement OF the foa;ing debt. out
of the taxes provided by existing law
within the general head of war salvage
although further issues OF tax certi-
fcates in diminishing amounts will be
necessary from time TO time in the in
,srvals between income and profits tax
installmcnt payments), and to the
gradual reduction OF the funded war
Liberty loan bond purchase fund and
sinking fund already created by law
On the other hand. should Congress
embark upon new fields OF large ex-
pcnditure or further reduce taxes. it
will. as I have already indicated. be
clearly necessary TO revise the Treas
nry's plans and call upon the country
80 finance the resulting deficit by the
issue OF n new Liberty loan"