Evening capital and Maryland gazette. (Annapolis, Md.) 1910-1922, 1920-01-17
ANOTHER LIBERTY
LOAN IS POSSIBLE
"A Warning From Secretary Oh
The Treasury
Glass
RESTS WITH CONGRESS

Another Liberty Loan will be nee
sessary IL Congress emharks on new
neids OF large expenditures or re-
lduees the aggregate volume of taxes"
Secretary Glass declared in a state
ment setting forth in detail the gov
ernment's financial condition. If the
present tax level is retained and new
expenditures are kept down, the turn
has come in the tide of government
financing, the Secretary asserted.
Barring the congressional action
mentioned, Mr.. Glass believed the
Treasury would be able to pay it's
own way from tax and war salvage
receipts. Although further issues of
Treasury certificates of Indebtedness
may be expected. they will he redeem
ed from cash on hand rather than
through the sale OF new issues of
certificates for the first time since
late in 1917. The Treasury's secre-
tary directed attention TO statements
made early in September in which he
expressed the opinion that the strain
had lessened, and that after January
the governments financial prob
lens would more easily be solved
AS indicative of the progress made
by the Treasury in solution of these
problems, Mr.. Glass pointed to re-
auctions between September / and
January ] in the nations gross debt
and in the two classes of certificates
of Indebtedness outstanding. The
gross debt. which on September /
was $26. 596, 701 ,648, was $25,S37 ,07S-
S07 on January l. Reduction in the
floating debt (unmatured treasury
certificates of indebtedness) of $685.
653. $50 has been made since Septem-
Der l, leaving the total outstanding
obligations of this nature at s3.57S.-
4S5,800 on January l. A reduction of
$685., 726, 500 was reported for the same
period in the outstanding so-called
loan certificates. leaving 1895, 661 900
of these yet to be funded.
The loan certificates outstanding
January / were of issues maturing
January 2. January Is, February q
and February I6. All of these, the
Secretary said, have been or will be
paid out of cash on hand January l.
or from the proceeds OF sales of tax
certificates issued in anticipation of
any one of four tax installments due
during the present year. Mr. Glass
believes this indicates success for the
tresaurys plan to avoid further large
funding operations and for financing
the unfunded portions of the war
debt.
AS for the future" his statement
ly that unless Congress should enter
upon new fields of large expenditure,
not included in the treasury's esti
mates, or should make a reduction in
the amount of taxes in addition to the
reduction made year ago upon the
recommendation of Secretary McAdoo
from about $4,000. 100000 to about $4,
100000 we may look forward conf
IDENTIFY in the retirement of the float
ing debt out of the taxes provided by
existing law and miscellaneous re-
ceipts coming within the general
head of war salvage (although fur
Their issues of tax certificates in di-
minishing amounts will be necessary
from time to time in the intervals be-
tween income and profits-tax install
ment payments) and to the gradual
reduction of the funded war debt
through the operations of the Liberty
Loan bond purchase fund and sinking
fund already created by law.
ION the other hand, should Con-
gress embark upon new fields of
large expenditure or further reduce
taxes, it will, as / have already indi-
Gated, he clearly necessary to revise
the treasury's plans and call upon the
country to finance the resulting de-
felt by the issue of new Liberty
Loan