Northern Wisconsin advertiser. [volume] (Wabeno, Wis.) 1898-1925, 1920-12-10

neSS-llke IaSn1On DIS any olh0i
krnment. 1t seems to me that TIE
step toward proving this is to
ply ourselves with a method OF
handling our estimates and eXpenol-
lures, and bringing them to the point
where they will not be an unnecessary
strain upon our income or necessitate
unrea sonable taxation; in other Woros.
a workable budget system, and L sug-
gest that two elements are essentlaI
to such a system--namely, not only
that the proposal of appropriations
should be in the hands of a single
body such as a 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
a complete conspectus of the needs of
the government and the resources from
which it must draw its income.
[ reluctantly vetoed the budget Dill
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 I believe that the bill, coupled
with action already taken by the con-
gress to revise it's rules and procedure.
furnishes the foundations for an effec-
tive national budget system. / 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
| s6,6940O0,000 for the fiscal year 1920
exceeded those for 1919 by $1,542 000,-
| 600, while the total net ordinary ex-
| penditures decreased from $1S.514. o00-
| 900 to sc, 403, 900. 900. The gross public
debt, which reached it's highest point
on Aug. 81, 1919, when it was $685.
| 600. 900, had dropped on Nov. 80. 1870
to $24.175. 900. 900. 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. It has been due in large
| part to 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-
sation of the governments borrowin gs
except through short term certificates
of Indebtedness has been matter of
great consequence to the people of the
country at large, well as to the
holders of Liberty bonds and Victory
notes, and has had an important bear
ing on the matter of effective credit
control.
| mn no
! progressive withdrawal of the treasury
from the domestic credit market and
from a position of dominant influence in
that market. Th5 future course will nee
, | essarily depend upon the extent to which
economies are practiced and upon the
burdens placed upon the treasury, as wen
as upon industrial development and the
: maintenance of tax receipts at suf-
ficiently high level
Bio Bond Issue to Mature.
The fundamental fact which at present
dominates the governments financial sit
uation is that 1850. 900 of it's war in
debtedness natures within the next two
and a half years. OF this amount $780,
100000 are floating debt and 5000, 900, OOt
victory notes and war savings certificate ties
The fiscal program of the government
must be determined with reference tC
, these maturities. Sound policy demands
l that the government De 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
reouirements, including interest and sink.
ing fund charges on the public debt anG
, at the same time retire the floating debt
, and part of the victory loan before ma
rurity
with rigid economy, vigorous salvage
onerations and adequate revenues from
: taxation. a surplus Of current receipts
, over current expenditures can be realized
and should be applied to the floating debt
All branches of the government should
oo.onerate to see that this program Is
realized
cannot overemphasize the necessity
of economy in government appropriations
ard expenditures and the avoidance by
: the congress of practices which take
, money from the treasury by indefinite OF
! revolving-fund appropriations. The esti-
votes for the present year show that
: over a billion dollars of expenditures were
authorized by the last congress in addi-
: ton to the amounts shown in the usual
coropiIed statement of appropriations.
Specific Appropriations Urged.
, This strikingly illustrates the impor-
,ance of making direct and specific ap.
, NOMINATIONS. The relation between the
, current receipts and current expenditures
of the government during the present ifs
cal wear. as we'll as during the last hall
Of the last fiscal year. has been disturbed
by the extraordinary burdens thrown