The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1920-12-07
WILSON, SENDS MESSAGE TO CONGRESS
FULL TEXT OF VIII SONS
ADDRESS TOsCONGRESS

ourselves with q systematic method
Of handling our estimates and ex-
penditures and bringing them to
the point where they will not be
an unnecessary strain upon our in
come or necessita,e unreasonable
taxation, in other words, q work
able budget system, and l respect
fully suggest that two elements are
essential to such a system; name
ly. not only that the proposal Of
appropriations should be in the
hands Of a single body, such as .
single appropriations committee in
each house Of the congress, but also
that this body should be brought
into such cooperation with the de-
parsments of the government and
with the treasury Of the United
States as would enable it to act
upon complete conspectus Of the
needs Of the government and the
resources from which 1t must draw
its income.
Urges Budget Bill.
ACluIt<LuIiy NcASu luc UuuSCt
bill passed by the last session OF
the congress because CT a conxti-
tutional objection. The house Of
representatives subsequently modi-
fed the bill in order to meet this
objection. In the revised form l
believe that the bill, coupled With
action already taken by the con-
gress to revise its rules and pro-
cedure; furnishes the foundations
for an effective national budget sys-
tenn. l earnestly hope. therefore,
that one Of the first steps taken by
the present session of the congress
will be to pass the budget bill.
The nations finances have shown
marked improvement during the
past year. The total ordinary re-
ceipts CT 1854 ,O0O, 900 for the fis-
cal year 1920 exceeded those for
1919 by $1,542,000,000. while the to-
tai net ordinary expeneitures de-
creased from $1S,51A000,000 to
$6,4o3, 100000.
The gross public debt, which
reached its highest point on Aug.
81, 1919, when it was $26,596,0O
900, had dropped ON Nov. 30. 1920,
to s24.175, ,00O, 900. There also has
been a marked decrease in holdings
of government war securities by
the banking Institutions OF the
country as well as in the amount
of bills held by the federal reserve
banks, secured by government war
obligations. This fortunate 4resnk
has relieved the hanks and leff
them freer to finance the needs OF
agriculture, industry and commerce
! 1t has been due in large part to
the reduction OF the public debt es-
pecially Of the floating debt. but
more particularly to the improved
distribution Of government securl-
ties among permanent investors.
The cessation Of the governments
borrowings except through short
term certificates Of Indebtedness
has been a matter OF great conse-
quence to the people Of the coun-
try, at large, as we'll as to the hold
ers of Liberty bonds and Victory
| notes. and has had an important
bearing 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 a position
of dominant influence in that mar
I:ket. The future course will neces-
sarily depend upon the extent to
which economies are practiced and
upon the burdens placed upon the
treasury as we'll as upon industrial
developments and the maintenance
OF tax receipts at a sufficiently high
level.
The fundamental fact which at
present dominates the governments