New-York tribune., 1920-12-24
Houston Warns Commit
tee Not to Increase Bur.
acn Of Treasury; 1ndi-
Gates Bonus Opposition
F'iehts Revival of
War Finance Plan
New Tax Burdens Predict
ed; Disapproves Billion
Credit to Germany

y,o, tic Trioure's Washington Bureau
WASHINGTON, Dec. 23.-Secretary
of the Treasury Houston, appearing
before the Senate Finance Committee
to-day. declared himself against the
restoration of the War Finance Cor
poration, predicted a deficit of 81, ,10o,-
900 900 in government finances this
fscal year and $500, 100000 the COM
ing fiscal year, opposed the extension
of the talked of billion-dollar credit
to Germany. and expressed the view
that new sources Of revenue must be
found and no new burdens imposed
~ the Treasury. The estimated def
cit Of the current fiscal year was
$1,000 600 900 more than had previous
= been estimated.
While he did not give an expression
on the bonus bill. Secretary Houston's
statements regarding the condition OF
the Treasury and the prospects for
the revenues were looked on by mem
bars Of the committee as clearly indi-
eating his opposition to any cash bonus
plan. He was called before the COM
mitteo primarily on the bonus bill, but
he did not complete his statement and
will appear before the committee again
Monday.
The Secretary opposition TO the War
Finance Corporation was interpreted by
Senators as meaning veto OF the bill
to restore that body recently passed
by Congress. And MS indirect opposi-
.ion TO the bonus is accepted as mean
ing that cash bonus plan will not be
approved hy Congress this session.
Believes Farmers Deceived
Referring generally to legislation
de- gned to aid agriculture by means
proposed in Congress, he said: ANY
ane that holds out 10 the farmers the
ilea that these efforts will return their
war prices is their worst enemy
Only few days ago Senator Nc
Cunber. acting chairman OF the Finance
Committee, set before the Senate in a
speech figures which showed the need
fsr economy. After that speech many
Senators SAID they we're concerned over
the governments uscal situation and
tfa- they would insist on cconomv at
every possible turn. The data given
ay Secretary houston to-day deepened
me impression already made on Sen
a.ors IS TO the necessity for holding
uga. The pursestrings.
Nnsle much OF the information given
D. Sccre1arv Houston was contained
m his annual report, II attracted the
rore attention because OF the fact
ths- ne presented 1t to the committee
sroaliy
After forecastine a deicit in the
country revenues Of S2,1o0 900 900 this
hscai year and another deficit OF 81
$4,000 900 the next fiscal year, Mr.
houston said new ways and means must
De discovered 10 find money, and no
new burdens added
Ar. Houston said that aside from the
public debt, the ordinary receipts for
This gear would exceed ordinary ex-
peases b. about $500 100000 and next
year the excess would be s556, ,00O,0
These sums, he said, will fail to take
care Of the interest on tie national
debt, which Is about 81 100000 600 an
h1a!ly. In addition, the interest on the
sums laid aside annually to retire the
public debt
We face, in addition. the fact that
nany sources Of revenue are declining,
50 we Will have TO lool. around for
aeT sources 10 zap without placing
greater burdens on the Treasury" the
eecretarv tcid the committee.
AZ Secretary Houston proceeded with
ais discussion os the national ndebt-
sdress, Senator Smoot said: 1T will
take rs trirty-three years 20 pay off
91r national debt under existing law" :"
Discussing the War Finance Cor
ocratiOn, Mr. Houston said:
have been opposed TO the resump-
non d tae War Finance Corporation.
american exports are larger now than
before or during the war"
Explains Former Loans
Senator listened with the kcenest
5;erest throughout the hearing. In dis
szssirg the War Finance Corporation,
ne Secretary said the corporation
naned about SIS 900 900, Of which s2O,-
S",90o' Or almost 50 per cent, went