Wausau pilot. [volume] (Wausau, Wis.) 1896-1940, 1920-06-22

nueS and TO facilitate the retirement
of the governments floating indebted
ness, estimated TO total more than 49,
000,000000, now outstanding in the
form of treasury certificates of in
debtedness. This view is taken by
Secretary of the Treasury Houston,
who believes that the economic position
of the country will be made stronger
by the prompt retirement of the float
ing indebtedness.
In revising present tax legislation
to swell the revenues of the govern
ment and permit the retirement of the
outstanding certificates of indebted
ness at an earlier date than that con-
templated by the volume of present
tax receipts, Secretary Houston be-
Jieves that congress should not fur
ther increase the burdens of taxation
upon business and commerce. On the
contrary. it is the Secretary's view
that taxation on this point should be
leSsened rather than increased, de-
spite the need of reducing the gov
ernments Indebtedness at the earliest
possible time
increases in present rates of taxa
tion, he advises. should be provided
in the case of income generally. and
distributing the burden of a further
increase in taxes over the tax-paying
public, sparing business to the great
est extent possible Upon what classes
OF taxpayers taxes should be increased
for the purpose of increasing tax re-
celptS, Secretary Houston refuses to
state.
Should Pay Floating Debt
Among the more important needs
OF the country. Mr.. Houston saws. is
that of dispostng of the floating in
deotedness. The view is taken by the
secretary that the present program Of
me treasury forced to go into the mar
Ret every fortnight for the fiotation of
additional certificates of Indebtedness
TO raise money with which to meet
maturing securities of the same sort
ana to meet current expenses of the
government is harmful in its effect in
raising the level of interest rates.
II the huge amount of outstanding
certificates of Indebtedness could be
retired before July l, 1921. as now
contemplated. by the contribution of
greater taxes, the public would save
much money by the earlier with
drawal of the government from the
m0nnV
Il, 1921, as the time by which the
treasury hopes to have accumulated
sufficient funds to redeem the certifi-
Gates is tentative, Secretary HOus-
ton emphasizes, and is contingent uuon
keeping congressional appropriations
from exceeding their present amount
and upon keeping the present volume
of tax receipts undiminished.
The redeeming of Victory loan Sc
curities coming due within the next
few years, Mr.. Houston says, in itself
! is a serious problem to which the
treasury is giving large part of its
attention. The raising of sufficient
| funds with which to meet the matur-
| ing securities will call for the best
efforts of the treasury department. To
give clear field for the redemption OF
securities, undisturbed by outstanding
certificates of Indebtedness. it is urged
! by :he secretary that all outstanding
certificates of indebtedness should be
redeemed and retired. if the country is
to regain a stable financial footing in
time with Great Britain, France and
| other countries that have increased
rates Of taxation to pay the cost OF
war within the shortest possible time
Buy Bonds Instead of Selling.
| Recently the treasury department
| has been doing what it can to eRcOur
age holders of Liberty bonds and Vic.
tory bonds to hold on to them. 1t ad.
viSeS people who can afford TO buy
these government bonds to buy them
instead of selling them. 1t seems that
a great many persons who are not in
position to get accurate information
about the value of these bonds arc
discouraged because the price recently
has been going down slightly. and are
disposed to sell. The treasury depart
9ent is confident that with the return
&. normal conditions these bonds viii
advance in price 1t points out that
even at the price at which the bonds
are now selling they are extremely val
liable.
The federal reserve board called the
directors of all the federal serve banks
here the other day for conference or
the general financial situation. and af
ter every phase of this situation has
been considered it was agreed shat the
country is absolutely sound financial
! Iy. These eminent fnanCierS from al
sections of the country went home de
termined to be more active than ever
before in preaching the gospel of say
! ing and of greater production.