The Washington herald., 1920-12-18
WARRENSAYS
U. 5. TREASURY.
NEEDS FRIENDS
Appropriations Chairman
Calls on Colleagues to
Eliminate Custom.

Senator Francis e. Warren, of
Wyoming. chairman Of the Senate
Committee on Appropriations. yes
terday served notice on his col
leagues that the usual rule of the
Senate to talk economy but insist
upon substantial increases in ap-
preparation bills as passed by the
House, is to be suspended indefin-
itely. He indicated that the wishes
of individual members for increases
on grounds of personal courtesy
rules that ordinarily prevail would
have to be denied this year.
The Treasury of the United States
needs friends now, IL IL ever did,
IL this nation is to remain solvent,
Warren said on the floor. Il feel
IL incumbent upon me to say that
in my opinion we are going to be
without credit in this nation, our
bonds are going much lower, and we
are going to have to pay higher
interest upon certificates of indebt-
edness unless we are able to re-
trench very sharply, and not branch
out in any new lines, no matter how
desirable they may be under ordin-
ary circumstances.
Reviews War Time Custom.
The condition of the Treasury
is something like this: During the
war II was easy to obtain funds
because every patriotic, loyal citi-
zen was anxious to support the gov
ernment- They subscribed for FUNDS
readily at a low rate of interest,"
many of them being compelled 10
borrow money to buy the bonds
They have since had to call upon
the banks to relieve them, to take
the bonds from time to time, at
reduction of from 5 to II per cent.
They have had to dispose OF many
of them to pay their government
taxes. You will find the last pay
ment of taxes quite largely made
by those who had no other tunds
available and had to sell their bonds.
The government is now In posi-
ton that We all would think un-
sound for a business man who was
borrowing from day to day on tne
street. selling his paper where ne
might. The government Is appeal
ing to citizens from month to month
to buy its certificates in order thaI
it may buy up others.
Estimates Nearly $5,eco,ooo,ooo.
we had a prosperous year IN
1919, Nearly everyone engaged IN
busines made money. They made
liberal returns for taxation. The
tax collected for 1919 was adequate
to meet expectations. Every Sena-
tor knows 1920 has not been al
together a prosperous year. 1t GER
tainIy is not expected that thou-
sands and tens of thousands, IL
might be said millions. who in 1913
reported an ability to pay taxes
and who actually paid considerable
amounts, are going to be able to
pay for 1920. I know very well
that the livestock men, the growers
of wheat, cotton, corn and. in fact
the farmers as class, Will lose
much money on the present years
production. No tax is to be expect
ed from them
The Secretary of the Treasury
has sent us estimates for S4.65S,S5b.-
600 There will have to be added TO
that around $500, 100000 for contin-
gencies and miscellaneous eNpendi-
lures. We all know We cannot ma
funds enough to cover sum near
this $4,000, 100000, or more, without
raising the present rate of taxation.
We must greatly reduce amounts to
be appropriated or else increase our
present load of indebtedness