New Mexico state record. (Santa Fe, N.M.) 1914-19??, 1920-10-01
MUST PLAN To
CUT EXPENSES
CONGRESS WILL BE OBLIGED TO
OPEN TIE WAY TO REDUCE
FEDERAL TAXES.
BOTH PARTIES ARE PLEDGED
Some Interesting Figures on Present
Financial Condition Of the Nation
Issuance Of Treasury Certificates
Must Stop Soon.
By NJ p.

Washington.-How to cut down the
expenses of the federal government
and thus open the way for a reduc-
ton I'm federal taxes will be one or
the important questions congress will
be obliged to take up when 1t comes
back In December. Both the big po-
litical parties are pledged to reduce
expenses of government. IN both
have promised to reduce taxes. Prom
ises are, of course, cheap, but In TINS
case public sentiment Is so over
whelmingly In favor Of cutting down
expenses and also reducing taxes that
some effort to keep the promises That
have been made will have to be put
forth.
Treasury certificates Of indebted
ness to the amount of about $64O,OOO.-
600 matured on September Is, and
about 100000. 900 mature on October
10, 1920. The greater part of these
100000 900 maturing certificates will,
the secretary says. he covered by the
installment of income and pronts
taxes payable on September 10. In
order to provide for the balance OF
the certificates requiring to be re-
funded and to meet the current re-
quirements of the government up to
October IS, the treasury has decided,
on the basis of the best estimates
available at this time, to offer treas
ury certificates of Indebtedness In the
amount of about $4OO,0O0,0OO in two
series, both dated September IS, one
series designated T NJ 3-1921, bearing
SIX per ZEN interest. maturing March
IS, 1921, and the other series desig-
mated T S-1921, bearing @ per cent in
%terest. and maturing September 10.
1921.
First Quarter May Show Surplus.
On the basis of daily treasury state
ments. during the first W month"; OF
the current fiscal year beginning July
/, 1920. the ordinary receipts Of the
government amounted to $82S. 167.-
1911. 10, while the ordinary disburse-
ments during the same period amount
ed to $754,O72,901 .78, leaving a net cur
rent deficit ~(excess Of ordinary dis
bursements over ordinary recelpts) OF
$125, 305. 1908. This net current deficit
for the first two months Of the fiscal
year is due chiefly to actual cash pay
ments in amount Of some $130,OO0.OOO
made necessary by the provisions OF
the transportation act in connection
with the return Of the railroads to pri-
vate control. According to the latest
estimates, payments on account of the
railroads will probably continue on a
large scale during the balance Of the
present calendar year, and will be
relatively heavy during the month of
September.
Notwithstanding the net current
deficit during the first two months and
these extraordinary payments on &C
count of the railroads, 1t Is expected
that the first quarter Of the fiscal
year, ending September 80, 1920, will
show a surplus.
Debt to Be Further Reduced.
Further issues Of treasury certif.
Gates during the months of October
and November may subsequently re-
suit in temporary increases in both
gross debt and floating debt. but the
treasury confidently expects that by
the completion of the second quarter
Of the fiscal year, on December 81,
1920, any such temporary increases
will have been overcome, and that the
gross debt and floating debt on De
cember 81 will have been further re.
duced below the amounts outstanding
on September 30.
The treasury has no difficulty In sell
ing certificates. They go like hot
| cakes because they bear a high rate
of interest and are exempt from state
and local taxation. except inheritance
taxes. and from normal federal income
tax and the corporation income tax
and are admissible assets for the pur
pose of calculating profit taxes. Blu
IL Is obvious that the treasury depart
ment must some time. and the sooner
the better. stop offering these certif,
Gates for sale.
Surpar Prices Down to Stay.
The government authorities he
lieve that low prices for sugar
are here to stay. This opinion
is reached by both the department OF
justice and the agricultural depart.
rnent, after each has made its own in.
v~estigation. The authorities express
the view that the profteer and the
Spectator have had their day. and
that the law Of supply and demand
will get back TO work.
There is also general agreement that
there was but little excuse for the hys.
terra over sugar during the last year,
and there is further agreement that
prices never should have gone as high
as they did go. II is asserted that
there has always been a sufficient sup