The Birmingham age-herald., 1920-12-08
FINANCES IMPROVING

buuSel plll.
 FINANCES IMPROVING
 The nations finances have shown marked improvement during the past year The total ordinary receipts of $6, ,694. .000, 900 for the fiscal wear 1920 exceeded those for 1919 by s1,542.O 900. . 900, while the total net ordinary ex- penditures decreased from s1S,514,OOO,- 900 to S6, 03.000,000. The gross public debt, which reached its highest point on August 31, 1919, when it's was S2e.596, 6,o0o,0 900, had dropped on Novem. Der so 1920, to $24.175, 900.
 There also has been a marked de- crease in holdings of government war securities by the banking institution, or the country. as well as in the amount or bills held by the federal reserve banks secured by government war oh. legations.
 This fortunate result has relieved the banks and left them freer to finance the needs of agriculture. in. uustry and commerce. It has been due in large part to the reduction of tb. public debt. especially of the floatinr ueot' and more particularly to the i'm. proved distribution of government SC, curltes among permanent investors The cessation of the governments Dor. rowlngs, except through short-term cer- tificates of indebtedness, has been !, matter of great consequence to the peo- Pie or the country at large, as we'll as 1 to the holders of Liberty bonds and Vic 1 tory notes, and has had an important bearing on the matter of effective credit | control Ihe year has been characterized by the progressive withdrawal of the treas ury from the domestic credit market and rom a position of dominant influence in that market The future course will rec essarily depend upon the extent tC which economies arc practiced and upon the burdens placed upon the treasury as well as upon industrial developments and the maintenance ot tax receipts al a sufficiently high level.
 WAR DEBTS MATURE SOON
 The fundamental fact which at present dominates the governments financia situation is that seven and a half bill. lions of its war indebtedness mature within the next two and a half years. Of this amount two and half billions are floating debts and five billions Victory notes and War Savings certificates l The fiscal programme of the govern ment must be determined with reference | to these maturities. Sound policy de mands that government expenditures be reduced to the lowest amount which will | permit the various services to operate ef. | ficiently and that government receipts | from taxes and salvage be maintained | sufficiently high to provide for curren requirements, including interest and sink. l ing fund charged on the public debt and at the same time retire the floatins debt and part of the Victory loan before maturity. With rigid economy, vigorou. salvage operations and adequate reve nues from taxation, a surplus of cur rent receipts over current expenditures
 
 to the floating debt All branches of tn, government should cooperate to see tha | this programme is realized.
 | 1 cannot overemphasize the necesst, lof economy in government appropriation. and expenditures and the avoidance b, the Congress of practices which talk, money from the treasury by indefinit or revolving fund appropriations. Tn estimates for the present year show tha over billion dollars of expenditure were authorized by the last Congress, il addition to the amounts shown in tn usual compiled statements of appropria tions.
 This strikingly illustrates the impor tance of making direct and specific ap propriations The relation between tn current receipts and current expenditure of the government during the presen
 fiscal year, as we'll as during the frs half of the last Fiscal year, has bec disturbed by the extraordinary burden thrown upon the treasury by the trans portation act, in connection with the re turn of the railroads to private contro PAYMENTS TO RAILROADS
 Over $500, ,0o0,000 has already been pal to the railroads under this act-$35O 900 0C during the present fiscal year; and 1t i estimated that further payments aggre gating possibly s6J0,o00,000 must still D made to the railroads during the curren year. It is obvious that these large pay