The Washington herald., 1920-04-11
War Waste Of Many Millions
Shows Uncle Sans Dire Need
Of Efficient Financial Policy
Reform in Governments Financial Activities
Urged as. Result of Great Losses in Ex-
penditures by Executive Departments.

bill which Is pending In Congress.
and which has the approval Of the
department. according to Gen.
Lords statement. provides for a
number Of Independent supply d.
visions within the department.
Unprepared for war.
The War Department was chiefly
engaged In spending money, not in
raising II at all. The Treasury De-
partment was not only a great
spender during the war. but was
pesponsible for raising the billions
which all OF the departments spent.
We had been an onlooker of, the
world war for nearly three years
before we went into IL. Yet when
We went In. the Treasury Depart
ment had not formulated. the ad-
ministration had mot computed any
responsible estimates as to the cost
to this country. the amount to be
raised from taxation and the
amount to be raised from issuing
bonds.
For more than a year after we
got In. with a wretchedly poor rev.
enue measure on the statutes, a
proper information knew to be in
adequate. inequitable and insuffi-
Client the Treasury Department had
no plans for amending that act,
or OF establishing q proper relation
ship between taxation and bond is
sues. between receipts and expend-
itures.
No FIXED Finance System.
AS the departments called for
money, Congress appropriated the
sum asked. But when Congression-
al leaders cognizant with the de-
fccts in the revenue law sought ad-
vice from the Treasury Department
as to methods OF raising the funds
appropriated, they were turned
away without any satisfaction. The
War Department. as Gen. Lord said.
had no fixed and determined or
carefully digested and prepared
financial system" Neither had the
Treasury Department.
On Decenber s. 1sl7-eieht months
after We entered the war-Mr. kitch-
in. the Democratic leader of the
House. frankly admitted that the
administration had no financial pro-
gram ready for the consideration Of
Congress.
During January 1918. Mr.. Kitchin
conferred with Treasury Depart
ment oficials. called their attention
to the need for a revenue program.
and asked for suggestions.
Finding that II was not the
policy OF the treasury or OF the
administration to undertake the
this session OF Congress" he said
later. and knowing too that a
large majority of the House and
Senate was opposed to such an un-
dertaking. ceased further insist
ence upon it's consideration"
Fiscal Program Urged.
Mr.. Kitchin, however. took tht
precaution OF issuing a statemen,
to the public declaring his belief
that the war revenue act should
be amended and that the admins
tration should formulate a fiscal
program.
But It was not until May 10
1918. that the Treasury Department
submitted suggestions for legisla-
ton to provide additional revenues
to meet increasing war expendi'
lures. BY that time the treasury
wanted more money and wanted il
at once.
From May until October the issue
was fought out between admins
tration and Congress, with the re-
suit that. In the fall, we had thrust
upon us the present inequitable and
unjust tax law.
Today the whole country Is de.
manding the repeal of certain pro.
visions of this law-particularly the
excess profits section, which econo-
mists assert to be more responsible
than any other one cause for the
high cost Of living. The failure o'
| the administration properly to plar
a fiscal program before we entered
the war. its failure to work out -ont
during the war, and its inability tc
do so since, have put the country
! into a position where II must con-
tinue for months, at least, to con-
tribute billions in taxation and ad'
ditional billions to the profiteers
who take advantage of the existing
revenue measure to avoid their owr
financial responsibilities and pass
them on to the .people