The Birmingham age-herald., 1920-07-26
FISCAL YEAR SHOWS| INCOME EXCEED
 CURRENT EXPENSES.
Reduction Also Shown In Gross Public Debt, With Further Cuts In Next
 Twelve Months
By Associated Pre"

Washington, July 25.-Thc gov-
 ernment's income for the fiscal
 year ending June 90 exceeded its
 expenses for the first time in three
 years, Secretary Houston declared
 today in n statement in which he
 announced n reduction in the gross
 pnbiic debt and forecast n further
 ssimportnnt reduction" for the com
 ing twelve months.
 While the annual operations of the government showed surplus or $2sl,- a21,547 the more important chanSe' treasury officials said, was the cutting of s1,1S5.1S4,692 from the gross pup lie debt during the wear. The natlohai debt aggregated s24299,S21, 461 on June 30 and s25, ASA, ,506, ,16o year previously, but in the meantime the obligations or the nation had mounted to their high est point-S26, 596, ,701,64S, on August 3l due to the operations incident to the handling of maturities of treasury ger tificates of indebtedness. Thus, re- duction of $2.297, 7,3S0,1S0 from the peak is shown.
 Outside of the transaction involving the gross debt, treasury receipts for the year aggregated $5,694 .565,3SS while expendi- lures totaled $6, ,40S, ,343, S41. The statement revealed, however, that the surplus was due largely to a partial liquidation or the assets of the war finance corpora tionl Exclusive of the special income from that source, there was deiici. oA s7l ,S19,o72 in the actual handling or iii- come and expenditures
 '.The operations incident to the nam ding of the smaturities of the treasury certificates from June 15 to July 10 nave now been completed" the statement said and have resulted in further reduc- tions in both the gross debts ana the floating debt of the United states. lhe gross debt on June 90, 1920, on the pas's of daily treasury statements, amouhteu to s24, ,299, ,32l ACT, as against '4s49oo, io, at the era of the previous fiscai year on June 30. 1919, and s26,596, 70l, ,64s on Au- gust 31. 19l9 when the gross debt was at is peak. In other words, the gross deot on June 30, 1920 has been reduced oy s2 2g7. .3S0, ,1S0 from it's peak on August Sl' 1919. and by si, ,1S5. .1S4,6s2 from the figure or June 30, 1919. On July 20, l92o, on the basis of daily treasury statements, the a1 gross debt amounted to s24, ,264,N N9,5zl Showing a further reduction Of about ss5. eco GOO. after taking into account the s901 O61 5OO face amount of treasury eer- tificates issued under date of July b. The floating debt Qoan and tax certlli- cates unmatured), on June %, lsso' amounted to g, ,4S5, ,552, 800, as against SS,- 267,SsS.5U al lnf cioor VI sAiS z. n.o {. fiscalsysar on June 3o l9isf ana Ss. sss, 5. : 225,00o on August Sl lsss on JuiyI ~ 1s<d inc loan and tax certificates out- stariing amounted to g, 453 946,50o snow ing further reduction of about S3l,0oo, : GOO, as the result of the redemption or loan certificates since the close of the fiscal year 1920 in the amount or some s232 O0o, ,0O0; and the issue of loan and tax certificates dated July 15, in the amount of some sAA00oooo.
 "Further4ssues of treasury certi1lcates will be offered as necessary from time to time to provide for the current re uuirements of the government ana 10 meet maturities of treasury certificates TOW outstanding. The amounts Of these issues will depend in large measure upon the extent of the burdens imposed upon the treasury by the transportation act i,, connection with the return or the raii- roads to private control, including par ticularly the liability on the guaranty. which is as yet unascertainable. While. as the result of new issues of treasury certificates in the intervals between the large income and profits tax instailments there may be temporary increases Tn both gross debt and floa ting debt, the treasury expects, though 1t is impossible to speak positively, that both gross dept and floating debt will, during the first two quarters of the current fiscal year. he reduced below the figures outstand- ing on June 3o 1920 and that unless ad- eitjonal burdens should be imposed ty legislation there will be an important further reduction in the last two guar ters of the fiscal year.