The Bridgeport times and evening farmer., 1920-12-07

stigma of rejection upon the great and devoted men who brought it's government into existence and estab- 1ished it in the face of almost uni VeSral opposition and intigue, even in the face of wanton force, as, for ex- ample, against the orders in council of Great Britain and the arbitrary NApoleonic decrees which involved us 1872.
 "I urge you to consider that the display of an immediate disposition on the part of the Congress to remedy any injustices or evils that may have shown themselves in our own national life will afford the most cffectual offset to the forces of chaos and tyranny which are playing so disastrous a part in the fortunes of the free peoples of more than one part of zne world. The United States of the world, asd the triumphs of democracy depends upon it's success.
 'Recovery from the disturbing and sometimes disastrous effects of the late war has been exceedingly slow on the other side of the water and has given promise, venture to say, of early completion only in our own fortunate country; but even with us the recovery haltS and is impeded at times and there are immediate ser Niceable acts of legislation which it seems 10 me we ought to attempt, to assist that recovery and prove the indestructible recuperattve force of a great government of the people.
 "One of these is to prove that great democracy cam keep hope as successfully and in as business-like a fashion as any other government. It seem to me that the first step to- warG5 proving this Is to supply our selves with a systematic method of handling our estimates and expendi- lures and br1ng ging them to the point where they will not be am unnecessary strain upon our income or necessi- tate unreasonable taxation, in other words, workable budget system, and l respectfully suggest that two ele- ments are essential to such a system, namely not only that the proposal of appropriations should bo in the hands of q single body, such ag a. single ap- propriations committee in each house of the Congress, but also that this body should be brought into such CO., operation with the departments of the government and with the treas ury of tho United States as would enable 1t to net upon q complete con- raectus of tho needs of the govern mont and the resources from which it must draw It's income.
 T reluctantly vetoed the budget bill passed by the last session of the Congress because of q constitutional objection. The House of Representa- lives subsequently, modified the bill in order to meet this objection.
 Tn tho revised form believe that 1'lc DlilI tOuplet with dcClUn alreduy taken by the Congress to revise its rules and proceGIre, furnished the foundations for sl effective national budget system. l earnestly hope, therefore, that one of the first steps taken by the present session of the Congress will be to pass the budget bill.
 The nations finances have shown marked improvement during the past year. The total ordinary receipts of SS,6 4,000,000 for the fiscal year 1920, exceeded these for 1919 by 1,542.- 100000, while the total net ordinary poo, ,O0o to $6,403, 1000.
 The gross public debt which T01ched its highest point on the 31st CE August, 1919, when it was $26.- 696, 100000, had dropped on Novem- Der. 1920, to S2f175. 100000. There has also been a marked decrease in holdings of government war securi- Hies by the banking institutions of the 'Bills held by the federal reserve banks; secured by government war obliga- lions. This fortunate r0su1t has re Heved the banks and left them freer Co finance the needs of agriculture taadustry and commerce.
 "It has been due in large part to Sne reduction of the public debt es- pecially of the floating deht, but Jnore particularly to the improved distribution of government securities among permanent investors. The cessation of the governments borrow 1ngs except through short-term cer- tificates of Indebtedness has been a matter of great consequence to the. people of the country at large as well as to the holders of Liberty Bonds and Victory Notes and has had an important bearing on the matter of effective credit control,
 The year has been characterized by the progressive withdrawal of the treasury from the dom stic credit market. The future course will necessarily depend upon the extent 10 which economies are practiced and upon the burdens placed upon the treaTury, as well as upon industrial developments and the maintenance of fax receipts at sufficiently high level
 The fundamental fact which at present dominates the government s financial situation is that seven and a half billions of its war indebtedness mature within the next tive and a half years, Of this amount, two and a half billions are floating debt and i've billions Victory notes, and War