Wausau pilot. [volume] (Wausau, Wis.) 1896-1940, 1920-10-05
MUST PLAN To
GUT EXPENSES
CONGRESS WILL BE OBLIGED TO
OPEN THE 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 JAMES p. HoRNADAY.

=
BY JAMES p. HORNADAY.
Washington.-How to cut down the
expenses of the federal government
and thus open the way for a reduc-
ton in federal taxes will be one of
the important questions congress will
be obliged to take up when it comes
back in December. Both the big po-
litical parties are pledged TO reduce
expenses of government, and both
have promised to reduce taxes. Prom
ises are. of course, cheap, but in. this
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 S640 000.-
600 matured on September Is, and
about $l60,000O00 mature on October
Is, 1920. The greater part Uf these
SSOO,0OO,000 maturing certificates will.
the secretary says. be covered by the
vi lllCOll1C anu
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 $400,000,000 in two
series, both dated September Is. one
series designated T. 3-1921, bearing
5M per cent interest, maturing March
Is, 1921, and the other series deSig-
mated T S-1921, bearing 6 per cent in
tefest, and maturing September 10.
1921.
First Quarter May Show Surplus.
On the basis of daily treasury state
ments, during the first two months of
the current fiscal year beginning July
1, 1920, the ordinary receipts Of the
government amounted to $62S. 1917
19l.13, while the ordinary disburse-
ments during the same period amount
ed to $754, 072, 901.76, leaving net cur
rent deficit excess of ordinary dis
burSements over ordinary receipts) of
$125, 305, 1903. This net current deficit
for the first two months of the fiscal
ments in amount of some $130,0O0 900,
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 ac-
count of the railroads, 1t Is expected
that the first quarter of the fiscal
year, ending September 30, 1920, will
show a surplus.
Debt to Be Further Reduced.
Further issues of treasury certifi-
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
duced below the amounts outstanding
on September 80.
The treasury has no difficulty In sell
ing certificates. They go like hot
cakes because they bear Il high rate
of interest and are exempt from state
and local taxation, except Inheritance
taxes. and from normal federal income
fax and the corporation income tax.
and are admissible assets for the pur-
pose of calculating profit taxes. But
1t is obvious that the treasury depart
ment must some time, and the sooner
the better, stop Offering these certifi-
Gates for sale.
SurSar Prices Down to Stay.
The government authorities be-
lieve that low prices for sugar
are here to stay. This opinion
is reached by both the department Of
Justice and the agricultural depart
ment, after each has made its own In
vestigation. 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. 1t is asserted that
there has always been sufficient sup
ply of sugar; that the spectators, and
The general belief that there was a
short crop, were largely responsible for
the shortage, which actually prevailed
so far as the retail dealers were con-
cerned.
The failure of the federal govern
ment to buy last years sugar crop and
the dissolution of the United States
sugar equalization board resulted. it