New-York tribune., 1920-05-01
u. S. Finances
Chaotic, Says
Leffingwell
Assistant Secretary of the
Treasury i'm Speech Here
Asserts That Government
''Is One of Obsiruction''
Audience of 500 Amazed
Attacks Congress, Waste,
Bonus, Urging Budget
and Revision of Taxes

Russell C. Leffingwel, Assistant
Secretary of the Treasury, speaking
before the Academy of Political
Science yesterday at the Hotel Astor.
charged that the Federal government
lslfailing to deal in constructive way
with any of the vital problems con-
fronting it.
He asserted that government is
DIVIDED against itself, that it is
therefore incapable of effective lead
ership in national. or international af-
fairs" and the Congress with a "penny
wise and pound foolish policy" is
listening to demands of former soldiers
for bonuses instead of cutting public
expenditures to the quick"
Five hundred bankers, educators and
economists listened with surprise to
the criticism of the government
uttered by government official. Mr..
Lefingwell's remarks were part of a
general discussion held by the Acad-
envy to consider methods of combat
ing money imitation and the high cost
OF living. A dozen speakers pointed
out that "easy money" due to inf1a-
ton and extravaganza on the part of
individuals, corporations and the gov
ernment was the basic cause of in g.
Gustrial unrest.
Government of Obstruction"
Asserting that by becoming dead
locked against itself" the government
had become one of obstruction, Mr..
Lef'ingwell said:
"At this most critical moment in the
history of Europe, when our fnan cial
mud oil,
Is so great that disaster there would
mean disaster here, rany of our own
people have turned gamblers and vast
ers. For plain-living and high-think-
ing we have substituted wasting and
b'ckering. We enjoy high living, while
we grumble at the high cost of living"
1T is at least questionable" ne con-
tlnued, whether the progress of re-
;,ction would have been so complete. or
80 disastrous If our institutions had
rot given this country during the most
critical period of the worlds history
government divided against Itself and
therefore incapable of effective lead
ership In national and international al
fairs"
Extravaganza on the part of the gov
ernment must be stopped by cutting
expenditures to the quick" Mr. LEFT
fngwell said. And we must abjure
bonuses and realize promptly on all
salable war assets, including ships
applying the proceeds to the war debt"
he continued. The creation OF a ma
tonal budget with teeth in it" and the
prompt revision of present tax laws
were some of his remedies for the
situation.
Attacks Congress
Congress was attacked by Mr.. Lef-
1IUOupl1 for oynandif,1rac NCOp-
gress," he said, "has struggled to ef-
feet economies at the expense Of eff
ficient administration while it takes
time to add $65,00O,000 to the Civil
War pensions.
"Instead Of telling the people frank
ly and boldly that prices are high be
cause they are wasting, we fix prices
and prosecute protiteers in order that
the people may buy more and pay
less. Instead Of telling the young
men. who were drafted to fight and
who came back better and stronger
and more fit to fight their own battles
than they ever were before to go to
work and save their money and look
out for themse elves, as any self-respect-
ing man should, we listen complacent-
ly, TO their organized demands for
bonus, euphemistically called adjusted
compensation
Mr. Lef1ingwell, while praising the
Liberty Loan campaigns as "the most
remarkable achievement of any peo-
pie" said he feared the good achieved
in training people to save is about to
be lost Too many people have come
TO regard a $50 bond the same as a
$50 BILL" he said.
Summing up his proposed remedies,
Mr. Leffingwell said:
rWe must get together and face
the critical situation as we would face