The herald and news. [volume] (Newberry S.C.) 1903-1937, 1920-12-10

market and from a position Of domi-
nant influence in that market. The
future course will necessarily depend
upon the extent to which economies
are practiced and upon the burdens
placed upon the treasury, as well as
upon industrial developments and
the maintenance of tax receipts at a
sufficiently high level.
Many Notes Soon Due.
The fundamental fact which, at
present, dominates the governments
financial situation is that seven and
a half billions Of it's war indebted
ness mature within the next two and
a half years. Of this amount, two
and a half billions are floating debt
and FIVE billions Victory notes and
war savings certificates. The fiscal
program Of the government must be
determined with reference to these
n1aturities. Sound policy demands
that government expenditures be re-
duced to the lowest amount which
will permit the various services to
operate efficiently and that govern
ment receipts from taxes and salvage
he maintained sufficiently high to
provide for current requirements, IN
cluding interest and sinking fund
charges on the public debt and at the
same time retire the floating debt
and part Of the Victory loan before
maturity. With rigid economy, Wig
orous salvage operations and ade-
quate revenues from taxation, sur
plus of current receipts over current
expenditures can be realized and
should be applied to the floating
debt. All branches of the govern
nient should cooperate to see that
this program is realized.
/ can not over emphasize the nee
essity of economy in government ap-
preparations and expenditures and
the avoidance by the congress Of
practices which take money from the
treasury by indefinite or revolving
fund appropriations. The estimates
for the present year show that over
1000, ,o0o, 600 Of expenditures were
authorized by the last congress in
addition to the amounts shown in the
usual compiled statements of appro-
priatiens. This striingly illustrates
the Importance Of making direct and
specific appropriations. The relation
between the current receipts and cur
rent expenditures Of the government
during the present fiscal years, as,
well as during the last half OF the.
last fiscal year, has been disturbed by
the extraordinary burdens thrown
upon the treasury by the transporta-
ton act, in connection with the re-
turn Of the railroads to private con-
troll. Over $500, 600, ,OGo has already
been paid to the railroads under this
act-$S50, ,eo0,o 900 during the pres
ent fiscal year-and it is estimated
that further payments aggregating
possibly s65o,0O0,oo0 must still be.
made to the railroads during the cur
rent year. It is obvious that these
large payments have already serious
|ly limited the governments progress
in retiring the floating debt.
Would Revise Tax Laws.
Closely connected with this, it,
seems to me, is the necessity for an
Immediate consideration of the reyi-
sion of our tax laws. Simplifcation
Of the income and profits taxes has
become an immediate necessity.
These taxes performed an indispensa-
Bile service during the war. The need
for their simplifcation, however, is
very great, in order to save the tax
payer Inconvenience and expense and
in order to make his liability more;
certain and definite. Other and more
detailed Recommendations with re-
gard to taxes. will no doubt be laid
before you by the secretary Of the
treasury and the commissioner of in
ternal revenue.
It IS my privilege to draw to the
attention of congress for very SYM.
pathetic consideration the problem Of