The Arvada enterprise., 1920-12-16

fortuass Of the ffss peoples 81 more
than one part q tie world.
'Ths United States b o8 necessity
the sample democracy Of the world and
the triumph Of democracy depends
upon it, success.
Adoption Of Budget oystsM As,ssd.
Recovery from the disturbink
and sometimes. disastrous effects Of
|<hs late war has been sxcssdtngly
slow o. The other side Of the water
and hDa given promise. ! venture to
say. Of early completion only IN our
own fortunate country. but even with
u the recovery halts and il impsded
At times and there are Immediately
ssrvieeabls acts Of legislation which
Il seems to me We ought to attempt
to assist that recovery and prove the
indsstruetibls rscuperative force Of
. great government of the people.
II reluctantly vetoed the budget
bill passed by the last session Of the
Congress because Of . constitutional
objection. The House Of Representa-
tives subsequently modified the bill
In order to meet this objection. In
the revised form I believe that the
bill. coupled with action already TAX
sn by the Congress TO revise its rules
and procedure. furnishes the founda-
lions for an effective national bud
get system. I earnestly hope there
fore that one Of the first steps taken
By the present session Of the Con-
gress will be to pass the budget bill.
"The nation's finances have shown
marked Improvement during the past
year. The total ordinary receipts Of
1904, 100000 for the fiscal year 1920
exceed those for 1919 by $1.542, 600. OOO
while the total net ordinary expendi.
lures decreased from Sl8,514, 100000 to
90, 40S, 900. 900. The gross public debt
which reached its highest point on
Aug. =, 1919, when 1t was $28,596.'
600. 900. had dropped on Nov. 30, 1920
to $24.175, 100000. There has also been
a marked decrease in holdings Of gov
eminent war securities by the banking
institutions of the country al well al
In the amount Of bills held by the fed
eral reserve banks secured by govern
ment war obligations. This fortunate
result has relieved the banks and left
them freer to finance the needs Of
agriculture. industry and commerce. Il
has been due in large part to the re
duction Of the public debt, especially
Of the floating debt, but more particu
Larry to the improved distribution Of
government securities among. perma
nent investors. The cessation Of
the governments borrowings except
through short.term certificates Of In
debtedness has been q matter Of grea,
consequences to the people Of the coun
try at largo, ~ well ~ to the holder
Of Liberty boads and Victory notes an<
has had an important bearing on ths
matter Of effective credit control.
THE year has been characterised b,
the progressive withdrawal Of thu
treasury from the domestic credit
market and from q position Of domi
nant influence in that market. Tn
future course viii necessarily depen<
upon the extent to which economies
are practiced and upon the burden,
placed UPON the treasury, - we'll q,
upon Industrial developments and tn
maintenance Of tax receipts at . suf
ficiently high Level.
The fundamental fact which u
present dominates tie government's n
nancial situation 10 that $500, 900 OO(
Of IT. war Indebtedness natures with
In the next two and q half ysars. o.
this amount $500 900 900 are floating
debt and 5000. 100000 Victory notsl
and War Savings certificates. The III
cal program Of tie governnsat mus
b determined with reference 70 thss>
maturities.
Sound policy demands that eovsen
meat expenditures be reduced to tn
lowest amount which will permit tha
various services b operate efficisntly
and that government receipts frou
taxes and salvage b maintained ssflI
ciently high to provide for current -
Quirswsots. including interest and
sinking fund charges on The psblis
ds6G, aad At the same time rstirs III
floating debt and part Of the Victor
loan before maturity. With rigid ecee
omy. Vigorous salvage opesatioos end
adequate revenues from TAXATION, q
surplus Of current receipts over cur
rent expenditures can bs realised and
should b applied 10 the fioatiag DEBT
All branches Of the eovsrnmsnt should
co-opssate to go that this progran d
realised.
eaymsHts - Rsads Q HaadIeap.
II cannot ovsrsmphasiss the neees.
dty Of economy In govsrnusat a.
Dropriatioas and exDeoditureo and
the avoidance By the Coagfsss al
practices which take moosy froa III
treasury By indsfinits or rsvoayi.s
fund APPROPRIATIONS.