Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1920-12-10
DEGREES which involved US in what we
know as the war of 1912.
Sample Democracy of World.

hUOW d. Liz W al VI 1oAEs
Sample Democracy of World.
urge you to consider that the dis
play of an immediate disposition on
the part of congress to remedy any in
justices or evils that may have shown
themselves in our national life will
afford the most effectual 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 the world. me
United States is of necessity the sam
pie democracy of the world, and the
triumph of democracy depends upon
its 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 mas
given promise, / venture to say, OF
early completion only in our own for
tunate country; but even with us the
recovery halts and is impeded at times,
and there are immediate seryiceable
acts of legislation which, it seems to
me, we ought to attempt to assist that
recovery and prove the indestructlDle
recuperative force of great govern
ment of the people. One OF these is
to prove that a great democracy can
keep hope as successfully and in as
business-like a fashion as any other
government 1t seems to me that the
first step toward proving this is 10
supply ourselves with method OF
handling our estimates and expendl-
lures, and bringing them to the point
where they will not be an unnecessary
strain upon our income or necessitate
unreasonable taxation; in other Worhs'
a workable budget system, and sug-
gest that two elements are essential
to such a system-namely. not only
that the proposal of appropriations
should be in the hands of single
body, such as single appropriations
committee in each house of the con-
gress. but also that this body should
be brought into such cooperation with
the departments of the government
and with the treasury of the united
States as would enable 1t to act upon
a complete conspectus of the needs OF
the government and the resources from
WnlCA II must QTaW us
reluctantly vetoed the budget Dill
passed by the last session of the con-
gress because of a constitutional oDJec-
tion The house of representatives
subsequently modified the bill in order
to meet this objection. In the revised
form I believe that the bill, coupled
with action already taken by the con-
gress to revise it's rules and procedure,
furnishes the foundations for an enec-
tive national budget system. I ear
nestly hope, therefore, that one OF the
first steps taken by the present session
of the congress will be to pass the
budget bill.
Marked Gain in Finances.
The nations finances have shown
marked Improvement during the past
year. The total ordinary receipts of
81. 694. 600. 900 for the fiscal year 1920
exceeded those for 1919 by $1,542.000, o.
600, while the total net ordinary ex-
panditures decreased from SIS, 514, 000,-
600 to $6,403, 00O, 900. The gross public
debt which reached its highest point
on Aug. 81, 1919, when 1t was 1885,
GOO, 900, had dropped on Nov. 80, 1920,
to $24,175, 100000. There also has been
marked decrease in holdings of gov
eminent war securities by the banking
institutions of the country, as well as
the amount of bills held by the federal
reserve banks secured by government
war obligations.
This fortunate result has relieved
the banks and left them freer to finance
the needs of agriculture, industry and
commerce. 1t has been due in large
part to the reduction of the public
| debt. especially of the floating debt
/ but more particularly to the improved
distribution of government securities
among permanent investors. The ces-
| sation of the governments borrowings
except through short term certificates
of indebtedness has been matter OF
great consequence to the people of the
country at large, as well as to the
holders of "a serty bonds and Victory
notes, and has had an important bear
| ing on the matter of effective credit
control.
The year has been characterized by the
progressive withdrawal of the treasury
| from the domestic credit market anC
| from a position of dominant influence IN
| that market. The future course will nee.
essarily depend upon the extent to which
economies are practiced and upon the
! burdens placed upon the treasury, as well
as upon industrial development and the
maintenance of tax receipts at a suf-
| ficiently high level.
Big Bond Issue to Mature
The fundamental fact which at present
| dominates the governments financial sit.
uation rs that $7,5O00O0,0O0 of it's war in,
| debtedness natures within the next two
| and a half years Of this amount $780,.
! 100000 are floating debt and $1,000, COG, O0t
victory notes and war savings certificates
| The fiscal program of the government
must be determined with reference tt
these maturities. Sound policy demands
/ that the government expenditures be re-
| duced to the lowest amount which will
permit the various services to operate
efficiently and that government receipt:
| from taxes and salvage be maintained
| sufficiently high to provide for current
requirements, including interest and sink
| ing fund charges on the public debt. ano
| at the same time retire the floating deb
| and part of the victory loan before ma.
| turity
| With rigid economy, vigorous salvage
operations and adequate revenues from
| taxation. q surplus of current receipts
| over current expenditures can be realized
| and should be applied to the floating debt
All branches of the government should
| co-operate to see that this program is
realized.
cannot overemphasize the necessity
| ~ economy in government appropriations
and expenditures and the avoidance BY
the congress of practices which take
money from the treasury by indefinite OF
reyolving-fund appropriations The esti
mates for the present year show tha
over billion dollars of expenditures were
| authorized by the last congress in addi
tion to the amounts shown in the usua
compiled statement of appropriations.
Specific Appropriations Urged.
1l11ct the 1nlDOr