The Tomahawk., 1920-12-16

I
slider that the display of an immediate
disposition on the part of congress to
remedy any injustices that may have
| shown themselves in our own national
! life will afford the most effectual Off
set 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. The
United States is of necessity the sam
pie, democracy Of the world, and the
triumph of democracy depends upon
its success. ~
Urges Early Budget Law.
Recovery from the disturbing and
sometimes disastrous effects Of the late
war has been exceedingly slow on the
other side of the water and has given
promise, venture to say of early COM
pletion only in our own fortunate
country, but even with us the recovery
halts and is impeded at times and
there are Immediately serviceable acts
Of legislation which it seems to me we
ought to attempt, to assist that recov-
cry and prove the indestructible recup-
erative force of a great government of
the people. One of these is to prove
that great democracy can keep house
as successfully and in as businesslike
fashion as any other government. It
seems to me that the first step towards
proving this is to supply ourselves
with systematic method of handling
our estimates and expenditures and
bringing them to the point where they
will not be an unnecessary strain upon
our income or necessitate unreason-
able taxation, in other words a work
able budget system, and I respectfully
suggest that two elements are essential
to such system; namely, not only
that the proposal of appropriations
should be in the hands of a single body
such as a. single appropriations COM
mittee in each house Of the con-
gress, but also that this body
should be brought into such co-opera-
ton with the departments Of the gov
eminent and with the treasury of the
United States as would enable it to
act upon a complete conspectus of the
needs of the government and the re-
sources from which it must draw its
income.
Explains Veto Action.
reluctantly vetoed the budget bill
passed by the last session of the con-
gress because of constitutional objec-
tion. The house of representatives
subsequently modified the bill in order
to meet this objection. In the revised
form I believe the bill coupled with
action already taken BY the Congress
to revise its rules and procedure fur
nishes the foundations for an effective
national budget system. I earnestly
hope that one of the first steps taken
by the present session of the congress
will be to pass the budget bill. y
Finances Show Improvement.
The nations finances have shown
marked improvement during the last
year. The total ordinary receipts of
$6,694, 100000 for the fiscal year 1920
exceeded those for 1919 by $1.542,O
900, while the total net ordinary ex-
'penditures decreased from $1S,514,0 00,-
600 to $6,4O3, 100000. The gross public
debt. which reached its highest point
on Aug. 81, 1919, when it was $685.
100000, had dropped on Nov. 80, 1920,
to $24,175,O 100000. There also has been
a marked decrease in holdings of gov
eminent war securities by the banking
institutions of the country as we'll as
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 agri-
culture, industry and commerce. It
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 perman-
ent investors. The cessation Of the
governments borrowing except thru
short term certificates of indebtedness
has been matter Of great consequence
to the people of the country at large,
as we'll as to the holders of Liberty
Bonds and Victory notes, and has had
an important bearing on the matter
of effective credit control. The year
has been characterized by the progress
sive withdrawal of the treasury from
the domestic credit market and from
position of dominant influence in
that market. The future course will
necessarily depend upon the extent to
which economics are practised and up
on the burdens placed upon the treas
ury, as we'll as upon industrial develop
ments and the maintenance Of tax re-
ceipts at a sufficiently high level.
Urges Strictest Economy.
present dominates the governments
financial situation is that seven and
half billions of it's war Indebtedness
mature within the next two and half
years. OF this amount, two and
half billions are floating. debt and five
billions Victory notes and War Saw
ings certificates. The fiscal program
Of. the government must be determined
with reference to these maturities.
Sound policy demands that the gov
eminent expenditures be reduced to
the lowest amount which will permit
the various services to operate eff
GENTLY and that government receipts
from taxes and salvage be maintained
sufficiently high to provide for current
requirements, including 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 econ
omy, vigorous salvage operations and
adequate revenues from taxation,
surplus of current receipts over, cur
rent can he realized and