The Birmingham age-herald., 1920-12-14
CONGRESS LEADERS DOUBT TREASURY'S
 ABILITY ID PAY
Ways and Means Chairman Fears Four Billion Annual
 Tax Levy Will Be Inade-
 quate for Requirements
By Associated Pres.

Washington, December 13.--Concern of congressional leaders as to ability of the treasury to meet the sf,50o,O0ooOo of war debts maturing within the next two and half years, was indicated by Chairman Fordney of the ways and means com mittec today, both in the House and at the opening of hearings hy his com. mittee on revision of revenue legislation
 The ways and means -eoru1uit ttAs .eisair. man frankly expressed douJt as to whethor the estimate of A.q)o. .ooo GOO an nqlai tax levy would be Sufficient to meet the requirements of the govern ment over the period of naturng treas uryi certificates and victery notes. As a solution, he advocated reverting into long term bonds of certificates now az gregating E, 50o. .0o0, GOO as well as the first issue of war saving stamps and the victory note issue
 Adoption of such 2 solution. Mir. Ford hey declared, probably would enable a reduction of taxeS below Secretary Hous- tons estimate of 4,000, GOO. It also, he said, would permit a tax levy for seg- eral years sufficient only to cover cur rent fiscal needs of the government and interest on the public debt and sinking fund operations
 WITNESS DISAGREES
 The fiIsl witness before the committet at the tax revision hearing. howevet disagreesi with MT. Fordney on the prl posal. In reply to questions by RepIe sentative Isongwortl1, republican, OhIo, pr. Thomas s. Adams. treasury tax ti- pert and economist. said the prograrn1e of the treasury appeared to provide sgf ficient revenues to take care of he maturing obligations except the saving stamps which would be paid through inc sale of other issues of such stamps as each yearly issue falls due. He adted, however. that. the treasury estimated for 'taxation could stand no reduction II the programme were to be carried though and the maturing obligations met.
 Politics entered into the discussion of methods of paying off the war de'bf fwhen the committee reached the subjet late in the day. Representative Carmel dem ocrat, Texas. vigorously opposn the Fordney suggestion. saying itlmeant that the government was "breakig faith with the people whom 1t had fassured make the liherty bonds retat their proper level of market value To float another loan, MT. frner as- serted. would materially Y4ken the prices of Liberty bonds. M
 When we passed those ldcJ bills and tax measures we told the Hpie certain things.'' MT. Garner contfued. "We surely cannot go back of things would be breaking faith Ah the peo- ple.'' "
 Well" Mir. Fordrey cof4sred. 'these things were the work of tie democratic administration But in9snsfch as we have it, it has now becopS an obligation of the republican party Ind air1 10 do all can to get rid q t without bur dening our people with Axation-"
 Discussion of actual ht revision ques- tions by the committed developed an sl- most umanimity of 4iapn among It's members with respect to repeal of the excess profits tax. Pr. Adams, speak ing for the treasury. Icorcurred on his point but warned tfh committee that Congress Should keep in nind diificulpes in, the collection of al saes tax