Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-12-07
Wilson'S VdIedictOry
Address to Congress
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a.. on.ra,ion with the departments OF
Io .rovernment and with the treas
~ ~, of the United States as would
snoble it to act upon a complete con-
snectus Of the needs OF the govern
mont and the resources from which 1t
must draw it's income.
reluctantly vetoed the budget bill
,osspd by the last session of the Con-
pprssS because OF a constitutional OBJ
ssction The House of Representa-
lives subsequently modified tn bill in
order 10 meet this objection. In the
yevised form | believe that the bill,
couplpd with action already taken by
the congress to revise its rules and
procedure, furnishes the foundations
Tor an effective national budget sys-
tenn. l. earnestly hope, therefore.
hat one Of the first steps token BY the
present session of the Congress will
X to pass the budget bill.
Finances Show Improvement
The nations finances have shown
marked improvement during the past
year. The total ordinary receipts of
N604 900, 900 for the fiscal year
i99O exceeded those for 1910 by
S1,A2.0 900, while the total net
ordinary expenditures decreased from
SlS.514,OOO, 900 to Sc, ,403 900, 900.
The gross public debt, which
reached its highest point on August
81, 1919. when it was S26 500 ,OO0.-
O0O. had dropped on November 80,
1920. to S24. .175 200, 600. There has
also been n marked decreased in
holdings Of government war securi-
ties by the banking institutions Of
the country as well as in 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 agri-
culture, industry and commerce.
It has been due in large part to
ele reduction of the public debt,
Especially of the floating debt, but
more particularly to the improved dis
tribution OF government securities
among permanent investors. The ces-
satiOn Of the governments borrow
ing except through short term certifi-
Gates Of indebtedness has been mat
ter OF great consequence to the peo-
pie Of the country at large, as well
as to the holders Of Liberty bonds
and Victory notes, and has had an
important bearing upon the matter of
effective credit control.
The year has been characterized by
the progressive withdrawal OF the
treasury from the domestic credit
market and from a position Of dom
inant 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.
!. Rigid Economy Necessary
The fundamental fact which at
present dominates the government 8
financial situation Is that seven and
half billions Of its war indebted =
ness 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 savings certificates. The fiscal
program of the government must be
determined with reference to these
maturites.
sound policy demands that the
government expenditures be reduced
70 the lowest amount which will per.
mt the various services TO Operate
omciehtly and that government re.
u,Pw P from taxes and salvage bt
Msihtained sufficiently high to pro
,ue TOT currcn. requirements, includ
s interest and sinking fund charges
w. Sn the public debt, and at the same
",S re,irc the floating debt and par
W;Me NE iCtory Loan before maturity
nn nn rlgid economy, vigorous salyag,
tr"u, tr"tlohS and adequate revenue,
rsOai O taxation, surplus of curren
ho hptS ,oI over current expenditures caI
NJ 'ssul'hed and should be applied 7,
sovon suv moa'lng debt, All branches Of tb,
Stt'n'lent e. should co operate to 90,
a' tn'S program is realized,
,i,p rahllot van over emphasize the neces
nrio my vi economy in government ammo
avoidanS aid'S ana expenditures and tn
tiU,uanGe tiooU by the Congress of prac
troa,, htes which take money from tb
hanSury by indefinite or rcyoIvin
for happropriations. The estimate
sb,InIHIe nHe present year show that owe
sutHaGin tIHal.Gn dollars of expenditures wcr
sSdGioFlSed by tn" last Congress !,
usuoi u.Ilon to the amounts shown in tb
prion compiled statements of appro
M, orses Direct Appropriations
por,an rnls Strikingly illustrates the i'm
spnronscs spncs OF making direct and specifi
H. '"oipriatlons. The relation betwee,
pndi1rrreht receipts and current ex
he hU,'ures lures OF the government durinr
Snri present fiscal year, as we'll n
Year ths last half of the last fisca
ordinIamas been disturbed BY the extra
reaS%y burdens thrown upon III
II nS"ry c"nTy by the transportation act
avLrUonahertion with the return Of RI
"mNoads to private control VI VI
k,spV koVer 5000, 900, 900 has alresd
~ sldd sgsld 70 tho railroads under thi
Sss 1900 900 900 during the % nresen sm'
year. and 1t is estimated tha