The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1921-01-08
MCADOO REPUWIATSES THE
HOUSTON PROGRAM


William q. McAdoO, the war sec
rotary of the treasury, has issued d
statement in which he ropudiates and
opposes the entire Houston program.
! Secretary Houston says there has
been no deflation.
Mr.. McAdoo says: THE point
wish TO impress is that dehation has
hecn carried SO far and with such
rapidity that we must now reconsid-
Ell the situation, make an effort to pre-
vent further distress and suffering,
and bring about a revival of industry
and confidence"
! Secretary Houston and Governor
Harding say there has been no re-
striction of credit
MIR. McAdoO says that in some parts
of the country credit is almost en-
tirely wanting. and in many lines of
legitimate business and industry great
losses are being sustained because Of
the restriction OF credits"
Secretary Houston says the war
finance corporation should not be re-
vived. and has used the whole pow
er of his office TO prevent the revival
al.
Mr.. McAdoo says 1.-The revival of
the war finance corporation is highly
desirable" and goes on to prove why
this Is the case.
Secretary Houston says that the
public must he taxed to the limit be-
cause the people must be compelled
to pay oil the entire floating debt and
most OF the victory notes within the
next two years and q half.
10
den should he lightened, and can be
by funding $2.0O0.00O,000 of the
floating debt during the next two
years. Why should we continue high
taxes merely because a relatively few
people think it sounder policy to COM
pei the present generation to pay still
more of the war cost than to pass a
reasonable amount oil it on to future
generations?"
Secretary Houston favors increased
taxes on moderate incomes.
Mr.. McAdoo says: II am opposed
To increased taxes on moderate in
comes"
Secretary Houston says that moth
ing to relieve the situation can be
done. His testimony before the
congressional committees showed him
as taking the stand that the farmers
ought 10 be ashamed of themselves
for asking any relief. that they ought
To be compelled to continue in suffer-
ing. and without murmur accept
the bankruptcy which nc has prepar-
cd for them. He has tried to indict
them as protiteers.
Mr.. McAdoo says: we cannot cx-
excuse inaction nor dismiss the matter
with mere observation that deflation Is
necessary and that farmers must take
their medicine along with the rest of
The country. =" When colossal loss
es like those the farmers are now
sustaining ovcrtake them. every line
OF industry suffers. factories close.
business shrinks, labor is thrown out
of employment, and confidence Is So
riously shaken. t~+ 1t is the inn
perative duty of those i'm civil author
ity and of those who control credit to
exercise their powers so as to pre-
vent needless distress and preserve
confidence"
Everything tho Manufacturers Rec
ord for months has been saving about
treasury policy, Mr. McAdoo says. Ne
Yer. we believe. since the government
began has a secretary of the treasury
had his vicious and ignorant theories
So Knocked to pieces and rcpudiatcd
by u predecessor as in this case.
Meantime, the resolution directing
the revival of the war finance COR
poration has passed both houses Of
congress and has gone to the prcsi-
dent. The Washington Post says that
the president will be compelled to in
tcrposc veto, as otherwise it is dif-
Hcult To see how Mr.. Houston could
maintain his prestige as head OF the
treasury department
That prestige he has already lost.
II the president vetOes the measure, it
will be passed over his head by almost
unanimous votes i'm both the house
and the senate. There is already
nothing left for Secretary Houston
but resignation. He must go out.