New-York tribune., 1921-03-20
Weeks Names a
Startling Figure as Total
for Thirty Months in
Speech at Pittsburgh
Biggest Sum Ever
Faced in Peace
Fordney Says People Must
Pay IA Billions of
Remaining War Debt

PITTSBURGH, March 19.-About
seventeen billions of dollars must be
provided by the Federal government
within the next thirty months to meet
''s running expenses and refundine
operations, Secretary Weeks of the
war Department declared tonight in
an address before the PITTSBURGH
Chamber of Commerce.
This" the Secretary said, "is an in
hnltely greater task than was ever
undertaken by any nation. in the world
IN time of peace, and there is no one.
skilled in financial operations though
ne may. be, who does not view the pros
pect with more or less alarm. With
tnls situation facing US it is the height
OF folly to undertake new commitmeI,
II they can be avoided, and assume
tnat no one will dissent from that
propositions"
The War Secretary discussed econ
omy IN government operations. reor-
ganlzation of Federal activities in
Washington, taxation and the tariff.
Urges Profits Tax Repeal
He urged repeal of the excess profits
cax' declaring that in period of fall
ing prices 1T was not an effective tax.
as probably would be shown when the
returns for this year we're published,
he said there were innumerable in
stances where concerns which made
large profits in 1919, paying a tax on
tnese profits, lost so much during 1920
that on the first of January; 1921, their
resources were less than they were the
hrst OF January, 1919.
Mr.. Weeks said the country had
reached point where it must make .
radical change. in its tariff system. New
problems associated with rates of ex
change, growing out of the war, made
the tariff more complicated question
tnan usual, he said, adding that it
would seem to him that the amount
of revenue which should be produced
from importations would be between
S50O,00o,00O and 5000, 900, 900 a year.
."Whatever may be finally deter
Mined" the Secretary continued, "it
would seem to me the duties imposed
should be based on the normal rate of
exchange, and that the Secretary of the
Treasury should have the power to
change the rates of duty to correspond
to any material change in the rate of
exchange"
Taking up reorganization of govern
ment departm ents, the Secretary as
serted that during the recent enormous
expansion of government activities no
attention had been paid to the proper
distribution of those activities among
the departments. The result was an
expensive and inefficient odge-podge.
He advocated an entire regrouping Of
the minor divisions of the various de-
partments and urged a drastic reduc-
tion in the number of Federal en-
ployees and consistent increase in
the salaries of those retained.
Secretary Weeks, Congressman j. W.
Fordney, Secretary of the Treasury A.
w. Mellon and Secretary of Labor j. j.
Davis were the honor guests at the an
nual banquet of the chamber.
Fordney Advocates Tariff
Congressman Fordney, one of the
principal speakers, took as his subject
"Our Nations Difficulties" He dis
cussed taxation at length and declared
for tariff Legislation to maintain Amer
lean markets 'if the American stand
ards of living are to be continued"
The portion of the present gross
debt of America to be paid by the
American people is approximately
$4,000, 100000, he said, adding that II
sincerely trust a way will be found to
fund practically all short time obliga-
tions into long time government bonds,
and thus distribute the debt over a pc
riod of years. Upon it's successful ac-
complishment an acceptable revision of
our tax laws depends in no small
measure"
During the next year." he con-
tinued "our tax laws will not be as
productive as in the past, due to the
decreasing earnings of individuals and
companies in general throughout the
country. From the standpoint of reve-
nue. alone the situation is a serious
ductive unless there is income on
which the tax is to be paid