Evening star., 1921-03-11
NATIONS FINANCES
+ PLAINLY STATED
Secretary Mellon Discusses
Present Conditions and
Outlook.
BY 1. A. FLEMING.

Secretary Mellon of the Treasury
has directed to the president Of
hevery bank and trust company a
circular, letter, setting forth a
: length the condition of the Treasury
tte future.
From the document We quote as
follows:
"On the basis of the Treasury daily
statements, the current operations
of the government for the first eight
months of the current fiscal year
through to February %. 1921, show
an excess of ordinary receipts over
ordinary expenditures amounting to
, S1S6.115. .505.03. This showing is par
ticularly encouraging in view of the
fact that there have been extraordi
nary expenditures. but only two quar-
terly payments of income and excess
profits taxes. Ordinary receipts for
hhe eight months were S3,4S3,411.-
lil.36 and disbursements were S3.-
2lT2s5.655.SS, at the rate of five bill
lions a year.
War expenditures were S150.000.-
900; navy. s45O,00O,00O. and abou,
S51O,o00.O00 in payment of interest on
public debt, and total of S475,000.-
600 payments to the railroads under
the transportation act. or a total OF
S2,225 100000 under these four main
headings. In the four months that
remain there will be two more quar-
teriy payments of income and excess
profits taxes, both based on the busi
ness of the calendar year 1920.
While it is impossible to estimate
tnese payments with accuracy, and
the prospects are that the expend.-
lures will continue heavy, the Treas
ury expects that the first three
months of 1921 as well as the COM
pleted years operation will show
some surplus of receipts over ex-
penditures.
Debt of Nation.
The gross debt of the nation Feb
ruary IS, 1921, amounted to S25,051,-
tS4.s2S.2S. while on the same date the
floating debt unmatured was $780,
656,000. These figures contrast with a
gross debt on December 81, 1920, of
s23.9S2.22416S. The progress to be
made during balance of the current
year through the retirement of the
gross and floating debt will depend.
OF course, on the extent of the de-
.mands upon the Treasury and the
salvage. This progress is likely to be
hindered by heavy railroad payments
to be expected the next few months.
These figures as to the public debt
and the current operations of the
Treasury show that the country's
finances are sound. but the situation
calls for the utmost economy.
a thoroughgoing national budget
system must be established and the
governments expenses brought into
relation with its income.
"Financial Democracy
This is the title of an address to be
delivered this evening at the Univer-
sIty Club by John Jacob A. Arnold.
one of the leading financiers of the
nation and former vice president of
the First National Bank Of Chicago
Personal Mention.
Peter A. Drury. president of the
Merchants Bank, was at his desk this
morning after an absence of several
days, due to illness.
Local Securities.
Local securities were again quite
active with considerable interest
showing in Capital Traction shares
The unexpected increase of 81 a year
in the dividend was none the less well
come to the shareholders.
The effect on the stock was an ad-
vance of 1-2 to 3-4 of a point, or to
IS Ia. and, at the close. SIS 1-2 Rail-
way As were slightly easier, selling at
5S 3-4 to So IL. AnacoStia and Poto-
Irac River 5s brought 81 at the opening,
followed by an immediate drop to Sc.
Washington Gas IL per cent notes.
102 ..
Continental Trust shares. 1o7 to
JOG 1-2.
Wall street Notes.
The stock market was spotty this
morning-there were some strong
spots amid considerable weakness
yesterday there were none
American Steel Foundries for the
year 1920 showed a surplus after
charge and federal taxes of s4,496, 600
or s2s6.000 in excess of 1919
The Victor Talking Machine de-
ciared Wis share on the preferred
stock and $40 a share for the quarter
on the common stock. Three months
ago SIS a share was paid on the com
mon.
Chandler Motors paid the regular
s290 share quarterly dividend The
president declares that business is
much better
Worthington Pump earned s1.S5 a
share on the common stock in 1920.
as compared with SIPS earned in
1919.
Daniel Willard of the Baltimore and
Ohio and II. b. Thayer of the Amcri-
can Telephone and Telegraph Com
Iany are both moderately optimistic
Chicago and Eastern Illinois has
made a final settlement with the
About 10000 employees of the Penn
sylvania system have been dropped
Special session OF Congress starts
April 4.
A Healthy YearIing
The hrst anniversary of the Lib
erty National Bank as national in
stItution. having been converted into
u national bank from the Liberty
savings Bank. which was organized
IN October, 1917, was celebrated to-
fay- The bank moved into its new
home 18th and | streets. one year
ago, and this locality has shown
remarkable growth since the new
building was completed The hank
has gained in deposits during the
year S6O0,00 The officers of the in
ktitution are: George o. Watson
president. Dr. William l.. Robins
vice president; Grant W. Taylor. vice
president: Edward j. McQuade, cash
Ter James B. Skinner. assistant cash
1er' ana NJ. j.. Calnan, assistant