Arizona republican., 1921-03-09
MELLON APPEALS. FOR ECONOMY IN EXPENDITURE OF
 NATION $ FUNDS
New Secretary of Treasury Urges Immediate Estab- lishment of Budget System In Government Expendi- lures

WASHINGTON, March s.-Secre- tary Mellon of the treasury. in his first official statement. made public to- night in the form of a letter to bank CTS. appealed to people generally" to stand for rigid economy in govern mental expenditures and urged imme- diate establishment of a national bud- get system.
 He discussed the nations financial condition, declaring that the showing made in the last eight months had been particularly encouraging" There are, thowever: heavy drains to come on the treasury this month and next, he said. and these require more short serm certificates of indebtedness, an- nouncement of which he made coin cident with the letter.
 The nation cannot afford extrava- gance," he asserted, "and so far as possible it must avoid entering new fields of expenditures. Figures on current operations of the government show that the country's finances are sound, but that the situation calls for ! utmost economy.
 "The heavy requirements of the gov ernment on account of necessary ex- penditures. including interest and sinking fund on the public debt and the maturity of s7,500,000,000 in short dated debt in two years or thereabouts, make 1t imperative that the greatest care and economy be exercised in mat ters affecting government expendi- lures.
 The people generally must become more interested in saving the govern ment's money than in spending it. A thorough going national budget sys- tenn must be established and the gov ernment expenses brought into rela- ton to its income.'
 He expressed the belief. however. that the first nine months of the fiscal year, or to March 31. would show that the treasury had made ends meet, with a slight surplus to use against the war debt Payments on the war debt must be slow. he said, explaining that the heavy payments to the railroads would hamper previous plans to lower the debt
 Issues of certificates announced will aggregate s400, 100000 and will bear interest at 51s per cent. half having q maturity date of one year and the re- . nainder for six months. Both issues will be accepted in payment of income and profits taxes
 Tn notifying bankers MT. Mellon said he felt it his duty to inform them oi the probable requirements of the gov ernment and to say something con- corning it's financial program. He sait $500, ,000, 900 in certificates must bt Ddld Or1 MaTcn 10, ana an auultlOna s11S.000.000 a month later. Beside. there is to be paid the semi -annua interest of about s75,000,o00 on Libert, bonds March 15.
 The treasury also must make pay fments estimated at $200, 900, 900 to tn, railroads during March.
 -- To partially offset the outgo, tn quarterly payment of income and prof it's taxes is due March IS. from whicl the treasury hopes to realize approx imatelv s50Oo00 900. This tax pay ment. therefore, will be used in retir ing certificates due on the same date Funds obtained from the new issue then will become available for carin, for other debts of which the railroa, payments and the small previous is sues of certificates constitute tn greatest amount
 Mir. Mellon also observed optimfsti signs in the financial condition. notin that the vast quantities of securitie were widespread and that each ney issue was being taken more largely b investors. He cited market quotation on treasury certificates showing tha they had been quoted at par or at premium as an indication of health and sound finance.