The Kenna record. (Kenna, Roosevelt County, N.M.) 190?-1924, 1921-03-18
MELLON ASKS THE PUBLIC
TO HELP CONSERVE
RESOURCES
ASKS FOR THE BUDGET PLAN
The Nation Cannot Afford Extrava-
gance and SO Far AS Possible IL
Must Avoid New Expendit-
ures.

Washington, - Secretary of the
Treasury Mellon, in his first official
statement made public in the form
OF letter to bankers, appealed to
the people generally" to stand for
rigid economy in governmental ex-
penditures and urged the immediate
establishment of a national budget
system.
The secretary discussed at length
the nations financial condition. de-
claring that the showing made in the
last eight months has been "particu.
larly encouraging" There are, how
ever, heavy drains to come on the
treasury this month and next. he
added, and these require the fotation
of more short term certificates of in
debtedness, announcement of which
he made coincident with the letter.
Economy Is Demanded.
"The nation cannot afford extrava-
gance," Mr.. Nelson asserted, "and so
far as possible it must avoid entering
new fields of expenditures. Figures
on current operations of the govern
ment show that the country's fin
ances are sound but that the situa-
tion calls for the utmost economy.
"The heavy requirements OF the
government on account of necessary
expenditures, including interest and
sinking fund on the public debt, and
the maturity of $7,5O0,OOO,OOO in
short dated debt in the next two years
or thereabouts, make it imperative
that the greatest care and economy
be exercised in matters affecting gov
ernment expenditures.
"The people generally must become
more interested in saving the govern
ment's money than in spending it. A
national budget sys-
tenn must be established and the gov.
ernments expenses brought into re-
lation to its income"
Treasury Saves Money.
The belief was expressed by Secre-
tary Mellon, however, that the first
nine months of the fiscal year or to
March 81, would show the treasury
has made ends meet with a slight sur
plus to use against the great war
debt. Payments on the war debt must
necessarily be slow, he said, explain
ing that the heavy payments to the
railroads would seriously hamper
previous plans to lower the debt.
The issues of certificates announced |
will aggregate $4OO, 100000 and will
bear interest at B1s per cent, half
having a maturity date of one year
and the remainder for six months.
Both issues win be accepted in pay
ment of income and profits taxes.
s5Oo,OOo,oO Is Needed.
He said $5OO,O0O,OOO in certificates
much be paid off March Is and an ad-
iitional S11S,OOO,OOO month .ater.
Besides these needs, there is 10 be
paid the semi-annual interest on Lib
srty bonds on March 15. a payment
Of about s75,OOO,OOO The treasury
llso must make payments to the rail-
'oads during March, which Mr.. Mel
on estimated at 100000, 900.
To partially offset the heavy outsO,
he regular quarterly payment of ia
lome and profit taxes is due March
Is, from which the treasury hopes to
elease approximately $500OO0.OOO
lsed up in retiring the certificates
This tax payment, therefore, will be
lue on the same date Funds OBJ
aimed from the new issues of certih-
ates then will become available for
airing for other debts of which the
abroad payments and the small pre-
ious issues of certificates constitute
he greatest amount