Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-03-22
SEVENTEEN BILLIONS
NEEDED To RUN j. 6.
FOR NEXT 80 WEEKS

PITTSBURG, Pa. March 19-Some-
thing like seventeen billions of dol
lars must be provided by the fed
eral government within the next
thirty months to meet its running
expenses and refunding operations,
Secretary Weeks, of the war depart
ment, declared tonight in an address
before the Pittsburg Chamber or
Commerce.
"This," the secretary said, "is an
infinitely 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 he may be, who does not
view the prospects with more or less
alarm. With this situation facing
us, it is the height of folly to
undertake new commitments II they
can be avoided and [ assume that no
one will dissent from that PROPOSE
ton"
The war secretary discussed econ
omy in government operations, re-
organization of federal activities N
Washington. taxation and the tariff.
He urged repeal of the excess profits
tax, declaring that in a period Of
falling prices it was not an effective
tax as probably would be shown when
the returns for this year were pub
lished. He said there were innum-
cradle cases where concerns which
made large profits in 1919. paying
tax on these profits, lost so much
during 1920 that on the first of
January, 1921. their resources were
less than they were the first Of Jan
uary, 1919.
Turning to the tariff. Mr.. Weeks
said the country had reached a point
where it must make a. radical change
in it's tariff system. New problems
growing out of the war. made the
tariff more complicated question
than usual. he said, adding that it
would seem to him that the amount
of revenue which should be produced
from importations would be between
five and six hundred millions of dol
lars a year.
"Whatever may be finally deter
mined" the secretary continued, sit
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 cor
respond to any material change in
the rate of exchange. Otherwise, I'M
der conditions like the present, no
tariff rate could be imposed which
would protect this country against
some nations without placing an I'M
| bearable burden on those countries
where the rates of exchange are
nearly normal.
Our first purpose in the past and
now has been to provide for our own
| needs in revenue and protection
but in framing new tariff law,
| we must give some consideration, if
FOR no other than the most selfish
reasons. to our markets. To impose
a greater duty than the ordinary diff
ference in the cost of production
would mean destroying the POSSIBLE
lty Of European markets. especially
where the rate of exchange is such
that they cannot purchase from us
except under the greatest stress"
Taking up reorganization of gov
eminent departments the secretary
asserted that during the recent
enormous expansion of government
activities no attention had been paid
to the proper distribution of those
activities among the departments
with the result that there is an ex-
penslve and inefficient hodge podge.
! He advocated an entire regrouping
of the minor divisions Of the various
departments and urged a drastic re-
| duct1on in the number of federal
| employees and a consistent increase
IN the salaries of those retained.