Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1921-03-09
MELLON APPEALS
0 ENTIRE NATION
For RIGID ECONOMY
New Treasury Secretary,
! in Letter, Makes His First
Official Statement.
urges THE FORMATION OF
4 NATIONAL BUDGET SYSTEM
5Missivc Written to Bankers
Discusses at Length Nations
Financial Condition.
BSIG DEBTS TO PAY soon
k;liort-Tcrm Cert rtiiicntcs Need to BE
FlOnicd 10 Meet Coming
Expenditures.
URGES THE FORMATION OF
NATIONAL BUDGET SYSTEM
BIG DEBTS TO PAY sooN
Certificates Need TO BE
f'lonicd TO Meet Coming
Expenditures.
NE AssoclntcA rress.

lBy Associated Press.
WASiiINGTON. Mnrch S. Sccrc-
airy Mellon. OF the Treasury. in his
FIRST Official statement. made public
onight In the form of a letter to
bankers, appealed 10 the people
Generally 10 stand for rigid econ
S,my in governmental expenditures
bad urged the Immediate establish
snont OF national bulge; System.
The new Treasury Secretary, in
his letter. discussed at l"ngth the
aiations financial condition. declar-
ing thn, tho showing made In The
as; eight months had been par
4 icularly encouraging" Thcr. are.
however, heavy drains 20 come on
he Treasury this month nnd next
Alc said. and these require tho ncti-
I ION OF more sbort-tcrm certificates
III indebtedness. announcement OF
(Which h. made co!ncidcnt with tho
4 ett"r to thc bankers.
'rh" nation cannot AFFORD oxtr..va-
asance," sir. Mellon asserted. and. so
FAR A. possible. It must avoid enter
sng new nclGs ot expenditures. Fig.
I ares on currcn, operations Of the
government show tnht the country's
Finances arc sound but that the SIS
ration calls for tho utmost economy
Heavy Debts Nrrcssitnte Economy.
4 The heavy requirements Of the
government Oh account %: necessary
Expenditures, Including interest and
sinking fund on the public debt. and
he maturity OF $500, 100000 In
2ihort-dRtcd debt in the mex, two
8'.ars or ,hereabou;s make II i'm
f1erat.rc That the greatest care and
economy bc exercised in matters af-
Gtec,lng government expenditures.
The people generally mus; become
more Interested in saving the gov
3,TnineniS money than In spending
r. Il thorough going national bud
ISet system must be established and
hr govornmcnt's expenses brought
] nto relation 10 its income"
The belief was expressed by the
! 2acw secretary however. that the frst
pine months or the fiscal year. or 10
March II. would show tn. Treasury
! pad made ends meet with . slight
Hsurplus 10 use against the groa, war
9lebt !rograss in tho war debt must
1nccossarily hc slow. he said. cxn!ain-
3.hs that the heavy payments to The
6rdi!roads would seriously hamper
previous plans 10 lower tho debt.
The issues OF certificates announced
1will aggregate si0O.C00,OOo. and win
bear Interest at 5ia per cent. half
having a maturity date Of one year
ftnd the remainder for six months.
IE.n'h
ffncnt Of incom" and profit taxes.
I"c"m" Taxes viii Help IA, Debts.
In notifying the bankers OF the is
sues. Mr Mellon said he felt it his
iduty TO inform them n the outset Of
]his administration OF the probable
requirements o; tn" government in
4 he coming months and TO say some
thing concerning its financial pro.
gram. He said that s5oG.OO0 coo In
certificates mast he paid on March
-. and an additional sllS.0oV,0oo Il
month iatc. Besides these needs.
there is TO bc paid the scmi-annual
Interest on Liberty bonds on March
ila. payment Of about 5000 oo0
BThc Treasury also must make pay
menis 10 tho railroads during March.
(which Mr.. Mellon estimated at $500
100000
TO partially Offset the heavy outgo.
3thc regular quarterly payment OF in
come and profits taxes is due March
us, from which the Treasury hopes 10
lrcaiize approximately $500. .0OO. O00.
5This tax payment. therefore. will be
fused up in its entirety in retiring
1.-THE certificates due on the same dat.
Funds obtained from the now issues
of certificates then will come avaii-
fable for caring for other debts a;
which the railroad payments and tho
small previous issues of certificate.
constitute the greatest amount.
Mr.. Mellon also observed optimis-
tic signs in the general financial con.
2ditiOn throughout the country moi :
ling particularly that the vast ouan
iitics OF government securities wcr,
widely spread and that each new il,
sue Of government paper was being
taken more largely by investors. lie
|citcd market quota tions on Treasury
certificates showing that they had
been quoted at par or at Il premium.
as an indication Of healthy and sound
finance. Those now held by banks.
Treasury records showing that many
financial institutions were heavy
holders-arc being gradually ab-
sorbcd by real investors" MIR. Mel
Ion said. adding that the situation
generally AZ regards the loans re-
CURED by the government was much
improved over conditions a few
months ago.