The Prince George's enquirer and southern Maryland advertiser. (Upper Marlborough, Md.) 1882-1925, 1921-01-07
u. S. FACING
HUGE DEFICIT
Houston Warns Committee Not to
increase Burden of Treasury;
Indicates Bonus Opposition.
NEW BURDENS PREDICTED.
Secretary Of Treasury Outlines Fin
ance Problems to Senate Commit
tee-He Declares We Face
2Ooo,oo0OO. Deficit This Year.


Treasury Eoust on, appearing before
the Sena e Fl ance Committee. de-
clared himself gainst the restoration
of the War Finance Corporation, pre-
dicted deficit of $210G,OOO,O00 in
government finances this fiscal year
anu $1,5C0,O00,COo the coming fiscal
year, opposed he exteAsion of the
TALKED of billion-dollar credit to Ger
many, and expressed the view that
new sources Of revenue must be found
and no new burdens imposed or the
treasury. The estimated deficit of the
current fiscal year was $1.0OO,OOO.O0O
more than had previously been esti-
rated.
While he did not give an expression
on the bonus bill, Secretary Houston's
statements regarding the condition of
the treasury and the prospects for
the evenues were looked on by men,
bers of the commi tee as clearly indi-
eating his oppoSitior to any cash tonus
plan. He was called before the COM
mittee primarily on the bonus bill. but
he did .,ot complete his statement and
will appear before the committee again
won lay.
The secretary's opposition to the
War Finarce Corporation was inter-
preted by senator's as meaning veto
of the bill to restore that body recently
passed by Congo :. And his indirect
to ;c O
meaning that a cash bonus plan will
not be approvet. by Congress this ses-
sion.
Referring generally to legislation de-
signed to aid agriculture by means
proposed in Congress. he said: Amy
one that holds out to the f>rnlers the
idea that these efforts will return tfeir
war prices is their worst enemy"
Only a few days ego Senator Nc
Cumber. acting chairman of the Fin
ance Committee, Sc before the senate
In speech figures which showed the
need for economy. After that speech
many senators salt. they were con-
cerned over the governments fiscal sit
uation and that they would insist on
StouOilly al CSC-S PoSSibiC tuih hS
data given by Secretary Houston deep
ened the impression already made on
senat ,rs as to the hece ssity for holding
tight the pursestrings.
While much of the information given
by Secretary Houston was contained
in his annual report. it attracted the
more attention because Of the fact
4h.,t bn RI fho foo
verbally.
After folecasting a deficit In the
country's revenues of 81, 0O.000.OUN
this fiscal year an another deficit of
81 .5OO.OOO,OO0 the next fiscal year. Mr.
Houston said new ways and means
must be discovered to find money. and
no new burdens added.
Mr. Houston sale that aside from
the public debt, the ordinary receipts
for his year would exceed ordinary
expenses by about $SOO,CO0OOO and
next year the excess would be $780,
UOO,U0O These sums, he said. will fail
to lake care of the interest Oh the ua-
tional debt, which is about Sl,OOO.OO0.-
0OU annually. In addition the interest
for aud sums laid aside annually to
retire the public debt.
"We face, in tddition, the fact that
many sources of revenue are declining,
so we will have ~ look around for new
sources to tap without placing greater
burdens on the treasury" the secre-
tary told the committee.
AS Secretary Houston proceeded
with his discussion on the national in
debtedness, Senator Smoot said: "It
will take us thirty-three years TO pay
off our national debt under existing
law"
Discussing the War Finance Cor
poration, Mr.. HoEstOn said:
~ have been opposed to the resump.
ton of the War Finance Corporation.
American exports are larger now than
before or during the war"