The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1921-03-14
NEW SECRETARY
URGES ECONOMY
Mellon Issues First Statement From
Treasury-For Budget System

Washington, March 10.-Secre-
tary Mellon of the treasury in his
first official statement, made public
tonight in the form of letter to
bankers, appeal to the people gen.
orally" to stand for rigid economy
governmental expenditures and urg-
ed the immediate establishment OF
national budget system.
The new treasury secretary IN his
letter discussed at length the ma
tional financial condition declaring
the showing made in the last eight
months had been particularly en-
couraging." There are, however,
heavy drains to come on the treas
ury this month and next he said and
these require the floatation of more
short term certificates of indebted
ness announcement Of which he
made coincident with the letter TO
the bankers.
'.The nation can not afford ex-
travagence," Mr.. Mellon asserted
land 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 situ-
alton calls for the utmost economy.
"The heavy requirements Of the
government on account of necessary
expenditures including interest and
sinking fund of the public debt and
the maturity of $7,5oo,ooo in short
dates debts in the next two years
make imperative that the greatest
care and economy be exercised IN
matters affecting government ex-
penditures.
"The people generally must be-
come more interested in saving the
governments money than in spend
ing it. A thoroughgoing national
budget system must be established
and the governments expenses
brought into relation to its income"
The belief was expressed by the
new secretary, however, that the
first nine months of the fiscal year
or to March 81 would show the trea-
sury had made ends meet with a
slight surplus to use against the
great war debt. Payments on the
war debt must necessarily be slow,
he said, explaining that the heavy
navments to the railroads would Sc
riously hamper previous plans to
lower the debt.
The issues of certificates announc-
ed will aggregate s4O0,O00,OOO, and
will bear interest at IL per cent,
half having a maturity date of one
YEAR and the remainder for six
months. Both issues will be accepted
in payment of income and profits
taxes.
In notifying the bankers of the
issues. Mr.. Mellon said he felt it his
duty to inform them at the outset of
his administration of the probable
requirements of the government IN
the coming months and to say some
thing concerning it's financial pro-
gram. He said that s50O,O0o,O0O in
certificates must be paid off March
Is, and additional s11s,o00,o0o a
month later. Besides these needs,
there is to be paid the semi-annual
interest on Liberty bonds on March
Is, payment of about S75,ooo,-
600. The treasury also must make
payments to the railroad during
March which Mr.. Mellon estimated
at S2OO,000,000.
To partially Offset the heavy out
90 the regular quarterly payment of
income and profits taxes is due
March Is, from which the treasury
hoped to realize approximately
$500, 100000. This tax payment,
therefore, will be used up in retiring
the certificates due on the same
date. Funds obtained from the new
issues of certificates then will be-
come available for caring for other
debts