The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1921-03-12
SECRETARY
URGES ECONOMY
Mellon Issues First Statement
From Treasury

Washington, March S.--Sccrctary
Mcilon Of the Treasury in his first
official statement, made public to-
night in the form of Il letter TO bank
rrS, appealed TO tn" people gen
orally to stand ior rigid economy on
governmental expenditures and urged
the immediate establishment Of II
national budget system.
The new treasury secretary in h:S
letter discussed at length the ma
ional financial condition declaring
the showing made in TIL, last EIGHT
months had been 'particu,arly en-
cuuraging.' There are, however.
heavy drains 10 como on the trcasury
this month ana Mex he u, Il and thcs,
require the lioatatiCu o. more short
term certificates OF indebtedness an
nouncemcnt OF which he made coin
cidcnt with the letter ID tha bank
Irrs
The nation can not afford cxtrlV-
aSenCr,' Mr. Mellon asserted land
50 lar as possible it must avoid en-
ter!uS new fields OF expenditures.
Figures OH current operations OF the
government show that the cOunt.N'S
finances a:r sound but that the situ-
alton calls for the utmost economy.
The heavy requirements OF the
government on account " nccc ssary
expenditures inc.uGing interest and
sinking fund OF the public d"Lt and
the maturity OF %7,5Uo,0U0 in short
dates debts in tie next TWO vcars
make imperative that the greatest
care and economy bc exercised IN
matters affecting government cXpen-
diures.
The people generally must become
more interested IN SAVING the govern
mcnt'S moncT than in spending Il. \
thoruuGhgoinE national budget sys-
tenn must he established and the
governments expenses brought into
relation 10 its income"
The belief Was expressed hy the
new secretary. however, that Tie :r5t
nine mon; hs Of the tiSra! y,"r on 10
March 81 would show tn" trcn }ulN
mad made ends meet wish Il Sli,;Ht
surplus 10 ms" again, tne Ilt.lt War
dclt. Payments Oh the war Il d,ht
must necessarily be SON, he sad.
explaining that the heavy payments
lo'thc railroads would seriously ham
per previous plans II lower the debt.
The issues OF certificates annouuc-
ed viii! aggregate &lO0, 600, and
VIII lear interest at 1i2 per cent.
ha't having Il maturity date Of 0ne
year aHd the remainder for SIX
months. Both issues viii bo accept
ed in payment Of Income and profits
taTeS
In notifying the bankers Of the
is"r"s Mr.. Mellon said he felt Il his
duty to inform them ut the outset OF
hiu administration or the probable
requirements OF the government in
the coming months and TO say some
thing concerning is financial pro-
gram He said that $500, 900, 900 in
certificates must be paid off March
-, and additional $l1S.0V0,0 600 It
mOnta later Besidcs these needs,
there is to be paid the semi-annual
interest on Liberty bonus on March
-, payne Mt OF about $4,000 900.
The treasury also must make pay
ments TO the railroad duYing March
which Mr.. .I,llOn estimated at 500
000,G0o
TO partially Offset t." heavy outgo
the regular quarterly payment ot in
come and. profits taAcs is due March
10, from which the treasury hoped
20 realize approximately $500, O,000,0 900.
This tax payment, therefore, VIII be
used up in retiring the certificates
due on the same date. Funds oh
taiacl from the new issues Of certi-
iCa.t, then will become available for
caring for other debts.
Mr.. Nell also observed optimistic
'iGns in the general financial COndi-
tiOns throughout the country, not
Ing particularly that the cash guam
titles Of government securities were
widely spread ana II ut each new is-
8ue OF government paper Was being
taken more largely by investors.
GROWERS INCHENSE PROFITS
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