New-York tribune., 1922-09-25
Deficit Cut Is
u. S. Aim, Says
reas,lry Man
Revenue From Securities
and Lower Expenditures,
Not Added Taxes. Is Plan
$. P. Gilbert, Jr., Writes
Model to European States
Best Hope for Restoration
of Business Lies i'm
Sound National Financing

From The Tri6nnc's Washington Bureau
WASHINGTON, Sept. 24.--1t would
be national calamity to impose
additional taxes upon the American
people to meet the estimated govern
ment deficit of s672,00o,Oo0 for the
current fiscal year, according to s. P.
Gilbert jr., Under Secretary of the
Treasury, writing in the October
number Of "The Nations Business" on
the subject of the nations finances.
And yet" says Mr.. Gilbert, "if there
Is persistence in any program Of ex-
penditure beyond the limits of the
governments income there would be no
other course open than the introduc-
tion OF new taxes to restore the bal
ance.
ITO reduce the deficit, and if possible
to eliminate it by the end of the year"
Mr.. Gilbert points out, "s the end to-
ward which the whole Administration
is striving, and the best hope of ac-
complishing it will be through in
creased revenues from realization on
securities and surplus property, and
tions in expenditure.
This country came through the war
with gross public debt at the high
point, on August 81, 1919, of $685.
100000, an increase of over twenty-five
billion dollars during the war period.
On August 81, 1922, the total gross
debt stood at $23,042, 900, 900, reduc-
tion since the peak Of about 1854,
100000. The greater part of this re-
duction has been accomplished through
% the reduction in the balance in the
general fund of the Treasury, (2) the
operation of the sinking fund and other
debt retirements chargeable to ordinary
receipts, and (3b the application to
debt retirement of receipts from sal
wage and other liquidation of war as
sets and, to much smaller extent,
through the use of ordinary revenues.
From now on the liquidation of the
debt will have. to be accomplished
largely from surplus revenue receipts,
through the operation of the sinking
fund and other similar accounts.
"The sinking fund and other similar
accounts must be relied on, however,
to accomplish most of the debt retire
ment in the years to come, and the
Treasury has already established the
proposition, in the first budget sub
mitted to Congress by the President
in the fall Of 1921, that expenditures
on these accounts must be made out of
ordinary receipts and be included in
the ordinary budget on that basis.
This means that provision has to be
made for these items of expenditure
before the budget can balance, and a
balanced budget each year thus means
a reasonable amount of debt retire
ment out of current revenues.
Governments Policy Conservative
at has been the constant effort of
this government, on the other hand, to
keep it's own house in order, to main
tain the gold standard unmpaired and
unrestricted, to finance the war on
sound lines through taxation and
through the absorption of government
obligations out of savings, and after
the cessation of hostilities to balance
it's budget, current expenses against
current income, and, at the same time,
to carry out reas enable program for
the gradual liquidation and orderly
funding of the war debt. a