The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1922-07-03
TREASURY FACING
LARGE DEFICIT
NEW YEAR OPENED SATURDAY
WITH A BUDGET DEFICIT ES.
TIMATED AS HIGH AS $485,-
OOO. .00O.-OLD YEAR ENDED
WITH FRIDAY.

Washington, July 1.-The gov
ernment balanced its budget for
the fiscal year 1922 ending today.
To achieve this result of the federal
financial operations for the year
was described by Under4Secretary
of the Treasury Gilbert as "no
mean accomplishment" but for the
fiscal year 1928 opening tomorrow
he declared the prospects "are not
good" with a budget deficit estl-
mated as high as $4S5.Oo0,O0O.
Final treasury reports for the
closing fiscal year will not be
available for a day or two but MI.
Gilbert, who has charge of the gov
ernment finances, declared that ex-
penditures for the year would be
less than $4,000, 100000 or $780,
100000 less than was estimated as
necessary by the spending depart
msnts at the outset Of the year and
that there would be a small sur
plus Of receipts. " "
tsThat this has been accomplish
ed" he said, "in the face OF the
unfavorsble prospects that con-.
fronted us at the beginning of the
wear is due to the unremitting ef-
forts of the government depart
ments and establishments under
the firm leadership of the President
to reduce current expenditures to
the utmost limits consistent with
proper administration.
AS to the coming year the under
secretary pointed to the possibility
of a deficit greater than already
estimated as, he contended appro-
priations for the next year have not
been passed by congress. However,
he maintained, the government
ssowes it to itself and the rest OF
the world to keep its finances clean
and balace its budget for 1928 as
in the three previous years, and the
only way to accomplish this is to
reduce expenditures already esti-
mated, and avoid new avenues OF
expenditure to such an extent as
may be necessary to wipe out the
indicated deficit.
Discussing the handling of the
public debt during 1922, Mr.. Gil
bert declared that with the ap-
proach of the end of the year the
total gross debt of the United
States was about S22,950, 1000, 600
a total reduction of over $780,
100000 since its peak on August
81, 1919.
This was accomplished, he ex-
planned, by the application of ST.
100000 balance in the general
fund made possible by lessened ex-
penditures and outstanding maturi-
ties; application of about $2,00O,-
100000 of repayments by foreign
governments; receipt of funds from
salvage and other assets remaining
over from the war aggregating a.
bout $1,40O, 100000 and the appli-
cation to debt retirement of about
$1,000, 100000 of surplus tax re-
ceipts during the fiscal years 1920,
1921, and 1922.
For the future, he asserted, iqui
dation Of the public debt will have
to he accomplished chiefly from
surplus revenue receipts, and par
ticularly through sinking fund and
other accounts as the treasury bal
ance has been reduced to as low as
consistent with proper conduct of
government business.
Enough has been accomplished,
Mr.. Gilbert states to assure sue
cess Of treasury's plans for refund
ing the s7,5OO,OOO,ooO short-dated
debt consisting of victory notes
maturing in May 1928. Treasury
certificates of indebtedness and
war saving certificates.