Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-01-26
OUTLOOK FOR 1924
. RETRENCHMENT
SAYS SEC. MELLON

ciaD--lf the prosperity which the
cauntry as a whole is enjoying today
is to continue through the year 1924,
a program of economy must rule both
private and governmental expendt-
lures is the statement made by
Andrew w. Mellon, secretary Of the
Treasury. .:..
I believe in saving. and 1t Is my
conviction that saving nation Will
be prosperous nation; that
thrifty people will be a successful
people. 1t is, therefore, the RESPONSE
bility of each OF us to help main
tain good times and bring the great
est benefit to the greatest number
during the coming year.
We must face the fact that while
the people acquired habits during
the war which can only be described
as extravaganza, and INDUCED in
alarming and unprecedented spend
ing, the salvation of our commercial
and industrial integrity today de-
Ponds principally on the elimination
of unnecessary expenditures.
How U. s. May Prosper
However distressing conditions are
in other parts of the world, the
United States is back on its feet,
and the money madness of wartime
10 over. There is but one way for
this nation to prosper and that is
for 1t to pay its debts, eliminate
needless expenses, and to add to Its
surplus in money and resources.
The greatest and richest of gov
ernments must shape its policies in
this fashion; SO must the humblest
citizen. This Is the responsibility OF
the future and II is the responsibility
of the individual as well as OF the
government.
Habits once formed are hard to
break. Those of us who have ac-
quired the habit of reckless spend
ing must realize that the present
principles laid down by Benjamin
Franklin. We as citizens and as Of
ficials Of municipal, state and ma
tiona1 governments must determine
on a course of security. of thrift, of
saving, of careful and scientific
management in all financial matters.
We must decide now that the only
sensible and logical way to progress
and maintain national and indi-
vidua1 prosperity Is to live within our
incomes, and save a part of our
earnings.
The lead has been taken by the
government of the United States.
The administration is doing every
thing possible TO achieve constantly
greater economies and added eff
cheney in every branch OF it's service.
As has recently been pointed out to
Congress, revenues exceeded ex-
penditures by $309, 400 at the end
Of the fiscal year 1923. and the in
dicated surplus for the fiscal year
1924 is estimated at about 1929, 000,-
600. In thus managing the public
finances there has been a reduction
in the public debt of $813,674.343
during the fiscal year. 1928 to S22,-
349, 707 goo, as OF June 80, 1923.
Public Debt Reduced
This compares with a debt OF
$24.299. 1921 900 on June 30. 1920. On
October 81, 1928. the public debt was
further reduced to S22,0S2, 209. 900,
which Ia encouraging and should
stimulate the heads OF government
departments, as well as business
men throughout the country, to
further acts of wise economy.
With further tax reductions, be-
1ieve that business during the year
1924 will be greatly improved. How
ever, we must beware of new and
unusual activities and must con-
tinue to practice. rigid economies.
There are groups of individuals
throughout. the country who have
complained OF the lack Of purchasing
power. Among these are the farmers
az class. and while they have been
below workers in other industries in
this regard, all signs indicate that
agriculture is regaining its dominant
position. The farmers must UNDER
stand. however, that systematized
production and expenditures will go
a long way toward reestabIishing
them on a sound financial basis.
Manufacturers, too, while they
thoroughly understand that the de-
mands Of capital and labor for high
or returns have added materially to
the costa of all manufactured prod
ucts. should keep In mind that ad-
ditionaf efiiciencies in buying, I'm pro-
duction and in selling. are possible
and must be introduced. As to the
future il everyone Will adopt a conn.,
mon sense. program the prosperity
OF the United States will take care
The government has adopted a
program Of .retrenchment. and with
the further reductions planned for
the coming year the nations financial
outlook Is most encouraging. In
order that we may derive the great
es, benefit. from national. economies,
individuals must shape their own
expenditures, to meet their incomes,
and leave an amount above and be-
yond all expenses which can be set
aside for investment. If our people
VIII do this financial security and
personal happiness will be maintain
ed not only in 1924, but for years to