The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-10-24
j, s. DEBT GIVES.
!. TREASURY
PUZZLE
Plan - Wipe $2o, ooo o 900
Obligation May Increase
Tax Burden
BY ROBERT s, TH0RNTBURGII,
International News seryice.

lmtermaEl0n0l News beevyees
The interoEied questions at rapid
reduction Of the pubic debt and
likewise the heavy tax burden Of
the American public has brought to
the White House and the United
States Treasury an important prob.
lem Of administration policy. #
Following the statement Of Charles
81. Dewey, Assistant Secretary Of
the Treasury, that the Treasury has
mapped out q program Of retire
ment Of the public debt in twenty.
five years, the question has been
raised whether or not the public
should be taxed. for this purpose
during the next quarter century.
when Great Britain, principal foreign
debtor. ID paying off It's obligation
to the United States IN practically
sixty years.
Further, some officials pointed out
that to other foreign debtors, in
GLIDING Great Britain, owing this
country approximately eleven bill
Hon dollars, will be extended the
same terms in funding operations.
they hold that the present genera
Ition will bear an upduly heavy Sur
den OF taxation, and that foreign
payments after the twenty.tivs,year
period will become q surplus income
to the Government.
Secretary Of the Treasury Mellon
Is not inclined to discuss the qucs-
ton Of whether it Ii just that the
present generation Of taxpayers
SHOULD assume q heavy tax that q
future generation may be exempt.
May Reduce Taxes.
It was understood, however, that
he regards Dewey's View of the
twenty.five-year program as an Eek
treme view" The Secretary let Il
be known that no especial pressure
Is being exerted toward quick re-
tirement Of the $40, 000, O0O, 900 pub.
lie debt. NSurpluses In annual Gov.
eminent financial operations might
be applied TO reduction Of taxes as
well as to cutting Of the public
debt, It was stated.
Another. question presents itself,
/. O., whether there would be any
advantage financially to the pres
emit generation in spreading the re.
tirement Of the public debt over
the sixty-year period allowed for.
eign creditors.
$1,000, OOO, 900 Interest.
The public debt in 1924 cost the
American public q round billion
dollars In interest. It was the
largest single item In the budget
ana comprised more than one.
fourth Of all Government expendi.
lures.
The success Of the twenty-five
year retirement plan is dependent
upon the maintenance of the popu-
lartty OF Government securities. &C.
cording to Dewey. He declared
that to carry 1t out the Govern,
ment ghDulds b able TO Sell its se-
curities bearing q low rate Of inter.
est and conduct It's vast refunding
operations under favorable circurl-
stances without undue disturbance
Of market conditions.
Bonus Bonds In 1915.
In reducing the public debt the
fact that In 1916 three billion dol.
lars worth Of bonds must be Is.
sued to finance the maturing sol.
diers' bonus policies. Under the
present plan most Of the public
debt will be wiped out by that
time. In 1947 the last of the first
Liberty loan issue OF 81 ISL 900. 900
is due to be paid off, leaving only
a small block OF Panama Canal
bonds maturing in 1851. and current
short-time securities, In addition to
the bonus bonds.
Should the entire foreign debt
have been funded by that time, as
now seems likely in view Of the
European situation and the attitude
of foreign debtors, the debt burden
viii have Still further been light.
ened, provided no great calamity
such as a war occurs n the mean.
time that would cause heavy issue
\ ~ hands Z