Imperial Valley press., 1926-12-08
MELLON REPORTS
NATION ENJOYING
GOOD CONDITIONS
Continued from Page y

/
/ American claims should be work a,l
out by this congress, Mellon cOntin-
ucd. The treasury plan for settling
the alien property question was Opt-
! lined as follows:
! THAT German nationals prop.
crty be returned to them.
! 2-That the United States be ad.
vanccd the money necessary to pay
the private American claims.
3-That the United States paw for
the ships, radio stations and patents
| taken from German Nationals and
used by the United States.
! THAT the treasury be authoriz.
cd to borrow the money necessary to
make these payments and all receipts
/ from Germany under the Dawes plan
to pay interest and principal of the
public debt, thus rcimbursing the
treasury.
Government Receipts
"Thc increased receipts from tax.
alton have more than offset the re-
duction in miscellaneous receipts
and the total ordinary receipts for
the fiscal year 1926 were $685., TOO
| 600, an advance of $1S2,6O6. .OO6, as
compared with 1925 the report
said.
Mellon pointed out that imports
reached new record for the year
and customs receipts totallcd $j79,-
100000. Miscellaneous internal
revenue receipts also were higher.
Government Expenditures
Increased government cxpcndi-
lures were attributed by the secrc-
tary to rising level of general
prices, the increasing population
the increasing cost of armamcnts
and accumulation of expenses at
tributed to past wars; the expand
ing sphere of governmental activity
required by the increasing conges-
ton of population and made possible
by augmented national wealth and
the rising standards in governmen
tai activities and efficiency. Il nee
essary concOmitant to rising gen
eral standard of living in a progress
sive country.'
The ordinary expenditures Of the
government last year were $3.JS4,-
9S7,S73. Mellon said civil expendi-
lures have alrcdv been so reduced
that "the limit has been reached. -
He pointed out the only reasonable
prospect of their future is q gradual
increase corresponding with the
growth of the country.
The Public Debt
During the year the public debt
was reduced from $20,5l6, 1913, 1897 90
to $19,643, 216,315.19. This was ac-
complished by applying the entire
surplus of more than $377,000.000,
more than $4S7, 100000 from ordi-
nary receipts and 1888 900 Of the
treasury general fund. to debt retire
ment.
Foreign Debts
America at all times has strongly
been against cancellation of foreign
war debts. he said. Foreign obliga.
tions originally held by the treasury
totalled s1O.33s, ,O5s, ,353.oO. Funding
agreements have been made with
Esthonia. Finland. Great Britain,
Hungary, Luthuania, Poland, Rou-
mania, Belgium. France, Italy. Lat
via, Jugo- -Slavia and CzechoSlo
vakia that amount to more than
$ll .522 100000.
Negotiations for settling the
Greek war debt are still pending. All
other work of the American debt
commission has been concluded, Mel
lon told congress.
Prohibition
cit long has been realized that
the national prohibition law will be
successfully enforced only when the
law and its enforcement shall have
met with general approval,' Mel
Ion said.
1.-The underlying thought, there
fore in instructions issued to the
field forces and in the formulation
of all regulations is that the law
must be so administered as to win
popular approval.
"The field forces are held to the
strictest personal observance of the
prohibition law and are enjoined to
use only legal methods in their un-
dertakings.
States and communities are plac-
ing too much responsibility of local
law enforcement on the government,
he continued.
"The principal duty which the
federal government should assume is
the prevention of commercialized
traffic in liquor he aid. cit is the
function of the federal government
to eliminate sources of supply for Ii
quor traffic; to prevent the manu-
facture, transportation and importa-
tion and sale in commercial quaint
ties of Intoxicating beverages.
''It should be the duty of the
federal forces to point out to state,
county and municipal Officers the
necessity for the prompt reassump-
ton of the responsibilities of self
government as well as the urgent
need for prompt local enforcement
of the law
Mellon said the nations drv army
had been successful in its attack on
smuggling and that the liquor traf-
fic is already feeling the effect of
the government S efforts to eimi-
nate the diversion of alcohol for
beverage uses.
The main prohibition problem now
is "moonshining,' Mellon explain
ed.
"This must be handled by local
officers to aid in the final stage of