Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1926-04-07

oAAo ShO SOL6 CcSs Gu
operated with the President in bal
sncing the budget, by dismantling the
war machine and the enactment of
the national budget law, which had
been vetoed by President Wilson,
This assured the people against fur
Their extravaganza in pork-barrel
legislation.
The greatest immediate problem of
the Treasury was to release seven
billion commercial credit so that pro-
ductive industry could employ labor
including the five million unemployed.
by transferring the floating debt from
the banks to the investment public.
This done the next step was tosre-
fund in the same manner the enor-
nous victory notes. In very brief
period this genius of finance released
frozen credits to industry; business
at once revived: capital again invest
ed; labor was fully employed and the
bonds which had gone as low as sc
advanced to par and now are above
par.
Instead Of the Treasury being
called upon to meet obligations of
seven and one half billions due i'm
1928, they were all funded at such
convenient dates and in such amounts
that they could either be paid or re-
funded when due without the slight
est interruption of industry.
By the program of economy the
budget was not only balanced but the
debt has been annually reduced until
| 1t is now about 20 billion instead OF
1854 billion.
This enabled the country to reduce
| its staggering burdens of taxation
Our first bill reduced the peoples
taxes by $S35,000,000 each year OF
about two and one-third million per
day. Our second tax reduction bill
gave further reduction of $500, 000,-
600 and our third reduction bill saved
the taxpayers S367.000,000 more, or
the enormous total of over s1,50O.00O,-
900 or nearly five million savings per
| day. This achievement challenges
all records to show any such accom-
plishment in the history of govern
: ment financing.
Under a Protective Tariff
Congress cooperated with the ad-
| ministration head in a program OF
farm relief legislation recommended by
the Agricultural Commissions called
to Washington by the enactment of as
many as 16 separate bills lacking
toward this relief.
Congress also restored the Protec-
tive Tariff system which while we are
collecting an unparalleled amount of
custom duties, we have fostered and
can enjoy a foreign trade of over
eight and one-half billions of dollars,
with a trade balance in our favor of
we'll on to one billion dollars.
The administration has further
guarded against the dangers Of dis
criminate immigration by the adop-
tim nf f1,a ca1actir-n ;,, h.
terest not only Of American labor but
Of truer Americanism.
In our foreign relations the record
tells the story. The confusion grow
ing out of the World War called for a
high order of diplomatic ability. The
record Of more than 20 treaties almost
all of which have been ratified, cover
ing disputes with many countries
over Sundry issues, speaks for itself.
The work Of the Washington Arms
Conference assuring a limitation of
naval armament reducing the bur-
dens of taxation, lessening the
chances Of war. ending the rivalry on
the sea, and providing a scheme of
adjustment of disputes arising in the
Pacific are only part of the re-
suits.
The guarantee of Chinese integrity,
the open door in the Orient, the re-
turn of Shantung and composure be-
tween Japan and China are addition
al results which led European states
men to declare them to be the great
est for the peace of the world yet re-
corded.
Our part through the Taxes Com
mission in reconciling Britain and
France upon a policy with Germany
and our assistance in assuring eco
nomic recovery and stability again in
Europe speaks for itself.
Our part although unofficial in
opening the way for European lin
imitation in armies through the
Locarno Conference is quite we'll
understood.
Our recent decision to throw our
influence for adjustment Of disputes
by judicial process rather than by
war by our adherence to the World
Court under protective reservations
indicates our interest in World peace.
The Foreign Loans
Mr.. Chairman, one important for
eign question remains only partially
solved. the foreign loans. OF the
$12, 200,000,000. due us in 1862, nearly
one-half of it has been adjusted
including the largest debt, that of
Great Britain. To indicate the huge
transaction. England when she will
have paid her principal of $4,000
100000 and the interest Of per
cent the first ten years and 81 per-
cent the last so years, she will have
paid altogether over $1,000, 10000
Our debt Commission have agreed
and have reported to Congress set
Elements with six other countries
two TtoI b..
are accepted there only remains
France, Greece and Jugoslavia. We
shall insist on the adjustment upon
the basis OF ability to pay.
When the record of our Govern
ment financing and our foreign re-
lations adjustments is made UP it
will challenge all administrations of
all countries for an equal showing.
Other departments Of the Govern
ment have made enviable records,
but were not so closely identified
with the after-war problems.
The Contrast
We are now eight years from the
close of the war. The Republican
party has been in charge from March
4. 1921. The contrast between con-
ditions in 1921 and in 1925 Is striking.
Capital is fully invested and labor
fully and profitably employed. The
Federal Reserve Board in it's report
of this month shows from every
angle Of estimate a, remarkably pros
porous condition.
The railroads which are a good
barometer show the geatest haulage
Of freight and car loadings in the
history of transportation. Never
before has there been such volume
Of trade, such expedition in traffic,
safety in transit, such efficiency in
service, such economy in operation,
such splendid morale all down the
line and such courtesy to the public
as can be noted today. This is but
representative in industry today. This