The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-01-28
Incom. Tax Return. hit Hard.

The business depression and the war
cundtions are bound TO have a decidedly
adverse effect upon the income tax re-
turns.
Secretary McAdoo estimated the rev.
enues from the income tax for the pres
ent fiscal year at Ss0O0V,O0O. The pres
ent deficit OF the Treasury is within about
tO,OOO,OOO or that amount, and IL the
deficit should increase In the next I've
months at the rate that it has gone up in
the last two months IL Will, of course,
be In excess OF the total estimated yield
OF the income tax. II. however, there Is
also a falling OF in the income tax re-
ceipts, "a now seems probable, the short
age viii be all the larger.
Democratic leaders in Congress fear
that any effort to pass further legislation
Of this character on top of the war rev
cnue tax will be fatal blow to the
Democratic party, and everything pos
sl0le will be done to avoid this.
The War and the Navy DEPARTING nts
were the frs to feel the demand OF Sec
rotary McAdoo. Both Secretaries Nc
Aduo and Garrison. however. did everv-
thing that they felt they could do in the
first instance to cut their estimates. Seq
rotary Daniels in particular was at
tackled because many felt that he was
not going far enough. and the House COM
mittee added about 81 ,0OO, 900 to his est.
mates No agreement was reached at To-
days conference as to further reductions.
Another element that is entering into
the financial situation is the fact that the
Post office Department seems 10 be facing
q large deficit, having been hard hit by
the war and business depression. 1t was
Acknowledged that the reduction in vol
ume Of mail In the South in the last six
months OF 1914 was tremendous and that
there also was a large failing of in the
North.
The closing Of all stock exchanges in
addition to the curtailmeut of the foreign
mail service, mad a good deal to do with
this. First Assistant postmaster-GeneraI
Roper told a SUN man to-day that postal
receipts had been reduced in some quar-
tiers as much as 10 per cent
Mig Economics In Post Omccs.
Reports OF extraordinary steps by tn,
Post office Department toward effectins
economies have been reaching Washington
Eom various cities recently. and these ar,
explained BY tu-day's disclosures.
Treasury officials deny that Sufficient
data have been collected yet TO chow thai
the war tax measure has failed TO yielt
It's estimated revenues. The total inter
nal revenue collections this month to dat,
arc only 100000 in excess OF the col
lections for the corresponding month las
year The estimated returns from th'
war tax for the past seven months OF th'
fiscal year were S5i,OOO,OOO OF more thar
$500, 900 month.
The fact that the excess in receipts Il
only about S4,OOO,OO0 over that OF las
January, when there was no war tax, woul,
indicate that this tax Is not yielding wha
was expected or else the ordinary interna
revenue receipts are falling off owing 4
the general depression.
The Democratic estimates for the mex
fiscal year now amount to more than 81.
10000 600 or 26,0OO. 900 IN cNcess OF tn
amount called for at the beginning OF tn
last session OF Congress. The belief II
Washington is thai the public building
bill carrying S25,OO0,O0O and the rive
and harbor bill carrying S34,OOo,OOO. tn
pork measures, will have 10 he throw
over or materially reduced II the Demo
cratic Administration Is to avoid financial
difficulties or further revenue Legislation
A further biz decrease viii have to b
provided against when sugar goes on tn
free list on May !, 1916.