The West Virginian. [volume] (Fairmont, W. Va.) 1914-1974, 1915-01-29
Urges Cabinet Members To
Make Cuts, With Short.
age of sss,0OO,0OO.
INCOME TAX TOO SMALL
WAR TAX MEASURE EVEN FAILS
TO BRING SUFFICIENT REvE.
NUE. FOR GOVERNMENT.

1 n. ~ q p q 4
WASHINGTON Jan. 2s.-The seri.
BUSINESS Of the situation created BY
the growing deficit in the treasury
has moved the administration to &C.
ton and Secretary McAdoo met the
other members Of the cabinet in his
office and urged the necessity for
further cuts in the estimates Of ex.
penditures for the next fiscal year.
For some time Republicans have in.
sisted that the Democratic admins.
tration would have to throw over.
board many Of its proposed appro.
priations or face the necessity Of
further revenue producing legislation
or bond sale. Democratic treasury
officials have waved such sugges.
tons aside, but the conference at Mr..
McAdoo's office indicates that he re-
allies the necessity, for action.
The present deficit is Just about
S6S, 900. 000.s The deficit OF December.
~ was approximately $4,000, 600.
ISol le latter date all features Of the
el rgency war revenue tax went into
EJECT. This tax was imposed to off.
81 the fall In revenues from the Gus
toms service, but the way In which
the deficit has been mounting ever.
since the tax began to yield its re-
turns would indicate that revenues
fro mthis source are falling below
the amount estimated. This situation
is believed to have had som thing to
do with the conference. ~
Treasury deparement officials have
been relying non the income tax,
which is collected In June, to cover
the existing deficit and bring the fis.
cal year to an end without a serious
shortage. The fear is now beginning
to be expressed. however, that the
returns under the income tax this
year, both from CORPORATIONS and in.
diytduals, will fall very much below
the amount estiais 80.
Income AK RssuEGs Hit Hard.
The business depression and the
war conditions are bound to have a
decidedly adyerse effect upon the in:
come tax returns !.
Secretary McAdoo estimated the
revenues from the income tax for the
present fiscal year at $50 ,OD0,o 900.
The present deficit Of the treasury is
within about $40, 100000 Of that
amount and 81 the deficit should In.
crease In the next Eve months at the
rate that 1t has gone up In the last
two months 1t will, OF course, be IN
excess of the total estimated yield OF
the income tax. II, however, there Is
also. a falling off in the income tax re.
ceipts, as now seems bable, the
shortage will all be the ser. v
Democratic leaders In congress fear
that any 9tforts to pass further legis.
1ation OF this character on top of the
war revenue tax will be fatal blow
to the Democratic party, and every
thing possible will be done to avoid
this.
The war and navy departments
were the first to feel the demand OF
Secretary McAdoo. Both secretaries.
McAdoo and Garrison; however did
everything that they felt they could
do in the first instance to cut their.
estimates. Secretly Daniels in mar.
ticular was attacked because many
felt that he was not going far! enough.
and the house committee added about
100000 to his estimates. NO agree.
ment was reached at the conference
as to further reductions.
Another element that is entering
into the financial situation Is the fact
that the post office department seems
to be facing a large deficit, having
been hard hit by the war and bust.
ness depression 1t was act--s,:
lodged that the reduction I'm vo..
Of mail In the south In the last SIX.
months Of 1914 was tremendous and
that there also was a large falling OF
in the north. 80
The closing OF all stock exchanges,
in addition to the icurtailment Of the
foreign mail service, had "a good deal
to do with this First Assistant Post.
master General Roper said that pos.
tai receipts had been reduced in some
quarters as much as 1oper cent.
Big Economies In Post Offices.
Reports Of extraordinary steps by
the post office department toward eli.
fecting economies have been reaching
Washington from various cities re.
Gently, and these! are explained by TO.
days disclosures. = n,
Treasury officials deny that sum.
Giant data have haey, coJI act "A - = a.