The New York herald., 1920-12-06

&c. ........................ 1.000, ,000. 900
Big Task for the Treasury.
Business depression may materially
reduce the actual receipts from the ex-
cess profits tax from the estimate. which
Is unoficiaf. and revenues from excise,
luxury and other similar taxes are GER
tain to be reduced by falling prices and
shrinkage in the volume Of sales. Such
reductions will cut deeply into the mar
gin OF excess of receipts over disburse-
ments. which has been estimated at
$1.123.684,863.
This surplus and more Is needed to re-
tire the present floating debt and for
sinking fund operations to take care OF
Liberty bonds and Victory notes. Con-
sequently the end Of the current fiscal
year will find the Treasury with but
moderate cash balance, large item OF
floating debt, to which the taxes OF the
ensuing year will be pledged in part and
with the necessity OF definite provision
to meet years ordinary expenses, pay
the interest on the public debt, retire
the outstanding certificates of indebted
ness and provide sinking fund to meet
the oncoming maturity of Victory notes.
Therefore. during the short session of
the Congress which opens tomorrow the
Government Is confronted with a situa-
tance If the operations OF the fiscal year
1922 are to leave the Treasury in bet
ter financial position and with definite
provision for liquidation Of all floating
debt and consistent retirement of the
funded debt.
Appropriations for the fiscal year 1922
probably win very nearly approximate
those of the current fiscal year. There
will be marked reduction in army and
l<tx~ 9th l.
lures incident to the normal peace time
operations of the Government continue
to soar.
Big Cut In Appropriations.
Representative James w. Wood Ia
chairman of the Appropriations Com
mittee of the House. Is optimistic. how
ever that the Treasury estimates can
be trimmed drastically. He is hopeful
that the total appropriations will be up
wards of billion dollars less than
those Of the current year. The COM
mittee has been at work for three weeks
holding hearings on the regular appro-
priation bills. and striving TO put into
immediate effect the Republican policy
of rigid economy In every department.
Chairman Good last night estimated
the total regular appropriations for the
next fiscal year at $3.50. 0.000,0 600. which.
he said, would include approximately
$1,000. 600. 900 for interest on the public
debt, and 100000 for sinking fund
purposes. This estimate. however, will
be augmented by various deficiency bills
which are made necessary by supple
mentary estimates submitted by the diff
ferent departments.
Tax collections on the basis OF the
revenue act Of 1918 are most certain to
shrink. Therefore the desirability IL not
the possibility Of working out some new
budgetary arrangement is apparent If
some Of the necessary activities OF the
Government are not to be abandoned
during the next fiscal year.
An example Is the enforcement OF the
volstead prohibition law. Appropriations
for this purpose for the current year
aggregate s4,500,000. A major portion
of this already has been expended. with
seven more months to go. Prohibition
officers and Treasury officials declare the
existing enforcement organization made
uuate They say that enforcement VIII
not be effective without greatly IN
creased personnel among the field oper-
ators. which means a vast increase in
the appropriation for this activity alone.
The sum needed for the next fiscal year
has been unofficlally estimated Mt $780,
100000.
To-Dlorrotc,s article iciH deal ictth
proposals of a gross sales tar, noic be-
fore Congress, as substitute for the
cTcess profits tar.