Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1920-01-12
TAXES CHIEFLY
BLAMED FOR
HIGHER PRICES
Five Years Bring Astonishing
Increase in Costs to
Government.
ALL SCALES ARE UP
BY HARRY B. HUNT.
Staff Correspondent of the Newspaper
Enterprise Association.

Enterprise Association.
WASHINGTON, Jan. 1.-THE increase
in the cost of living. proportionately,
hasn't hit the individual half as hard
as the increase in the cost of govern
ment.
The bureau Of labor statistics shows
the index figure for the cost Of living
as 1873 compared to costs in 1914 and
'15. II an index figure was established
for the cost Of government, on the same
basis, it would stand somewhere around
400 The result is that the increase in
cost of living is, to a very appreciable
extent, the result of the increased cost
of government and its consequent high
taxes.
The cost of Uncle Sans government
to each Of his citizens, men, women and
children, in 1890, was approximately 81,
and his total government expenditures,
exclusive Of the postoI service, $685.
$4,000
BY 1900 the per capita cost had moved
up to about Sc, covering the costs of the
Spanish-American war and the "extrava-
giant" expenditures incident to the ''im-
perialistic" policy that kept us in the
Philippines and in Cuba. Appropriations
for 1900 amounted to 1886, $4,000.
For 1920 congress appropriated n to
tai Of s793, 1874 coo, or about $40 pei
capita, and. by 1918 this had increased
TO slightly more than IS per capita.
TOUR AND a HALF BILLION
APPROPRIATIONS ASKED.
Estimates presented to the present con
gress, however, for the year from June
80, 1920, to June 80, 1921 call for ap-
preparations Of SAITH COG, 1882, or, on q
basis of population Of 100000 just
$1,000 per capital Where has the cost
of living anything ON that?
TO be conservative, however, let US
figure next years governmental expend-
lures on the basis Of estimated ex-
Penditures compiled by the experts of
the treasury department These esti-
mate the governments cash outlay for
the fiscal year 1921 at S.. 973, 7S7 ,9S5-or
$50 per capita. That is believed to be
the irreducible minimum!
Into this cost goes approximately
$1,000, 100000 in fixed charges resulting
from the war.
Interest on the public debt will
amount to 81 or, 800 600. Sinking fund
charges take S287, 100000. In all, the to-
tai fixed charges to be met by the gov
eminent in 1921 stands at $1,343,953O0O
before any appropriations are made for
current government activities.
OF this amount 1876, 574, 875.62 is inter
est on loans to foreign governments,
the greater part of which interest has
been waived by this government for the
next three years, but accumulates as a
credit to our account against the time of
ultimate settlement.
GROSS PUBLIC DEBT
EXCEEDS 2e BILLION.
The nations gross public debt amounts
to S26, PIC, $50, 269, of which amount S24,-
92S, 561 900 has been added since April 6,
1917, when we entered the world war.
Loans to the allies and other European
countries represent about 40 per cent.
The mere physical job administering
Uncle Sans money chest as a result Of
our bond issues and war taxes, is ex-
: as against $19.810,9 9288 for the current
year, and the total expenses Of the
treasury department to aggregate $751;
405, 101.36, as against $50, ,012.S8.
A fat sum of $21, 0OO,O0O is asked to
cover costs Of collecting war revenue
taxes. For enforcing the new national
prohibition law, including allowances
for chemists to test suspicious bever-
ages, laboratory supplies for their work
and liquor sleuths to ferret out law
breakers, 100000 is to be provided.
Including administrative costs, the rev
enue bureau alone expects to need next
year no less than $40, 26S 600, as against
SOS, 900 for the current year. Part
OF this money, however, would be paid
directly back to taxpayers in the form OF
refunds amounting to $12,0O0,OO0 OF
taxes Illegally collected in previous
years.
Paper costs, too, affect Uncle Sans
expenses, the mere blank forms and sta
tionery needed for next years work
amounting to S214,40O, as against 100000
for 1920.
NATIONS INCOME FOR
NEXT YEAR, FIVE BILLION.
Uncle Sans total estimated income fo1
the year ending June so, 1921, is placed
by treasury experts at S5,620, 800 900. and
his probable expenses at So, 973, 1877 985
leaving a balance of $1,884, 0O2,O15.
Ofsetttng this, however. is an indicated
deficit for the current year Of $3,905,
sSS,543. Even if revenue amounted to the
So, $40, 100000 estimated-which many
fiscal authorities now doubt-June 80
1921, then, promises to find the treasury
still with a deficit, after providing fol
the sinking fund, not figured above, o.
1859 ,336, 528 if our present program Of
appropriations and expenditures is car.
ried out.
Included in the estimates for 1921
however, are largely increased estimate:
for the military establishment which the
American people will, doubtless, wisl
to study closely. Just why our army