El Paso herald. (El Paso, Tex.) 1901-1931, 1920-12-08

An additional tax Of percent on
musical instruments to yield Sl3,-
000, 600.
An additional tax Of 5 percent on
motion picture films 10 yield 81
100000.
In the readjustment OF surfaces. Mr..
Houston proposes the division Of in
comes into saved" or reinVested and
spent" on the former class he
would limit the highest tax to 20
percent, while the income spent would
be subjected TO a tax ranging as high
as so percent Under the plan pro-
posed .by the secretary. incomes be-
tween $4,000 and $4,000 would be taxed
. percent on the part saved and the
same on the part spent The same
ratio with a graduated increase would
apply 10 incomes up TO $4,000. where
the maximum of 20 percent on saved
income is reached
To Cut soda Tax.
The repeal OF the tax on soda foun-
tain and other beverages is asked,
the secretary says, because the col
lection Of the tax the aggregate Of
which is small. has presented an adj
ministrative problem Of magnitude.
Added to that, Mr- Houston says,
there has been constant and wide
spread evasion Of such taxes.
The excess profits tax, M Houston
declares, has not fulfilled the theo-
retical grounds upon which IL was
enacted and has been found TO be
wrong both in theory and in political
philosophy He says IL Disseminated
against the conservatively financed
corporation while aiding materially
the firms whose capitalization is eX-
aggerated- He urges that it be re-
placed by some form Of a corporation
profits tax not only on the grounds
OF the governments revenue needs.
but upon grounds Of equality and
justice The corporation profits. the
secretary continues. should not be al
lowed TO escape with a tax Of 10 per-
cent while other taxpayers are sub
jected TO taxes on their incomes rang
ing as high as 20 percent
says Cut Expenses.
Mr.. Houston again urges the neces- [
sity for rigid economy in government
expenditure. asserting that only by
conserving the finances carefully can
the expenditures be kept within the /
S 4.OOO,0O0.o00 annually which he sug~ I
gests should be the basis Tor a reve- /
cue program.
An analysis Of the government ex- /
penditures for the last fiscal year de- I
velops the fact that almost 0ne-fifth 4
Of the S6,f00,000,000 paid out was /
spent in connection with federal con- {
troll and the guaranty OF earnings for 1
the railroads Only one department I
1f the Ecvernment-the war depart 4
meEt-spent more than was used IN
connection with the carriers The
war departments total, the record
shows. was s1,611. 600, 900 against
i1,05E000.000 for the railroads
Retiring the War Debt.
Discussing the war debt. and a pro-
gram for its retirement, Nr. Houston
'ays that within the next 80 months
he government will have 20 pay off
S1s5eo 100000 in Vic
DRY notes, War Savings certificates
nd treasury certificates Of indebted
less. He proposed that the treasury
certificates not be funded further;
hat they be retired as rapidly as the
reaEurV's conditions permit SO the
FOR redeemtng other govern
lent OBLIGATIONS viii not be ham
cred by Simultaneous payments.
Wants to Get Rid Of Departments.
Lessons Of the world war Mr.
I0ustOn says, have shown the need
OF the transfer Of some Of the treas
i've bureaus-War risk insurance
public health service, su-
ervising architect and the general
uppIy committee-are in no way re- {
lted 10 the fiscal operation OF the I
oTernmeut- he says, and urges that
hey be placed under other 5urisdic- {
Jon The request, he adds, is IN
sual for few If any other executive
apartment heads have been willing
o see their departments dismem-
cred his own request he says, de-
lahds the more attention Tor this
eason-
In connection with this suggested
organization. the secretary asks
hat the position OF under secretary
Z the treasury be created al a salary
Z $4,000. He recommends also an
lcrease in the salaries OF the assist
ut secretaries from $4,000 TO $500. Z
Loans to Europe.
Reviewing the loans TO foreign =
overnmeuts, Mr.. Houston says the ]
merican government advanced in {
ash between April "A, 1917. and No J
ember IS. 1920. a total Of 1885, I
25677. OF this amount, approx 7
.ately $4,000, GOO has been advanced !
.nce November 10, 1913. under credits
reTiously established TO five foreign
governments. OF this France re-
aived S119.0O0.000. Italy. S20.41e,00O; Z
reece. $4,000. 900; Belgium So, .
Sc GOO, and Czecho-SloTakia, $685. ]
The treasury has vet reached no {
termination as TO the form which I
be obligations OF the foreign govern Z
tents will take, Mr. Houston says, Z
ut he recommends they be allowed to ! I
Ztend until June. 1917, al which they / {
lust be paid under existing law. (
-odak Finishing. See Gandara--Adv /