New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-12
Mellon Sounds
Economy Call
To Meet Tax Cut:
Warns Administration and
Congress Proposed $780,
100000 Bureau Reduc-
lions Require Rigid Saving
Assailed by Democrats
Byrnes in House Debate
Charges New Levy Plan Is
Merely a ''Smoke Screen"

WASHINGTON, Aug. 11.-Both the
Administration and Congress were
warned to-day by Secretary Mellon that
the $3.50, 900, 600 reduction in estimated
departmental expenditures agreed upon
at the White House conference last
Tuesday part of the whole tax re-
vision program could be accomplished
only by the exercise of the most rigid
snonomy.
ITO accomplish this reduction" Mr..
Mellon declared in a letter to Chair
man Fordney of the House Ways and
Means Committee, at will be neces-
sary for the Administration, with the
assistance of the Director of the Blu
reau Of the Budget, to put forth its
utmost efforts to insure economy in
every government activity, and for
Congress on its part to give the most
who le-hearted cooperation, not only by
avoidance of new expenditures, but also
by the limitation or repeal of various
outstanding balances and AUTHORIZE
lions.
Pleads for United Effort
81 cannot too strongly emphasize
that the program agreed upon and out
lined in this letter depends upon the
reductions in expenditure which the
Administration expects to accomplish,
and that the anticipated savings can
be effected only by the most consistent
and determined efforts to cut ex-
penditure. The estimate of receipts,
on the other hand, represents the ut
most expected to accrue during the
year. particularly in view of the uncer-
tainties resulting from the depression
IN business and the shrinkage in in
comes and profits"
The tax question got into House
debate today, Democratic leaders at
lacking the program with charges that
only the wealth. would benefit by most
of the proposed changes in the revenue
law and tina: the curtailment in de-
partmental expenditures for this fiscal
year agreed upon at the White House
conference would prove merely paper
savings"
Republican leaders replied with the
declaration that the new law would lift
S00O,0Oo,O00 off the people yearly and
launched counter attack against the
Democrats for leaving over to this Ad-
ministration what were described as
unnecessary burdens growing out of
the wsr, including payments to the
! railroads.
Calls 1t Smoke Screen
Representative Byrnes, of South
una, democratic member of the
/ appropriations Committee, in opening
/ the debate, said that Representative
Mopdell, Of Wyoming. the Republican
leader, in his claim of savings had
made Director of the Budget Dawes "a
( plkeT in the economy game lie added
that the Republicans pretended econ
olny was only "smoke screen" to de-
ceive the people and they knew that
as the end of the fiscal year approached
they would have to borrow money to
meet expenditures.
Chairman Fordney, in a vigorous re-
ply, said the Democrats had fooled tn
people for eight years until finally
turned out of office, and that the Re-
publicans were going to fool them by
cutting off s6Oo,Oo0,0OO Of their taxes
Majority members of the Ways and
Means Committee considering the tax
bill held only one session to-day. This
was devoted largely to a discussion OF
changes in administrative features OF
the existing law