Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1921-09-03

Washington. Sept. secretary
Mellon Of the Treasury. will go be-
fore the Senate Finance Committee,
considering the Tax Revision bill late
~ passed. by the House. next Thurs
day to give MS views as TO the in
ternal revenue policy Of the country
for the current fiscal year and those
Immediately following.
His visit to the committee is await
ed with keen interest since members
Of the committee have indicated that
they will be guided largely by the
Secretary's views as to the amount of
internal revenue necessary for the
Government in this fiscal year. Some
Of the members also have intimated
that the Secretary's views as to
sources of revenue will have great
weight.
The Ways and Means Committee,
in framing the Tax Revision bill,
threw nearly all Of Secretary Mel
l.r's recommendation into the dis
card. Mr.. Mellon asked for So $780,
100000 this year from internal rev.
enue. That meant additional taxes,
as the existing laws would yield it
IS estimated 50 570,0G0,O00. The
Ways and Means Committee insisted
not only that there should be no new
taxes brit that existing taxes should
be reduced. Subsequently, after the
President mad sided with the COM
mittce ;,ad had promised large re-
duct:ons in expenditures. Secretary
Mellon gave the Ways and Means
Committee al estimate that 81 0G0.-
900 in interna! revenue was NEEDED in
the 1922 calendar year-mairt!y from
this years business.
The question now being asked is
whether the Secretary. in stating his
views to the Finance Committee, Will
:tand on the last statement given the
Ways and Means COMMITTEES Or VII!
submit qrothcr estimate. The best
information is that the Secretary him
self has not yet decided and will not
Until early next week.
Fresh studies will be made by the
Treasury Department Of expenditures
II is expected for the benefit Of the
Secretary in forming his opinion.
,Gr. Mellon probably will want to
i. .ow whether all Of the talk lately
ubout economics has had any practl-
cal effect. There has been such talk
ever since the Harding Admin!stra:
tion CAME in, but in one of his first
communications to the Ways and
Means Committee, Secretary Mellon
stated that in July the first month of
the current fiscal year. the ordinary
expenditures were SIS 900 900 greater
than in July. 1920 and that, due to
the decrease in revenue. the cet!clt
for July was S37 100000 more than
the deficit for july, 1920.
In the new studies to be made by
the Secretary, he probably will de-
termine TOO. whether to advise the
Finance Committee to make effective
as of January | .ast the repeal OF
excess profits taxes and the clinl!na-
ton of al! surtaxes on individual in
comes above 50 per cent. That was
his advice to the Ways and Means
Committee. and It was one Of the
very few instances in which the COM
mittee agreed with his Judgment.
But the conference of Republican
members of the House, when they,
met in conference on the bill changed
the date to January l next.
There is 20 doubt that Mr.. Mellon
believes that the change should be
made as II January / last, but no as
s.rance hes ccme from the Treasury
that he vii! ask the Finance Commit
tee to change the Houses work, al
though = : likely that many of the
Republican members of thu Finance
Committee could be giad to fave
him re 'om,rend January last.
Pending Mr. MELONS appearance
the F';r.l::e committee will Garote
Itself or ..inal.v 10 stli; Of tn: de-
tails OF the bill framed by the Repub-
licans OF the House side.