The New York herald., 1921-07-18
five BILLION A YEAR
FOR LUXURIES IN us.
Theatres Get Close to a Bill
ion; Soft Drinks Cost
S5O0,OOO,0OO.
dsllA AAA AAn al0D GEMN
S22O,OOO,OOO FOR GEMS
Perfumes, Cosmetics, Toilet
Soaps S7O,OOO,OOO, With
Clubs $50,000,000.
THRIFT EXPERTS R0UsED
Plan to Halt Expenditure of
$13, ZOO, 900 Daily for Non
essential Items. !.
Special Despatch to THE NEW York HERALD
New York Herald Bureau,
Washington, ID, C., July II.

speciol DESPATCH to THE NEW York HERALD
New York Herald Bureau,
Washington, ID, C.. July IL. }
Approximately $4,000, 900, 900 is be-
Ing spent in New York and other
big cities of the country each year In
a national rush to obtain amusement
and luxuries. returns to the Treasury
Department under luxury and kindred
tax items show.
More than s50o.o00,00o was paid into
the Treasury during the fiscal year
Just ended in taxes on expenditures
listed In the luxury tax laws.
The tax list includes about fifteen
items which can be classed more or
less as luxury or non-essential ex-
penditures. In most cases the tax is
10 per cent. of the amount disbursed
by the seeker for amusement or lux
ury. The tax list of course does not
include all luxuries nor all amuse-
ments. Some are not taxed and for
these there is no return on which 20
estimate the national expenditure.
The disbursement of s5.000.00o.ooo a
wear for luxuries and amusements there
fore is a minimum estimate Of the ma
tionaI expenditure. This sum. however.
IS regarded by many Government Off
cials as too vast for the purpose. con-
sidering the economic depression and
unemployment throughout the country.
The thrift division of the Treasury De-
partment is working to discourage the
rush to buy foibles.
Closing Family Pocketbook.
Under the thrift divisions direction
the Government, through It's innumerable
departments and agencies scattered
throughout the United States. is en-
xaging in nationwide propaganda to
encourage the conservation of the re-
sources of the family pocketbook An
extensive poster advertising campaign is
being staged TO encourage the purchase
OF thrift stamps and the later redemp-
ton of these miniature Government
bonds for war savings stamps which
cost just under SIS. Millions of placards
calling attention to the issues of the
stamps are being distributed In post
offices. Government buildings. railroad
stations and all sorts OF. public places.
The thrift division Is working directly
tion of cash by getting in touch with
clubs. neighborhood building and i'm
provement associations, ,womens So
cieties. grade schools and Sunday schools
IN an effort to reduce national extrava-
eance. This campaign is meeting with
Some success. II seems. since thousands
Of letters are flooding the thrift division
officials from persons and organizations
IN all parts of the country.
Despite the activities of the Govern
ment toward thrift expenditures in ex-
cess Of s13.700.000 are being made daily
IN the centres OF population of the coun-
try for articles which mainly are in
ciuded In the lists OF the luxury tax laws.
And the Government Is convinced that
II is receiving only a fraction OF the tax
collectors from dealers. This indicates,
officials say, that the expenditure is far
greater than the tax returns actually
show.
Commissioner Blair OF the Internal
Revenue Bureau now TX staging a ma
tional campaign to discover dealers who
fail TO turn in the full amount OF pennies
collected as luxury taxes. Flying squad
rons OF tax sleuths are at work in New
York and a score Of other big cities in
specting the books and tax return prac-
tices of movie theatres. vendors OF soft
drinks. jewellers and others who make
taxable sales.