Perth Amboy evening news., 1921-07-09
GIVE THE ADMINISTRATION A CHANCE.

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Only a few days ago the country was APP
plaud.ng the speech of General Dawes, the new
director of the budget, for his red-hot speech
before cabinet members and bureau chiefs at
Washington in which he read the riot act to
them regarding extravagances in government
expenditures. He insisted that they would have
to pare to the bone in every department in an
effort to save money. There was no doubt that
he meant exactly what he said. Furthermore,
President Harding. who attended the session,
has made known his intention to back General
Dawes to the limit.
This government economy is something the
people have been demanding for years, par
ticularly since the war closed, but up until now
there has been little indication of getting any
where with it. A budget system has long been
needed. but not until now has the legislation
necessary for putting such a system in force
been enacted. But even the passage of this law
did not worry those holding soft government
Jobs very much because they have lived through
30 many previous attempts to GUST them from
their sinecures that they felt that the present
effort would go by the board like all the rest.
The situation took on an entirely different
aspect, however, when President Harding
picked General Dawes to take charge of the
new budget. Dawes may be a great many
things, but he is no buffer. His Is the direct
action method and when he sets out to do a
thing it generally gets done. That is the reason
the country hailed with delight the appointment
of Dawes and read with entire approval his
speech to the department heads regarding
economy. 1t was felt that at last something
really worth while was going to be done to
cut government expenses. save the peoples
money and thus reduce taxes.
Now suddenly is revived the agitation to pay
a federal bonus to all the veterans of the World
war, the total of which is estimated at any
where from So, 900. 600, 900 to $1,000, 900, 900.
The bill has been brought up in the senate and
finds ready support among the At
once the entire plan of the administration to
cut down expenses, save money, reduce taxes
and thereby assist greatly in bringing about a
revival in business generally, is knocked into
Q cooked hat.
~ Secretary Mellon. of the treasury depart
nent, points out in his letter to Senator Free
iinghuysen, il the bonus bill is passed now and
the government commits itself to the payment,
beginning next year. of from $4,000. 100000 to
SIS, 600, 900, 900, taxes must be increased instead
OF reduced, all efforts at economy will be futile.
II Tile. ulldHCCo VI ~ hoeiOh "At wv ~HNNN
more dificult and confused than ever before,
thus prolonging the present unsettled conditions.
IT must be realized that any bonus paid by
The government must come from the taxpayers.
The people have got to furnish the funds. With
The government expenditures already greater
than the income in spite of the heavy taxes
heing paid, it stands to reason that to add
nywhere from SO. 900. 900, 900 to $5.oo0,0O0,oOo
to present government expenditures means the
need Of q still greater income for the govern
ment than it at present receives. How is this
added income to be raised? Secretary Mellon
bluntiy states that new taxes will have to be
Imposed. BY this he means that in addition to
the present high taxes on incomes and excess
profits, on railroad transportation, tobacco and
amusements and soft drinks and other nuisance
taxes" and in addition to the new proposed
taxes on automobiles and gasolene. a sales tax