The New York herald., 1921-08-06
Senator BOrah Asks Cut to
!, 100000 Men and Stop
page of Work on Six
Battleships.
WOULD SAVE S400,0O0,OO0
Original Plan Was to Repeal
BurdensOme War Taxes on
Jan. /, 1921, but Money
Is Needed.
Special Despatch to THE New YORK HERALD.
New York Herald Bureau,
Washington, ID. g., Aug. 5.

Special Despatch to THE New YORK HERALD
New York Herald Bureau,
Washington, ID. g., Aug. 5.
All the present taxes, including ex-
cess profits and high surtax rates. may
not be repealed until January l, 1922.
because of the great need of the Gov
ernment for revenue during the cur
rent year, as outlined by Secretary of
the Treasury Mellon. This was learned
to-day from prominent members OF
ihe House Ways and Means Commit
tee.
Previously it was planned to make
the repeal of the excess profits and the
reduction Of the surtax rates retro
active to January ]. 1921. thus reliev-
ing business of this burden during the
present year The new plan would
give the Government about 0.000, 600
more revenue. and, in the opinion oil
House leaders. would obviate the ne
cessity of new taxes, taking into con-
sideration a probable large reduction IN
estimated expenditures.
Should this be done it is prooahle
that the fiat corporation income tax
would not be increased from 10 to 10
per cent.
Meanwhile leaders in Congress are
secking a way to force q big cut in
estimated expenditures for the fiscal
,ear which Secretary of the Treasury
Mellon says will reach s4.55O,ooo,ooo
is t1Ir
The difficulty lies in the fact that
most Of the appropriations already have
been made for the expenditures esti-
mated by Mr.. Mellon.
Bornh Aims at War Costs.
As stringent economy measure,
Senator Borah to-day proposed that the
army be cut to 100000 men that Amer
!can troops in Germany be returned and
that the construction of six battleships
be stopped This would save S4O0,00V,-
0Oo. hN said. The Senator introduced
n resolution directing a reduction of the
army.
Republican leader Mondell gave as
surances that all requests for deficiency
appropriations will be cut to the ire
ducible minimum" and that every effort
will be made to force reductions in ap-
preparations already made. Leaders In
fact. indicate they will try to out
budget" the new Budget Bureau. 1t
vas learned that the House Appropri-
ations Committee will cut the request of
the Shipping Board for $125,00o,000 to
about S35.000.000.
MIR. Mondell is confident expenditures
could be cut so that the maximum
necessary from customs and internal
revenue would be $500, 100000 instead
Of $4,000. 900. as given by Secretary
Mellon. OF the former amount the tariff
would yield s37o,ooo,ooo, thus making
IN his opinion. tax bill Of about
$3.50. 10000
THE great problem is to get over the
hump OF the present fiscal year." said
Mr. Mondell MIR. MELONS figures are
the outside limit and include about
$500. 900, ,O0c 20 settle war obligations.
Personally doubt this amount OF
claims can be settled. Another trouble
Is that the Government Is paying all its
bills In cash and its debtors are asking
extensions Of credit"
Urges Army md Navy Cut.
Senator Borah. analyzing possible
means OF reducing expenditures, asserted
that cuts in the army and navy afford
the only possible opportunities that will
be at all conclusive. since they are the
source Of our greatest expense
lie figured that a saving of about
800 100000 can be effected. of which
$50, 900, 900 would be in lowering the
army force. and s250.000.000 In aban-
donina part of the battleship construc-
tion He argued that the bombing Cd
ncriWents on the Virginia Capes DEM
onstrAted that battleships now building
ere obsolete, or nearly SO, believing that
greater protection would be afforded
through submarine and airplanc con-
etructon.
Reductions In army and navy AZ this
time. Senator Borah said would demon
ttrnte to the world the good faith" of
the United States In calling the confer
ence for limitation Of ornaments as well
as making possible lowering OF taxes, or
nj least preventing an increase. Unless
something OF the sor. is done. he prophe.
sled heavy reductions In the Republican
majorttics In both Houses at the next
Congressional election.
The address comma nded undivided
attention and led n. times to general
discussion. practically every word Of
which enforced the need for economy.
Senator Brandcgeo (Conn.) especially
commended the proposal to have Amer
ican troops returned from Germany.
why Keep Troops an Gerrsfnnyf
Both Senators Brandegee and Borah
stated they saw no possible advantage
either TO the United States or Europe in
keeping the troops In Germany.
ITO increase taxation at this time
would be almost disaster and to fail 10
reduce them would be deplorablc," said
Senator Borah. II Know OF no way TO re-
duce taxes except by REDUCING expendi-
tures and we have no material sources
OF reduction except In the army and