The Birmingham age-herald., 1921-01-09
HARDING WILL NOT
 GIVE HIS ASSENT ID
 GREAT TARIFF WALL
Republican Leaders Seem to Agree That Democrats Have Been Paying War Debt
 Too Rapidly
Fly ROBERT T. SMALL

Marion. ohio, January s.-tspc- ferences at Marion have determined and that is that there is to he no bti- lion dollar tari6 bill. rresident-clect Harding is a prOtectionist, very nr- dent one, and in the recent campaiS~ surprised many persons by dealing with the tariff as real. live issue. Hut he does not believe the tariff wnu should he built so high to shut or the very imports from which the great s est amount of revenue is to be derived.
 One can't say just where the pie posed tariff will raise but that 1t will not go far toward amelioratng the present tax burden of the people seems certain. Senator Harding has been in- formed that virtually 100 per cent increase in the present duties would yield approximately S350.000,000 addi- tional annually in revenue, provided, of course. imports continue to flow in at the present rate. With annual ap- propriations by Congress posing around the $4000, 900, 900, including interest and sinking fund charges on the pub- lie debt, it will be seen that the cx- pected increase in tariff revenue cuts but comparatively small figure m providing for the general expense or the government.
 GIVING IT MUST THOUGHT
 Senator Harding has been giving much time and thought to the financial side of the government. He and tho congressional leaders with whom hsl recently has been talking realize that the people of the country are expect ing a very substantial reduction in their income taxes at very early date Representative Frank Mondel, repub- lican leader of the House of Repre- sentatives, who was here few days ago, frankly told MT. Harding that thsl reduction could not be brought aboul by the mere waving of wand He declared that no considerable or satis- factory relief from tax burdens could be afforded until Congress shall have laid the foundation for such relief by a very considerable reduction in gov ernment expenditures. He said 1t was true there might be adjustments or notifications of the revenue laws that would afford some relief. that would remove certain inequalities and tighten some burdens, but a very substantial reduction in government expenditures must precede and form the basis for any material relief or reasonably satisfactory adjustment.
 HARD TO MAKE CUTS Mr Mondell told Senator Harding, 1 it now develops, that it was going to i be extremely difficult to cut the ap- propriations for the fiscal year begin ming July below the appropriations l for the year which will expire June 30. 1 The best that can be hoped for ap- Iparently is reduction of about S200,- 1 100000. In view of this fact it will take some rather sharp fnancIerpjg to reduce the income tax levy for fySI. or course there has been reduction
 in the rates for 1921, and the pay ments for that year which begin
 March l5, will be on the same scale as payments made during 1920 on the 1919 1 incomes,
 Mir, Mondell thinks, however, after ianother year has elapsed there will be | a big improvement He bases his be- lief upcn change in policy at the l treasury department with the incom- ing of the Harding administration. MT. | Mondell thinks the democratic admin 1 istration, represented by Secretary Houston has been attempting to pay
 off the war debt too fast. He pointed out that up to June 30 last, we had paid 3a per cent of the net cost of the war including foreign loans out
 of the current revenues, or 44.57 per cent if the foreign loans are excluded.
 PAYING DEBT TOO FAST
 Senator Harding apparently agrees 1 Headers that the democratic adminis- tration sh/uld have treated the S4000,- 100000 of floating indebtedness in- cured during the war period as a part of the cost of the war and arranged
 for its payment over a long term of years, just as the Liberty loans are to
 be paid off. Instead of doing this.
 however, it has been the policy of Sec
 retary Houston, and his predecessors
 in the treasury to pay off the floating
 debt represented by treasury certif-
 cates, as rapidly as possible. It is,
 therefore, estimated that by June 30, , next. the $4,000 000,000 of floating debt
 will be reduced to o7$1 800, 900. 900
 It will not be the policy of the
 Harding administration to continue to
 levy war taxes upon the people in or- ) der to continue such rate of paying off the cost of the war. Tn due course the new administration will proceed to the refunding of the Victory notes, !. which mature in May, h923. It is pos sible also that what remains of the
 floating debt incurred during the war
 and forming just as much a part of the cost of the war as the loans represent- ted by Liberty bonds. will be converted so that the payments may extend over a number of years. The republicans
 see no reason why the cost of the
 war should not be spread out over the next 50 or 60 years.