The New York herald., 1921-09-18

New York Herald Bureau
Washington ID. c., Sept. II.
PPROXIMATELY $5,780,0 100000 was
~ expended for luxuries and enter
tainment in the United States in
the twelve months period ended with
June, reports of the Internal Revenue
Bureau indicate
In the preceding year luxury expendi
lures totalled roughly $6,45O,0 100000.
Purchasers of amusements and frivoli.
ties now are indulgng themselves more
moderately, the reports show. There has
been falling off of approximately $780,
100000. Unemployment and propaganda
put out by the Government to encourage
thrift is believed to be the reason for the
reduction in luxury purchases. The pres
once of great army of jobless is hav-
ing its effect upon the spending activities
OF people in all sections of the country,
officials say.
= The figures on luxury expenditures are
estimates merely and are not contained
directly in the official reports of the In
ternal Revenue Bureau. On cigars, ad
missions to moving picture theatres and
other places of amusement and on many
articles in the non-necessary class, the
Government collects a tax ranging up to
10 per cent. The estimate on the luxury
expenditures is obtained by multiplying
the tax by ten. The estimates thus OBJ
tanned are constructive rather than high,
Government officials explain. This is be-
cause not all luxuries pay taxes.
In the fiscal year ended with June the
Government collected total of approx
mately S57S,000,000 in taxes on cigars
and cigarettes, admissions to theatres and
club dues, and on the sale of a host of
commodities like jewelry, automobiles,
pianos, fancy toilet soaps, wearing ap-
parel, sculpture and the like. In the pre-
ceding fiscal year the tax amounted to
more than s645,000,000. In each year
levies on luxuries and amusements paid
roughly one-fifth of the total of all taxes
collected by the Internal Revenue Bureau.
Government Urging Thrift
Despite Reduction in Revenue
Despite the fact that it means decreas-
ing revenues the propaganda of the Gov
ernment for more moderate luxury and
amusement spending Is being carried on at
full blast in all sections OF the United
States. Under the direction Of Secretary
Mellon the Treasury Department through
it's thrift bureau, is waging a constant
warfare against reckless expenditures.
Working along this line, the Treasury
Department thrift bureau is circularizing
the country with posters calling attention
to the necessity for economy and advising
the purchase Of Government securities like
war bonds and notes and War Savings
Stamps Taking another tack, the bureau
ia making a campaign to interest ministers
mayors of cities, State and county officials
and civic organizations and chambers of
commerce. Neghborhood thrift clubs are
being organized. School teachers are being
appealed to for assistance in getting the
campaign across to their students. Wom-
ems clubs are giving every possible assist
ance.
That thousands of persons are becoming
interested is shown by the fact that letters
from every part OF the country now are
flooding Treasury Department officials.
The . mpaign, they feel certain, Is having
an aro. eciable effect.
Reports TO the office of the Comptroller
OF the Currency indicate that deposits In
savings institutions are holding up despite
widespread unemployment. Another in
dicaticn that the campaign Is succeeding
is shown in the number of persons who
own and are buying homes but who for
merly lived in rented homes and apart
ments. Deposits in building and loan
associations are on the increase. Money
is becoming more free" for such organiza-
tions and the tight money days of the last
few months are giving way.