Perth Amboy evening news. [volume] (Perth Amboy, N.J.) 1903-1959, 1921-08-05
MELLON WARNS
C0NM| M|TTEE Of
FAC|NGDEF|C|T
Says it Would be Folly to Re-
duce Revenues Without
Reducing Expenditures
u. S. MARINE is COSTLY
Would Ease Drain on Treas
ury in This Regard --Mon-
dell Opposes New Taxes
U. S. MARINE is COSTLY
[By The Associated Press.l


WASHINGTON, Aug. $40 real
ize their expressed hope of reducing
the nations tax bill by half bill
lion dollars, Republican leaders of
the House of Representatives appear
on the basis of treasury estimating
to be faced with the task of cutting
three-quarters of a billion dollars
from estimated government expen-
ditures for this fiscal year, or else
huge federal deficit next July l.
Secretary Mellon in statement
to the committee dealing with tax
revision, warned that even If more
than $3.50, 100000 should be Topped
off the estimate expenditure of $4,-
$50. 1000. the tax yields could not
safely be committed to below $S,-
$40, 900, 900, the estimate returns un-
der existing law. Coupled with
this warning is the declaration that
| it would be folly" to reduce reve-
lues without assurance of substan-
| tial additional reductions in expen-
ditures. Mr.. Mellon added that in
seeking to arrive at an estimate of
the cash outgo for the year the
treasury could not take into account
paper savings or hope for reduc-
tions in expenditures which cannot
be expected to materialize.
In a statement today Represen-
tative Mondell, Wyoming, Republi-
can leader declares in his judgment
it is entirely practical to reduce
+D{n hxt QE0n 000 nm
and still take care of the needs of
the government.
II realize that if all the bureaus
departments and agencies of the
government expended the sums they
have heretofore anticipated spend
ing, and in addition to that we were
called upon in variety of ways to
make large expenditures in actual
reduction OF the sum total of public
debt over and above the sinking
fund expenditures, we could not re-
Guce revenues. but neither OF these
things should happen"
n One of the big tasks before the
Ways and Means Committee is deter
mining where cuts in expenditures
can be made safely and the amounts.
Some Republicans of the committee
have said that with the $500, ,0O0'OO0
railroad financing plan proposed IN
pending legislation, it would be pos
sible to materially cut down the
S545.205. 900 estimate made for pay
ment to the railroads. At the trea-
sury it is explained this estimate is
Independent of the financing propos-
ed to be done by the finance cor
poration and represents payment on
account of the transportation act and
federal control. The outgo estimate
includes 5000. 100000 for the ship
ping board and some leaders say they
are determined to trim this total.
The outlay for the maintenance for
| the government merchants fleet is
! giving members of the House con-
| Germ. and there has been private dis
cussion lately of some plan to ease
| the drain on the treasury from that
direction.
Opposition to the new taxes sug-
gested by treasury officers continues
to grow with Representative Mondell
coming out against any increased
| postage and bank checks tax. The
| Representative leader also has said
he doubted either the necessity or
the adviga bility of the automobile
| levy.
He declared for repeal OF the
| transportation and soda water taxes.
excess profit tax, and the higher in
| come surtaxes with additional reve-
/ nue. provided through a per cent
increase in the corporation income
tax.
According to Charles A. Lyman
northumberland of the National
Board of Farm Organization. the as
sociations OF farmers over the coun-
| try are preparing to launch a fight
against repeal Of the excess tax. They
| have giver their views on the ques-
tion and Mr.. Lyman said if the com
mittee reports a bill with a repeal
| provision the farmers will appeal to
! the agricultural "bloc" and all other
friends in congress to work for its
defeat.