Arizona republican., 1921-08-05

Without the assurance of sub stantial additional reductions in ex- penditures, he said. "It would be folly to proceed to reduce revenue merely in the hope of reducing expenditure. Even without change in the law reve- nue will shrink from natural causes and will shrink according to the pres ent outlook, at a faster rate than current. expenditures"
 Then he proceeded to show expen- ditures thus far in this fiscal year had increased as compared with a year ago. He said ordinary expenditures for July. the first month Of the fis- cal year. were s322.060, 0c0 as against s207, 100000 in July 1920. leaving a current deficit of s113.o00. 900 as com pared with a deficit of $76, 1000. .000 in July. year ago. Of the total expen- ditures last month 15,0o0. 900 was for the account of the military and naval establishments and $32.0eo, 900 for the shipping board.
 Representative Mondell. republican leader, declared in a statement that it was practical in his opinion to reduce the tax levy at least $5eo, 100000 and still meet all proper. essential expen- ditures of the government
 ''The excess profit tax and the higher income sur tax should be re- pealed and nothing submitted for them he said !"
 The so-called nuisance taxes. and the transportation tax. in whole or in part should be repealed and some simple. easily understood tax. as for instance the proposed five cent flat increase on corporation taxes. enact ed to provide funds lost by the re- peal of these last mentioned taxes"
 Possibly some other one form of additional tax may be necessary. but l doubt it. In any event, we should not, in my opinion, adopt the stamp. the bank check or other taxes of that character that have been suggested, and I doubt either.the necessity or the advisability of the. automobile tax"
 People are expecting a real re- duction-a lasting and not a wholly shifting of the burden.''
 In estimating the outlay this year at S4.55O 100000 Secretary Mellon said. account had been taken of the latest information from the spending departments of the government as to their actual expenditures for the year. of cuts in expenditures already re- ported to the treasury and of annual appropriations for this year already made by congress.
 Ordinary expenditures were placed at HOOP. .657,9 ,952 with an additional s551 .354.S65 public debt expenditure fixed by law. The ordinary outgo in- cluded s545. .206,0 900 for payments to the railroads on accoun. of the trans portation and federal control. but it was explained that no allowance had been made for possible cash expendi- lures resulting from withdrawals by the war finance corporation which has credit balance of about s400. .0O0.- 900 with the treasury and may draw down it's balance at least temporar- lily in connection with the railroad financing proposed under pending legislation.
 On the basis of the existing reve- nue law, Mr. Mellon figured that the excess of expenditures over receipts would belover s336. 900. 900. His esti- mate of total receipts was s4,217,643.- 1 900 based on the present law, or approximately s1,4oo. 900. 900 less than ! received last year. A further shrink age of returns next year was forecas.