Evening star. [volume] (Washington, D.C.) 1854-1972, 1921-01-08
HARDING OPPOSES
TOO HIGH TARIFF
Does Not Believe Wall Should
Shut Off Very Imports
Giving Revenue.
BY ROBERT r. SMALL.


49, BY ROBERT T. SMALL.
MARION, Ohio, January S.-one
thing the legislative conferences at
Marion have determned-and that Is,
there's to be no billion-dollar tar1n
bill. President -elect Harding IS
urotectionist, a very ardent one. and
in the recent campaign surprised
many persons by dealing with the
tariff as a real, live issue. But he
does not believe the tariff wall should
be built 50 high as to shut on the
very imports from which the greatest
amount of revenue is to be expected.
No one can say just what the pro.
posed new tariff will raise, but tnat
Il will not go far toward ameiora1ns
the present tax burden OF the people
seems certain. Senator Harding nas s
been informed that virtually q ioo
per cent increase in the presenI. onnaes nnn
oON additional annually in revenue,
uroyided, Of course, imports continue
to fow in at the present rate
with annual appropriations Dy
Congress lowering around the $4,V0O'
400 900 mark, including interest ana
aeht II viii be seen that the expected
inc-ease in tariff revenue cuts but
comparatively small figure IN pro
vfdine for the general expense OF the
government. E
Gives ThenEht to Finsaees.
Senator. Harding has been giving
much time and thoaght 70 tnG ~ ahans and
the congressional leaders with whom
he recently has, been talking, iraI-
irns,fhak, the people OF the coonfry
are 1S&ecting 4 very substantial re-
duoticn in their income taxes At 2
frank. Mondell, republican leader of
the House Of RepresentativeS VINO
.was here q few dayD ago. frankly
told. Mr.. Harding that this reduction
could not be brought about Dy the
mere waving of a wand he 0e-
factory relief from tax burdens could
be afforded until Congress shall have
laid the foundation for such RELIEF
BY q very considerable reduction in
government expenditures.
He said it was true there might pc
adjustments or notifications of the
revenue laws. that would AFFORD some
relief, that would remove certain In
e0uaIities and tighten some burdens,
hut very substantial reduction in
government expenditures must pre-
cede and form the basis for any ma
terial relief or reasonably SATISFACTORY
readjustment.
M. Monden told Senator Harding, it
now develops. that it was going to be
extremely difficult to cut the appro-
priations for the next fiscal year be-
ginning July 1 below the appropria-
June 30. The best that can be hoped
for. apparently, is a reduction OF
about 5000, 1000, 600. In view OF this
fact il will take some rather sharp
financiering to reduce the income tax
levy for 1871. OF course. there has
been no reduction in the rates for
1920, and the payments for that year.
which begin March Is, will be on the
same scale as payments made during
1920 on the 1913 income.
Expects Inprsvenent In Year.
Mr.. Mondell thinks. however, that
after another year has elapsed. there
will be q big improvement He based
this belief upon change in the pol
icy. at the Treasury Department with
the incoming OF the Harding admin
istration. MI. Mondell thinks the
democratic administration, represent
ed by Secretary Houston. has been
attempting to pay or the war debt
too fast. He pointed out that up to
June 80 last we had paid 81 per cent
Of the net cost OF the war. including
foreign loan out of the current rev.
enues. or 44.57 per cent II the foreign
loans are excluded.
Senator Harding apparently agrees
with the contention of the republican
leaders that the democratic admin
isfration should have treated the $4.-
ol,O. Q00. 900 Of floating indebtedness in
cured during the war period as 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 Secretary Houston
and his predecessors in the Treasury
To nav of the floating debt, represented
by Treasury certificates. as rapidly as
nossible. It is, therefore, estimated that
doating debt will be reduced to bill
lion and a. half.
II will not be the policy Of the Hard
ing administration to continue to levy
var taxes upon the people in order to
continue such q rate Of paying of the
cost Of the war. In due course the new
administration will proceed to the re-
funding OF the victory notes, which ma
ture in May, 1923. 1t is possible also
that what remains of the floating debt
incurred during the war and forming
inst as much a part Of the cost Of the
var as the loans represented by liberty
honds will be converted SO that the
navments may extend over a number of
wears. The republicans see no reason
Why the cost Of the war should not be
spread out over the next fifty Or sixty
years.