Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-08-05

Washington Aug 5.-To realize
their expressed hope-of reducing the
nations tax bill by half a billion dol
lars, Republican leaders of the house
of representatives appear on the ba-
sis of treasury estimates to be faced
withathe task Of cutting three quar-
ters Of a billion dollars from estimat-
ed government expenditures for this
fiscal year. or else a huge federal
deficit next July441.
9 Secretary Mellon in a statement
to the committee dealing with the tax
revision, has warned that even il
more than $3.50, 600, 600 should be
Topped or" the estimated expendit
ures, of $4,5se,eee,oc the tax yield
could not safely be permitted to fall
below $3.50, 100000, the estimated
return under the existing law
Coupled, with this warning rs the
declaration that it would "be folly"
to reduce revenues without the assur-
ance of substantial additional reduc-
tions in expenditure. Mr.. Mellon add.
ed that in seeking to arrive at an es-
timateSof the cash outgo for the year,
the treasury could not take into &C
count paper savings or hope for re-
ductions in expenditures which can
not reasonably be expected to mater
ialize." ~
Could Out 500 Million.
In a statement published today,
however, Representative Mondell Of
Wyoming, the Republican leader, de-
cares that In his judgment it is en-
tirely practical to reduce the total tax
levy $500.OO0,000 and still take care
of the essential needs of the govern
nent.
the bureaus; departments and agen-
cies of the government expended the
sums they have heretofore anticipated
spending, and in addition to that we
were called upon Sin a. variety of ways
to make large expenditures in the ac
tual reduction of the sum total of
the public debt, over and above the
sinking fund expenditures, we could
not reduce revenues, but neither OF
0nesrof the big tasks before the
ways and means committee, 1T has
been explained. is to determine where
the cut in expenditures can he made
safely and the amounts Some Re-
publicans Of the committee heys.said
that with the $500, 100000 railroad
financing plan proposed An :, pending
I, teriany cut down the $545. .2o6, 900 es-
innate made for payments to, the
railroads. At the treasury, however
1t is. explained that this estimate is
independent of the y financing pro-
posed to be done BY the war finance
corporation and represents payments
on account of the transportation ACT
and federal control.
Would Cut Shipping Fund.
The outgo estimate also includes
5000 100000 for the shipping board
and some leaders say, they are deter
mined to trim this total. The outlay
for the maintenance of the govern
ment merchant fleet lis giving many
members of the house concern and
there has been considerable private
discussion lately of some plan to ease
the drain on the treasury from that
direction.
y Opposition Grows.
Opposition to the new taxes sug-
gested by treasury officers continues
to grow with Representative Mondel
in postage and bank check .tax. The
Republican leader also has said he
doubted either the necessity or the
advisability of the automobile levy
He declared for'repeal of the trans
portation and soda water taxes, thu
excess profits tax and the higher m
come surtaxes with additional reve,
nue. provided through a I S per cen
increase in the corporation accord
ing to Charles A. Lyman. secretary
treasurer of the national board O.
farm organizations, the association O.
farmers over the country are, pre-
pairing to launch determined figh
against the repeal of the excess prof
its tax These organizations alread.
have given their views on this ques
ton to the ways and means commit
mittee&sreports,, |, a bill with a repea
provision, the farmers will appeal t,
the agricultural bloc and all othe
friends In congress to work for its de