New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1921-08-04
ORDINARY EXPENSES
MUST Be CUT DOWN
ABOUT ESQ MILLION
Secretary Mellon Declares This Is
Only Way J Country Can Avoid
Paying Extra Taxes
TOTAL GOVERNMENT COST
WILL BE 4,550,00O,0O0

OF This Amount, House Ways and
Means Committee Is Advised, |
Almost Four Billion Dollars Must
Be Obtained From General Taxa
ton Throughout the Country.
Washington, Aug. "A cut of more
than $250,0OO.oO0 in the ordinary ex-
penditures of the government this
fiscal year is necessary if additional
taxes are to be avoided. the house
ways and means committee was in
formed today by Recretary Mellon.
On present estimates, he said, the
total government cost this year will
be $3.50, 100000, of which $500
100000 must com efrom taxation.
Even with the suggested reduc-
tions. Mr.. Mellon said, the internal
revenue yield for the year "could not
safely be permitted to fall below
$3.50. 100000 the estimated yield
under existing law"
First Month Costly.
The treasury secretary told the
committee that actual expenditures
for the first full month of this fis-
cal year, indicated that unless there
was IAN extraordinary new effort to
reduce expenditures the estimates
which the treasury had presented
might be regarded as conservative.
Ordinary expenditures for July he
said amounted to about $322,000,000
as against s307,oOo.ooo for July.
1920, while the current deficit last
month was $113,00O,0O0 as against
$4,000 900 in the same month
year ago.
Analysis of Figures.
'An analysis of the principal items
of expenditures for July, 1921" the
secretary continued, "shows that s59,-
100000 .was,son account of the war
Department $56.0oo.8o - On ac-
count OF the navy and $4,000 900
on account of the shipping board. If
expenditure; are to continue at any
thing like these rates, the estimates
will be greatly exceeded"
Big Cut Essential.
A big cut must be made in Sec
retary of the Treasury Melons ten
tative estimate of $4,eoO;0o0,o0o for
government expenses during the cur
rent fiscal year, declared republican
members of the house ways and
means committee who are framing
the new tax bill. They hope a billion
dollar reduction can be made. Sew
eral members believe that in no cir
cumstances should the government be
allowed to spend more than $780,
900, 900.
1t Is realized that cnly by such
action will the republican admins
tration be able to make good it's
pledge of tax reduction. Secretary
Mellon will appear before the COM
mittee to give his views as to where
cuts can be made. Director of the
Budget Dawes may also be called.
Economy Needed.
To accomplish such a reduction
committee members say shipping
board and railroad appropriations
must be cut to the minimum, army
and navy expenditures reduced. new
and extravagant legislation blocked
and general economies effected
throughout the government.
The feeling that Congress also must
stop what might be called its personal
extravagance growing. In the House
today due to the work of Representa-
tive Mann and Representative Garrett
(Tenn.), bill approprating 100000
to pay the freight charges on war
trophies to all parts of the country was
recommitted to the Military Commit
tee by a vote of 103 to 80. Under the
measure it was proposed to distribute
at the present high freight rates about
100000 articles, most of which are
nothing more than junk and have n
historical value The number of can
non is com mparatively small, but there
are hundreds of thousands of bel
buckles tin plates, spoons, hatterS
feed bags, bits, tin cups, chevrons
ropes, saws and other articles, whicf
it was proposed to send to various
cities at great expense.
Less Than is Needed
II the billion dollar reduction can b,
accomplished and the committee ap-
parently intends to provide less reven
ue than the treasury actually believe!
will be necessary the present taxes cal
be reduced about $500, 100000 If the
total revenues can be cut to $3,6OO,0 00t
the fiat tax on corporations from 1
only about $4,000, 100000, as thu
tariff and miscellaneous revenue:
would make up the balance.
The committee is strongly opposed
to enactment of new taxes on auto
mobiles and bank checks and to in
creasing the postage rate as proposed
by Mr.. Mellon. Instead, it would like
to see expenditures cut so that the ex
cess profits and the ice cream and soda
water taxes could be repealed and the
surtax rates reduced without substi
tuition of anything except increase o.
the fiat tax on corporations from II
to Is per cent.
To Kill Maternity Bill
Assurances have been received from
the House Appropriations COMMITTEES
that the Shipping Boards request fol
funds will be cut from 1925, 100000
to $35,000,000 or $40,00O,000. Move
ments also are under way to block the
maternity bill and other Legislation
likely to call for large drafts on the
treA&Qxy.