Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1921-12-08
MELLON STILL WAGES
FIGHT ON BONUS PLAN
So Much to Pay Treasury De-
cIincs TO Change It's
Attitude.
mo SUN DUE IN is MONTHS
Federal Treasury Must Provide for
UctlrinE or ltcfundtnE Tutnl OF
SJ..50,OO0.OO0 I'm Next lcnr and
Half.
icy United News.l

W.ASHINGToN, Dec. Tho ma
turity within tho next eighteen
months of $3.50. 100000 OF govern
mont obligations makes IT necessary
ticed and new burdens on the Treas
ury avoided. according TO Secretary
Mellon
The maturity OF these short dated
debts "stiil dominates the situation"
Mellon said In his annual report to
Congress, just made public.
THE greater part OF this debt will
have TO be refunded" said Mellon,
land the orderly conduct % the re-
funding operations will require the
Treasury's best attention for some
time To come"
'rho obligations maturing arc war
saving certificates Of 1918. the Vic
tory Liberty loan. and Treasury SER
ticatos of various series.
Stil Opposed 10 bonus mi.
The Treasury Department is still
opposed 10 the passage OF tho soldier
bonus bill, Secretary Mellon informed
Congress in his annual report.
Conditions, he said. have not
changed since President Harding
went before ;he Senate and induced
ii 10 send tho bonus bill back to tho
Finance Committee.
And the Trcasury's attitude re-
nains the same" Mellon added.
He gave no indication as to wien
he Treasury would deem 1t advisable
10 grant the bonus
Even without any soldiers bonus
or adjus:ed compensation the csti-
mates show that the Federal govern
ncnt viii spend in the fiscal year
o22 and again In the fiscal year 1872:
N
lict OF veterans Of the late war" Mol
Ion said.
Many obligations Retired.
Mellon said that during the past
year about f70o.O0O.0o0 OF short
dated debt had been refunded into
later lnaturities, and Victory notes
had been reduced 10 $4,000, 600. 600.
outstanding Treasury certificates
we're reduced Co $500, Geo. 600. These
fac!s, coupled with lower money r..cs
and higher prices for government
securities. Mellon believes, ARE most
encouraging" and indicate the gov
'rnmcnt Will he able TO proceed with
The great refundinE operations with
out undue disturbance to business"
The secretary devoted consider
able portion Of his report to dis
"ussion OF needed changes In the
system OF taxation. He declared that
Expenses of the government for some
>cars TO come VIII probably lie sew
'ral times those of prc-war years.
Would Distribute Tax burdens.
IT s., then. OF vital Importance mat
adjustments be made in our scheme OF
'aNatiou Whereby the burden viii no;.
tsl uudWly, either directly or indi-
roc;ly. upon any particular class, and
81 the same tim" viii not seriously
Interfere with productive industry
and The general prosperity OF the
country" said Mellon.
After pointing out the business and
Industrial depression. accompanied by
Unemployment. that have existed dur
ing the pas, year, Mellon said:
How iar-rcaCh'ug the co?scqucn-
ccs may lac, no one can as yc; safely
predict. Unemployment In all classes
has been very great. II these condi-
lions continue. our present burden of
taxation must seriously increase the
troubles az our people. 'bc hardship
and suffering resulting ~ n business
depression and pnrm..G mcnt In
cVitably fall most severely not upon
those paying high income t@Xcss bat
upon tile great body Of tho people o:
small incomes"
Opposes High Income ray Rates.
Mellon set forth i.JEtly arguments
~ favor Of reduction pt income xxx
rates. particularly surtaX rates, which
ne thinks should he ~ - per cent
Instead az the present maximum OF 20
Ter cent New and untried plans are
unnecessary he SAID
"'The necessary 'hijus,licnts can
readily bc made Y! retaining most OF
The present taxes. but substantially
reducing the rates. and experimenting
the revenues Ivy some additiona
taxes II, continued.
Eject of SuriuX Reduction.
ITO reduce the surtaX rates TO :
naNi,nur Of 20 per cent, ana grsdint
the reductions through all the braci.
cts, would mean an apparent loss II
revenue OF about sl3O,GO0u0c y q
per cent maximum rate on the SAM
basis would involve a revenue loss o
about S2op,u06,O0Q. other adjustment
which should hc made would 1roba bl!
Involve aH .,mouu; equal 10 that mao
ia tho surt.X rates. This loss o
rcY"rl!e. however. would not " per
Inancut. COR the reduced rates woul'
ultimately ID. productive OF NOR
revenue Imam higher rates
" It's. loss coVln not y" me: -.
csUnoms Mellon suggested tho -
IG!rct revenue could he raised cithc
10y placing q tax on certain srccif
articles or by "a iow-rate general IA
on "a br"ao claea Of articles or Trans
.ytiuns