The New York herald., 1921-08-05

5000. 900. 900. Mr.. Melons statement re-
veals that $545.206,204 will be needed
by the Railroad Administration during
the current year. The balance or the
war overhang is distributed among the
Shipping Board, the War and the Navy
departments.
The full statement or Secretary Mel
Ion follows:
TN accordance with the request OF
the committee. have brought with me
q statement which gives (a) tho latest
revised estimates Of the receipts and eA-
penditures of the Government for the
fiscal year 1922, Obj estimates OF the
yield OF internal revenue and customs
under the present law and the revised
law. and fc) a brief comment on the
principal changes suggested for consid
GRAFTON in connection with the revision
of the internal tax laws.
This statement shows estimated total
current expenditures for the present year
OF about S4.550. 100000, including sink
ing fund and miscellaneous public debt
expenditures which have to be made
under the law, for the most part out of
specially earmarked receipts which are
not available for general purposes
These estimates Of expenditure are based
on the latest information received by
the Treasury from the spending depart
actual cash expenditures for the year,
and make allowance for the cuts in
expenditure already reported 10 the
Treasury. The estimates take into ac-
count not only expenditures under an
nual appropriations for 1922, but also
under unexpended balances and other
available authorizations.
I'll. presenting these estimates ought
to say that the Treasury itself does not
-. <lt -
the Government offices. The Treasury.
OF course, is on a cash basis, and in
making its plans for the year ii can
take tIo account only actual cash saw
ings. IFor these very reasons there is
no o. h more interested. than the Secre-
tary Of the Treasury in reducing Gov
ernment expenditures, and / have no
hesitation in saying TO you that the
Treasury would many times prefer
further assured cuts in expenditure to
additional taxes of any kind. Without
doubt. the most helpful thing would be
further cut in Government expendi-
ture. and nothing would be more well
come to the Treasury.
Without the assurance OF substantial
additional reductions in expenditure 1t
would be folly to proceed to reduce
revenue merely in the hope of reduced
expenditure Even without change in
the law revenue will shrink from nat
ural causes ard will shrink, according
TO the present outlook. at a faster rate
than current expenditures.
Estimates Are Conservative.
"The actual expenditures for the flrst
full month Of the present fiscal year
indicate that unless there Is an extraor
dinary new effort to reduce expendi-
+,,, ~ toe r-,a,
has presented may be rega rded as con-
servative. Ordinary expenditures for
July, 1921, amounted TO about s322, ,000,-
600. as against 1907 100000 for July.
1920 while the current deficit for July,
1921. was about S113, 600, as against
S76.000.000 for July, 1920. An analysis
Of the principal items of expenditure for
July 1921, shows that $4,000, 900 was
on account of the War Department, s56,-
100000 on account OF the navy and
s32, 900 on account of the shipping
board. II expenditures are to continue
at anything like these rates, the esti-
mates viii be greatly exceeded
Taxation and tax revision depend
upon public expenditures. According to
the latest. advices received from the
spending depa artments. and after taking
into account all estimated reductions in
expenditures reported to date, the Treas
ury estimates that the total expenditure
for the fiscal year 1922 for which pro-
vision should be made out Of the cur
rent revenues of the Government will
be about s455o, 900 900, This in itself
would mem a substantial reduction in
current revenues and expenditures below
the fiscal year 1921. The total ordinary
revenues for 1921 amounted to about
S5,625 000 900, or over 81 900. 600 900 In
excess ot the revenues estimated to be
necessary for 1922. .~-'
Miscellaneous Revenues.
THE estimate for 1922. moreover.
does not mean that s4,55o, ,00o, 900 must
be provided by taxation. 1t is estimated
that there will be miscellaneous reve-
nues during the year from salvage and
sources other than taxation amounting
to about s350.000.000. This would
leave 00.000.000 to be provided from
customs and Internal revenue. 1t IS esti-
mated that the revenues from customs
under existing law would be about
$500, 600, 900 for tho. year. and that these
might be Increased by about $40, 900, 900
II a revised tariff law should become
effective abou December 81. 1921. The
balance, al S3S30,000.000 (as
against estimated internal revenue yield
for the year under existing law OF
$3.50. .0o0.000) should be provided out
of internal revenue. This revenue can
be safely reduced only IL and to the ex-
tent that further reductions are en-
forced in the spending departments OF
the Government. This means that II
additional taxes are to be avoided there
must be additional effective cuts In or
dinary expenditure of over $3.50, ,000, 900
and that even IL such cuts were assured
the internal revenue yield for the year
could not safely be permitted to fall be-
low $3.50. 100000, the estimated Yield
under existing law The reductions in
expenditure reported UP to date have
been taken into account In framing the
estimates
"A classification OF estimated expendi-
lures for the fiscal year 1922 follows:
(''Based on latest estimates from the spend
ing offices, with allowances for all reduc-
tons reported to date.')
Legislative Observation-Disclosures. si7,2i3.sfs
Executive ...................... ,s07, ISL
state Department .............. 1884 600
Department of Justice ......... 1000. 900
Post Office Department. ..... 22O0. 600
Interior Department Including
pensions and rndians) .... 323. .ooo. 900
Department Of Agriculture. .... 123, ,0OO. .OO0
Department Of Cornmerce. ~ o23. OOO
Department Of Labor. ........ 1882 ss7
Independent offices ........... ~, ,AS4 5fS
District OF Columbia .......... 22,1ST. .6s3
Miscellaneous .................. 81, SOC, 600
Postal deficiency .............. 20. OOO. 00o
Bureau of War Risk Insurance.. ESQ, ,0o0, 600
Public Health Service. ......... 4T.n00, 900
Collecting revenue ....-........ h3,1lo.1Sa
+ All OlltF ss..s..s...4.s..s. Nn.a1F .TN9
Federal Board for Vocational
Education ................. Ie2. .sss. .1s4