The Washington herald., 1922-04-22
MELLON EXPECTS
HUGE DEFICIT FOR
FISCAL YEAR, 1923
Veterans Relief to Get
Nearly Billion-OHaire
Named Auditor.

The Treasury Department expects
to effect a reduction in expendi-
lures for the fiscal year 1898 OF
$3.50, 600, 900. compared with the cur
rent fiscal year. II was learned
Yesterday. However, II is expected
that the net result of 1922 and 1898
operations will represent deficis
of approximately s3i2,ooo,ooo.
Income and profit taxes for the
fiscal year 1922 are estimated at
s2,0ss.oO0. 900. They are expected
to drop to $500. 100000 during the
coming year.
The War Department expenses
for 1922 will be approximately
$3.50. 700, 900. and for 1928 will be
about s370.OOO. 900. or a saving Of
s1s,oOO,OO0
The navy is expected to spend
s45s.00o.o0O this year. compared
with an expenditure OF $500, 200. 900
for 1923, a saving OF s5s.o0O, 900.
Total saving for the War and Navy
departments is thus s77,0O0,0OO.
Good roads are being benefited
to the extent Of 'sI05, 900. 900 this
year. while s125.000, 900 will be ex-
pended next year. Based on a cost
of $4,000 a mile. the combined
sums should be sufficient to build
$500 miles OF new road.
The postal deficiency for this
year is estimated at 1900. 900. but
this is to be reduced to $4,000. 900
next year.
= Secretary Mellon has estimated
the cost of veterans relief for 1929
at s477.OoO,O0O; next year it will be
$500, 900, 900.
In view of expected smaller earn
ings Of Federal Reserve banks, it Is
not surprising that estimated re-
ceipts from Federal Reserve Bank
franchise tax are only s5.OOO.O0O
for 1923. compared with s59,975. 900
for 1922, and s6O.700.0O0 for 1921.
Interest on the public debt is
estimated at s1,oOO,OOO.OOO this
year. Next year it will be ap-
proximately ss75.OoO.OOO.
Adopts Re ponsIbIIIty Policy.
The District Guaranty Corpora
tiOn has appointed Daniel O'Haire
corporation auditor, with independ-
ent responsibility and authority in
the accounting matters of the cor
poration.
This step is along the lines of
English procedure. where corpora
ton auditors are elected and
charged with entire responsibility.
The principle back OF this form Of
procedure is the acknowledgment
: Of public responsibility and liabiI-
ity attaching TO the accountant.
who possesses special technical
knowledge and who prepares re-
ports Of financial conditions upon
which credit Is based, net earnings
determined, valuation of collateral,
and balance sheets prepared for the
information and Guidance of banks
stockholders and the officers and
directors OF the company.
The accounting profession has en-
couraged this practice. and It IS
believed that the District Guaranty
corporation is one of the first cor
porations in the United States to
adopt the principle
Mr.. OHatre is chairman Of the
public accountant COMMITTEES OF
Washington. D.. C.. which commit
tee is seeking to have an amend
ment inserted in the Capper biz.
now before Congress. creating n
Eoard OF accountancy- claus.
which would make the rendition Of
false statement Of accounts or
ma ncidl conditions a misdemeanor
punishable by both fine and i'm
Lrisonment. and charging the pro-
posed board OF accountancy with
the enforcement of all provisions
Of the act.