Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1922-12-06
MELLON SAYS MORE
FEDERAL TAXATION
IS NOT NECESSASY
Secretary of Treasury Takes Issue With Farm Bloc ana
Advises Reduction in Surtax From 30 Per Cent
Maximum to % Per Cent.
TAXES RESTRICTING BUSINESS GROWTH
Charges In Report To Congress That Scarcity Ot LABOR
Is Being Caused By Restricted Immigration
Too Much "NIiddemen' Profits On Products.

Washington, Dec. 6-Secretary of
the Treasury Mellon today Informed
Congress that no additional federal
taxes will be necessary during the
coming year, if 4 policy OF rigid econ
omy is enforced.
In his annual report on the financial
operations of the government during
the last fiscal year, the secretary
strongly urged one reduction IN tax
es-a 50 per cent cut in the persent
surtax leyies on big incomes. The
present maximum surtaX rate IS oO
per cent, which applies to incomes OF
100000 a year and over. Mellon
suggested that the maximum be fixed
at 20 per cent, and the other rates on
incomes below 100000 reduced ac-
cordingly. Taking direct issue with
the farm bloc which was largely re-
sponsible for the present rates, Mellon
asserted that the high levies are re-
strieting business expansion and that
lust as much revenue could be obtain
ed by cutting them in half.
Other outstanding points of the sec
retary's report were:
]. The country already IS suffering
from a scarcity of labor, due to lmml-
grafton restriction and the general
resumption of industrial activity, with
the consequence of higher wages than
last year and greater manufacturing
costs.
.. The railroads are suffering from
undermaintenance and inadequate
equipmeh., and are unable to meet the
demands of business.
3. Farm products are selling too low
at the farm and too high at the distrl-
buting centers,
). The unesttled condition in Eu-
rope is endangcring the foreign mar
kets for many of our products. and !
business in this country cannot pro- |
gress without foreign markets.
6. The Treasury believes by keep !
ing its house in order it can best aid |
Europe at the present time.
=. Further issuance of taX-eXempt |
securities, which now total approx |
mately ,OO0,000,000 and are IN
creasing at the rate of Sl,O0O,OOO,- |
600 a year should be prohibited by |
constitutional amendment.
8. Every effort is being made to |
speed the collection Of back taxes.
9. Custom receipts during the year |
ending, June 80, 1922, although the |
low Democratic tariff was in effect.
totalled 1857 ,544,712, the greatest IN
the history of the country.
10. The value of Liberty Bonds has |
increased S2,500 100000 since the low |
marks of 1920.
For the present fiscal year, which |
ends next July /, Mellon said present |
figures indicate deficit of $27+OOO,- |
600. as compared with estimates OF
S697 100000 at the beginning of the /
year.
For the next fiscal year, the period /
from July. 1923. to July, 1924, sur /
plus of SlS0,969,125 was estimated
but it was emphasized strict economy
is necessary to obtain this surplus
AnnropriationS asked for by the bud
oct bureau for the next year total
e O79. .e4O ,SS1 90. a reduction of $685.
0O0 600 as compared with approprla-
lions for the current year.
ar will not be necessary at TINS
time 20 consider any additional taxes
Gov. the Treasury hopes to overcome
INV deficiencies in the revenue with
"nt recourse to new taxes, SAID Mel
Ion in expressing the hope that the
Tni;,;t ,I,i for the current year might be
wiped out completely ..,...
Mel,on's diagnosis of the country
business industrial and financial s't-
v"t;nn was one of the frankeSt state
,,,snts ever made by cabinet otheer.
IN contained no rose prophecy Tor C-ls
fntnre. but emphasized that the Soou
sense and hard work by American ouS-
ness must steer the commercial StrGT- T
trre of the nation from some pi'i"''S
"The - months which have passed
s;rce the last annual report have 0eeh
worked bv further liquidation ana re-
nnverv from depression, and, more re-
oentlv. bv a substantial revlVa' u
business" said Mellon.
"Prices of commodities have rlSsn ,7
,,,o+er;aIlv and inventories gener9lIy
aro low the volume of business mas
besn mounting to higher Levels: ana IA.
Ioy tbroughout the country Is agaln
fully employed. The year IS CLOSING s
,y;tb bountiful crops, and the severe
depression in agriculture has oeei II
Continued on page SKI