The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1922-05-09
MELLON is
FEARFUL OF
BIG DEFICIT
ID. S. Shortage of $340,
100000 May Increase,
He Says.
BY DAVID LAWRENCE.

| Copyright, 1872, by The ArguS.D
Washington, ID. c., May Sec
rstary Mellon sees no immediate
prospect Of lowering the estimated
deficit in government finances for
1923 of approximately $340,000,000
and gives the impression of fear
hat the deficit may be increased.
The secretary told this corre-
spondent that his recent estimate
was based upon every available
item of revenue that could be
counted upon, including the possi-
he payment of interest by the
British government on its war debt.
The inquiry was prompted by
umors of new sources of revenue
or increased taxation which might
be counted upon to wipe out the
1923 deficit, but the treasury an
dcipates none of these. This means
that the statement just issued by
Charles G, Dawes, director of the
budget, about which a general de-
bate has been precipitated in con-
gess, embraces only the fiscal year
/ 1922 In a nutshell 1922 will show
surplus of S45, 100000, or there
shouts, but 1928 will show deficit
which some officials think may
pass the half billion dollar mark.
"Political Ammunition"
The question is naturally asked
Why the government book keepers
prefer a surplus this year and
big deficit next year. The ans
yer is TO be found in the demand
Of political members of congress
for ammunition to use in the au-
tumn compaigns. They say frankly
that 1928 can take care of itself
that something might happen to
better the situation-but that 1922
il to be considered as a unit be-
0use the people viii vote on past
record rather than future possibili-
ties
Considering 1922 as a unit, it is
found that the surplus of S45000,-
900 was obtained by postponing
payment of practically 100000
900 which must be paid in connec-
ton with government control OF
railways. a settlement of which has
been delayed. If the 100000 900
had been paid this year, there
would have been a deficit for 1922.
The surplus therefore is accidental
and treasury officials who are not
Interested in the politics of the
situation reluctantly admit that the
surplus is purely theoretical. They
don't like to be in the position of
eontradicting congressional state
ments but they cannot at the same
time revise their political declara-
tons in which the figures of this
year and next year were given to
the public.
Only "Paper SAVING
When it comes down to esti-
mates of saving. no official cares
to comment on the practice which
has grown up of regarding esti-
mated expenditures as in the same
class as an actual expenditure.
Some estimates of government saw
Ing run as high as a billion dol
lars, it being contended that the
executive departments wanted to
spend larger sums than congress
would authorize. Many a business
man counts as saved" money he
might have spent but on his books
there is no actual money showing
schools of thought here. Some be-
lleve a reduction of expenses can
be and should be treated as an
economy. Others insist that it is
only paper saving and is not re-
ilected in any reduced taxation for
'ne rates this year are not appre-
cably lower than they were last