Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-01-25


'The figures" he said, "show that
there will be no availble surplus, but
more probably a deficit, and that with
the enormous refunding operations the
treasury has to conduct. it would be
dangerous to attempt to finance the
expenditures involved in the bonus
through new borrowings. The posi-
tion of the treasury remains unchanged
but if there is to be a bonus, it is
clear that it must be provided for
through taxation
On the other hand. as no indirect
means of financing the bonus would
make it any less an expense to be
borne in the long run by the taxpayer,
he declared for the taking up the pro-
posal to use the foreign debt as a
basis for bonus payments.
Liberty Bonds Another Bar
1t is impossible, he maintained, in
advance OF funding arrangements, to
estimate what may be collected ON the
foreign debt by way of principal and
interest The obligations. which are
in the form of demand obligations, are
not, he asserted, in shape to sell to the
public
1t would accomplish nothing. he ar
gued. to set aside the foreign debt
for the payment of the bonus. even if
enough could be realized in time.
''As the law stands" he said, land
in justice to the millions of liberty
bond holders, the government is bound
TO apply any principal payments by
foreign governments as we'll as any
proceeds of sale, to the retirement of
outstanding liberty bonds
just Shifting Cost, Not Escaping 1t
Interest collected, he declared. should
also so to provide interest on liberty
bonds. so that if the proceeds of the
foreign debt We're applied to the bonus,
the government would. to that extent
have to provide for the principal and
interest of liberty bonds from other
sources. This means, he asserted,
taxes otherwise unnecessary.
"The plan to use the foreign obllga-
tons to pay soldiers bonus, there
FORE Mr. Mellon continued would
still leave the burden on the shoulders
of the taxpayer"
Discussing the financial outlook of
the government. Mr.. Mellon presented
figures covering budget estimates
over $4,000, 600 for 1922 and deficit
of over S1S7.OOO 900 for 1923, not.
allowing for S5O,0OO.O 900 requested by
the shipping board for the payment Of
claims, $7,00O,0OO to be spent for Rus
sian relief by the United States grain
corporation and S5OO0.000 to be paid
as the 1923 installments under the
treaty with Columbia, together with
otrer items making a total OF $112,-
100000 chiefly for 1923.
Rather Should Cut S30O, 100000
To overcome these deficits. he ex-
planned, expenditures must be reduced
by about 100000, 600 in the next two
years. while the government faces a
heavy shrinkage of receipts.
The overshadowing problem of the
treasury, he declared, was in the
handling of the public debt amounting
at the end of the past scar to $23.-
43S. .9s4,351. of which $4,000, ,OOO, 600
falls due within the next -16 months.
Might Cost Three Billion
How much additional taxation would
be necessary to pay soldier bonus.
he declared. would be difficult to esti-
mate. but on the basis of the McCAm-
Der bill it would appear that the total
eost would be about $1,000, 100000, of
which at least $3.50, 100000 would fall
due in the first two years of operation
and possibly as high as 81 900, 900. 900
# an unexpectedly large number Of
Veterans should choose cash. The
minimum cost he placed at about ST. ]
560, 100000. based on cash payments.
md the maximum cost at about So
.5O,00O,0O0, if all the veterans should
AXE certificates in lieu OF cash.
These estimates, he added. took no
account Of the cost of administration |
md the expenditures involved would
,e, in addition. about $3.50. 600, 600. a
rear for 1922 and 1923 already esti-
mated for relief of disabled veterans. |
20 discover new taxes that could prop |
,rly be levied to yield as much as $3.50
100000 within two years, he continued,
would be difficult, as the field Of tax
ltion has been SO thoroughly covered. :