The Washington herald., 1922-04-19
PREDICTS HALF
BILLION DOLLAR
DEFICIT IN 1923
Secy. Mellon Expects Fed
eral Income to Fall
Short of Demands.
BRITISH PAYMENT
MAY AID SITUATION
Other Possible Expenses
May Increase Shortage
To $634, 900, 900.


A deficit of $500. .0OO, 600 for IN.
nscal year 1923 is predicted by Sec
retary Of the Treasury Mellon.
The Income Of the Federal gov
eminent during the year will fall
short by that amount OF meeting
the demands on the Treasury. Mr.
Mellon has informed Chairman Nc
cumber. OF the Senate Finance Com
mittee. and Chairman Fordney. Of
the House Ways and Means Com
mittee.
Mellon ventures no opinion as 20
how this huge deficit should be
met.
Expenditures during the fiscal
year 1929. which starts July 1 next.
will be s3.s57.0O0o0o. according 10
Secretary MELONS estimates Re
ceipts during the same period viii
be S3.2ss.00o. 900. This is an excess
OF expenditures OF s35e GOO. 600. In
addition. there will be Sl25. G00. 0aa
accumulated interest Of war savings
stamps January !. 1923 when thi.
is added. the total is sis4 600. .O0O.
Additional Possible Expenses.
But that is not all. Mr.. Melons
figures do not take into account
possible expenditures as the result
OF a soldier bonus, a ship subsidy.
or Increased rivers and harbors ap-
propriations. The ship subsidy
would add 10000. 900: the bonus
s75.Ooo.O00: the rivers and harbory
| increases approved by the House
Aalready amount to s25.0OO.e 600. So
Sthere il s150.00o. 600 more. which IL
seems likely Congress will spend.
The total deficit. with the addi-
tion OF this figure. Is increased to
ss34. .ooo. .oo0
Mr.. Mellon explained that most
Of the important appropriation bills
for 1879 remain to be enacted. and
IL f. therefore impossible to est
mate with precision just what will
bsspent But such figures as were
| available have been checked with
the departments concerned. Appro-
pristions do not furnish an accurate
guage OF what a department viii
expend. in any event. SO il is prob
able Mr.. Melons figures are res-
sonably accurate.
England May Pay.
Some assistance may be expected
from payments OF interest by IN.
British government: The tre~su--
has not had any official notification
that interest will be paid in that
yeor Os23D on the British obliga-
tions held by the United States.
though there haNs been several nfii-
cial announcements in Great Brit
ain OF an intention to include thai
item Of expenditure in the British
budget for the current fiscal year
said Mr.. Mellon.
Despite the lack Of official assur-
ances from Britain. Mr.. Melons
figures on payments of about ssoo.-
600 900. in arriving at his estimated
deficit. Mr.. Mellon took into ac-
count also an indicated shrinksRe
in internal revenue collections Uf
about s2l5.0OO.OeO: an estimated
shrinkage in bank franchise re-
ceipts Of about So. 5.0oO.0 600: estimat-
ed collections by the War Financ-
Corporation Of 100000. .O0O: and
estimated additional expenditures
for the railroads of 5000 .ooo.o
hNccss OF S@sstNso<y.
For the current fiscal year. Mr.
Mellon stated. an excess OF eNpen-
dItures over receipts Of $4,000 .ooo.
is indicated. where formerly 81 was
figured there would he a deficit of
se44ss This apparently is largely
due to the postponement Of rail
road payments from the current
year to 1928.
..rk. no.,na,o,,... - ,ho.. ,,,-
ments TO 1923 is reflected. Of
course. in a corresponding reduc-
tion Of railroad exVfditures for the
fiscal year 1922" Hr. Mellon said.
The payments to railroads will
be s100.0o0.0o0 under the six
months guaranty and another
500. 600. 900. is added. for deteriora-
tion Of property under Federal con-
troll. Neither Of these. items was
inclosed in the budget submitted in
December; hence the deficit indi-
Gated by Mellon is increased. Fur
ther. the sale of s230. coo. 600 Of rail-
road equipment trust notes altered
the figures The consequence is
that the railroad account for the
current year shows credit OF $50.
900 600. compared with estimated
expenditures OF about s337.000.0 .00s
when the budget was submitted.
This shift was in part offset by
Withdrawals OF sl9O.ooo.0e0 by the
War Finance Corporation.
Mr.. Mellon does not refer to
more than sl.00O.000. .0Oe in claims
now before the Department OF Jus
tice. which Attorney General
Daugherty said would probably not
be settled for less than 50 cents
on the dollar. Nor does he refer g.
some 100000. 600 Of claims against
the Shippinc BOARD