The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1922-04-04
CONGRESS-
is JOL7ED
BY MELLON
rells Legislators of $215,
100000 Tax Conec-
ton Shortage.
nv DAVID LAWRENCE.

fconvright. 1922, by The Argus.)
washington, D. c.. April 4.-Sec-
ratarx Mellon has dropped another
hon,hsheIl in the halls of congress.
He has officially disclosed that
se15 600 900 less will be avaiiapie
t-orn tax collections during the Il
months beginning this July than
NOS estimated in the budget. This
r,eans that unless congress hpds
ways TO cut down some OF the esu-
mated expenses contained In the
1923 budget, the American people
vill be asked to pay higher taxes.
Congress has been hoping that
at the fall elections some KIND OF
showing could be made that would
nrove the Republicans had reduced
the tax burden. The prospects
NOW are that on account OF the
falling off in business the tax col
lection was so much less than was
anticipated that the government
will face a deficit which IN norman
times would be regarded as unprec-
edented.
Deficit Is Certain.
This deficit will result lrrespec-
tive of whether congress enacts a
honus law and provides compen-
satiou for eX-setYIce men. ne
onlv difference in the case OF the
bonus is that the deficit Will De
much larger. For several weeks
there has been talk of using ap-
proximately $200,000,00O expected
to be paid by Great Britain as IN
terest on their war debt TO Amer
lea as a basis for the issuance OF
bonus certificates. Until Secretary
Mellon announced that there had
been a shrinkage of receipts from
tax collections, the plan has en-
eountered little opposition except
that President Harulng has said ne
wouldn't sign a bonus bill, unless
it were definitely established where
the funds could be raised and treas
ury officials insist there is no GER
talnty about the British paying any
interest money this year.
The treasury has also insisted
that if' the British pay their inter
est the money should be applied
according TO statute to offset the
equivalent in taxes imposed on the
American people at present for the
interest on the allied war debt. 4
total of nearly a half billion dol
lars is required annually to meet
the coupons Of government bonds
issued during the war. The ex-
perts have been figuring that the
British payments would cut down
that amount considerably and en-
able the government to give the
American people the benefit OF the
reduction on their next years ta1
bills.
Will Change Senate Tack.
But all this has suddenly been
swept aside by the disappointing
figures issued by Secretary Mellon
Nobody, of course, could estimate
exactly what revenues would be OBJ
tanned from tax collections anG
there is really no responsibility or
the administration for tentative
figures it used in the budget to COW
er estimated receipts. Now, how
ever, when more comprehensive
knowledge of the exact receipts
available from internal revenue Ii
at hand, congress cannot spend as
much as was estimated would be
possible. The budget itself fol
1923 showed a possible excess oi
expenditures over receipts of ap'
proximately SGT 100000 and con
gress has gone ahead in one house
at least and appropriated sums no
called for in the original budget
II Is true the senate has not tackled
these bills yet and it is fair to as
sumo that the S215, ,000, 900 shrink
age In tax receipts will carry con
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