The New York herald., 1922-11-01
HARDING WANTS TAX
FREE BONDS HALTED
VIII Again Ask Congress to
Check Exempt State and
City Issues.
TO AMEND CONSTITUTION
Mellon and Daugherty Unable
to Find Any Other Feast
BILE Method,
Special Dispatch to THE NEW YORK HERALD.
New. York Herald Bureau,

Special Dispatch to THE New YORK HERALD.
New York Herald Bureau,
Washington, ID. c., Oct. 81.
President Harding will renew his
Recommendation to Congress for legisla-
tlop to check the issue of tax free
securities by States and municipalities.
lie believes such legislation will have
TO take the form OF constitutional
amendment. as Secretary Mellon and
Attorney General Daugherty have not
been able to add to the Presidents last
message to Congress on the subject, in
which constitutional amendment was
suggested.
When the Administration came into
power the Treasury was concerned be-
cause of depreciation in Liberty bonds,
which were affected by the flood OF tax
free issues in the States. Liberty bonds
are now in a position to give no further
concern.
u President Harding is opposed TO any
tax changes and particularly to any
additional taxes. 1t was estimated that
the Federal Treasury would have a defi-
cit in the fiscal year of S600,0OO,0OO,
but this has been practically eliminated
through Sbe Budget Bureau. Admins
tration X Sders regard this as an out
standing achievement in the face of the
fact that interest payments on the ma
tional debt and payments on account
lof past wars of pensions and for the
disabled cannot be cut. Interest pay
tnents are decreasing, but those on ac-
icount of the world war for disabled
soldiers are mounting rapidly without
a bonus
Continued cuts In expenditures Will
make IL possible for the Government
srfA xpif1 q existing
}tax schedules. This is particularly true
pc what is termed the menace of tax
tree securities can be removed and re-
covery is made of huge amounts due to
1he Government in war fraud cases and
in back war taxes.
While the United States is struggling
TO keep expenditures within its income
the President and other officials will
pay no attention to efforts in many
directions toward debt cancellation or
postponement of consideration of for
eign debts. Reiteration was given at
the White House to-day to positive
statements that no such course would
be considered. 1t was added that some
European governments think such
move might he good one. but that the
United States does not
WASHINGTON, Oct. 31.-Classified Gov
ernment tax receipts for September
showed decrease of more than $276,-
100000 as compared with the same
month last year. Ths total receipts were
$354,2S4.246, as against $630.75S,713 for
the same month year ago. For the
three months ended with September, tax
receipts amounting to $500. .746.S74. re-
Elected a decrease of $366,000,000 as
compared with tire same period of 1921
Receipts from income and profits
taxes, declining by $2il. 900. 900, showed
the greatest decrease for the month. the
total for September, which included the
third instaflmeiit, amounting to $276,-
000.0 900 as against s517 1000, 600 for Sep
toniberrl last year. Tobacco taxes showed
an increase Of $3,000,000 for the month,
the total being $4,000. 900, against $685.
100000 a year ago.
Receipts from estate taxes for Sep
tember amounting to s5,000,000 showed
a decrease of $7,oO0.O00 compared with
the same month of 1871 tax collections
on distilled spirits amounting to $2,500,-
oeo fell off by s3.oOO.0o0. while mis-
cellaneous collections such as transporta-
tion and amusements amounting to s41,-
100000 decreased by s2S,000.000. Taxes
collected from corporations on the value
of capital stock. amounting TO $4,000
600 In September reflected an increase
OF $2,000,000 over a year ago.