The New York herald., 1922-04-19
Secretary Mellon Sounds An
other Warning by Showing
Estimates for 1928.
REPLIES TO McCUMBER
Possible Appropriations for
Public Works and Ship Sub
sidy Not Included.

Special Dispotch 70 The NTw fonK HERALD.
New York Herald bureau.
washington. ID. c., April IL.
Secretary Mellon to-day sounded an
other note of warning against the
bonus, although he made no direct
reference to that most disturbing or
legislative problems.
Replying to a letter from Chairman
McCumber OF the Senate Finance Com
mittees The Secretary transmitted q
statement containing the latest esti-
mates OF his department regarding the
receipts and expenditures for the next
two years.
A detailed table which the Secretary
added showed that the expenditures
for Government purposes for the fiscal
year of 1923 would exceed by s3os,-
900 900 the receipts, and that IL ac-
cumulated interest on war savings
certificates is included the indicated
deficit would be s4s4,000,00o.
The Secretary's letter follows.
"Ir accordance with your request !
nm submitting herewith statements CIV
ing the Treasurys latest estimates or
receipts and expenditures for the fiscal
year 1922 and the fiscal year 1873. with
supporting schedules for each year
showing the details OF the ordinary civil
expendltures and fixed debt charges.
These statements give estimates re-
yised as OF about March 81. 1922. For
the fiscal year 1922 the estimates are
based on the actual results OF the first
nine months. with the Treasury's es-
timafes as to the receipts for the last
quarter OF the year. and as TO expen-
ditures with the latest figures received
by the bureau of the budget from the
several departments and establishments
az to estimated expenditures for the us
cal year.
.The estimates as to the fiscal year
iaa3 are based on the estimates which
appear In the budget submitted In De-
cenber. 1921, after taking into account.
first. an indicated shrinkage in internal
revenue collections OF about $2l5. 100000;
second, an estimated falling off of about
SIS 900 900 in Federal reserve bank fran
chisa tax receipts: third. estimated addi-
tfonal miscellaneous revenue Of about
5000. 900. 900 on account OF payment OF In
terest by the British Government
fourth, estimated collections by the
War Finance Corporation of about SlOo.-
COO COO and fifth, estimated additional
expenditures on account OF the railroads
10 the amount of about $500. 100000,
"The budget for 1923. as submitted TO
Congress. did not include any items Of
expenditure on account OF railroads, but
the Indications now are that. owing to
delayed settlement of matters arising
out OF Federal control and under the
guaranty for the six months following
Federal control. there will be payments
OF about s100.000,0o0 under the Railroad
Administration and S100.000.000 under
the Interstate Commerce Commission
during the fiscal year 1928.
"Thc postponement OF these payments
10 1923 is. OF course. reflected in cor
responding reduction of railroad expen-
ditures for the fiscal year 1922, and
partly ION this account and partly on
account OF the proceeds OF sale OF about
230. 000. 900 OF equipment trust notes OF
carriers the item or railroad cxpendi-
lures In the nclosed statement OF esti-
mated receipts and expenditures for
1922 shows an estimated credit Of about
s5s.o0o 900 as compared with estimated
expenditures or about S337. 100000 when
the budget was submitted.
This shift In the situation as to rail-
road expenditures Is Offset in part by
Withdrawals of about $190,000.000 by
the war Finance Corporation during the
fiscal year. but the net result Is an indi-
Gated surplus OF receipts over expendi-
lures in the fiscal year 1922. with an
-