The daily times., 1922-01-28
BONUS IS
PROMISING A BIC
TREASURY DEBT
SURE TO PASS
Congressmen Are Going to In
sure Their Return to Wash
ington by Passing the Pop
ualr Soldier Bill, But the Re-
lief from Taxation is Going
Glirnmering.
(By David LaWrence.)
Copyright 1922 by The Daily

(By David Lawrence.)
Copyright 1922 by The Daily
Times.)
Washington, jan. 27.-The Gov
eminent of the United States faces
the biggest deficit in its history if the
soldier bonus bills soon to be passed
by Congress are to become law.
The determination of congression
al leaders to pass the bonus is ex-
pressed in the face of White House
and Treasury Department opposition
! so that only a presidential veto can
save the situation.
But the painful facts which now
are coming out in connection with
the bonus agitation is that the gov
ernment will have a deficit for 1922
and 1923 of approximately 100000
All the hue and cry about economy
has only been of avail in preventing
i the deficit from becoming larger but
the truth is the congressman up for
reelection next fall will have to
chose between the number of votes
expected to be gained by passing
bonus bill and the number of votes
certain to be lost through the pro-
| tests Of the large army of taxpayers
whose burdens will prove to be as
irksome as in the years Immediately
following the war. The relief from
taxation which it had been confident
ly hoped might come in the next two
years is vanishing into the air.
Treasury officials make no effort to
conceal the truth much as the MEM
bers of Congress responsible for the
present fiscal situation may be in
clined to gloss it over. So long as
1T was still possible to pare down
expenditures, the Treasury held out
hope that the budgets for 1922 and
1923 might be balanced and the de-
fcits wiped out but with a big bonus
bill staring the Treasury in the face,
/ Secretary Mellon has come out with
Ia statement of the situation which is
Icausing the more thoughtful mem
bers Of Congress much uneasiness.
| For awhile-and when President
Harding recently submitted the bud
get to congress was uncer-
tainty whether the deficits would
really materia1ize. Mr.. Harding ex-
icused the estimated deficit by saying
II hot ic n.
able when authorizations of expendi-
tture are being enacted during the
process of budget closing but ways
are provided, for relatively easy ad-
ljustment without added taxation"
/ Now Secretary Mellon discloses
the fact that the budget estimates
I for the year 1922 are Substantially
correct" and while he knows Con-
Igress can avoid the deficits it it
wishes, he flaty declares $3OO,OO0,-
900 must be cut out of the intended
: expenditures in order to balance the
budget. On top of that Mr.. Mellon
Iconfirms what has been rumored for
some time that a heavy shrinkage in
} tax receipts is imminent and that the
estimated deficit may grow still larg-
er when the tax returns are all in. He
holds the business depression as part
ly responsible and insists that under
the circumstances new or extraordin-
, ary expenditures are not to be
thought of for a minute.
!, The $300,0OO,00O deficit is made
up in this way:
, The budget deficit for 1922
!. amounts to- $24,0OO,000 and for
tt1s23 over $167, 100000 and these
) Figures make no allowance for the
!, $50, 100000 requested by the Ship
: lping Board to meet claims 100000
t relief to Russia, $5,000,000 to be
, tpaid as the first installment to Colon
:. bia for the Roosevelt policy in Pana-
ma in 1901, and a possible $50.eee,
1000 for additional pay to government
(C0ntihued on PaesvShs1