The New York herald., 1922-05-05
Mellon Figures Show How
Harding Has Wrought
Cuts in Taxes.
TARIFF CALLED A RELIEF
Navaly, Scrapping Will Mean
More Reductions, Says Sen
ator at Atlantic City.

Special Dispatch to THE New YoRK HERALD
ATLANTIC CITY. May Am an ardent
tribute to the economy of the Harding
Administration, Senator Joseph S.
Frelinghuysen of New Jersey dis
closed tonight memorandum from
Secretary Mellon which shows that
the estimates for the fiscal year OF
1923 are s3,700, 900, 900, or 81 800, oO0,-
900 less than the expenditures of 1921.
This is reduction of almost one
third.
The Senator was addressing dele
gates of the National Association of
Mutual Savings Banks at their con-
vention dinner at the Ambassador.
Senator Frelinghuysen said that
when Secretary Mellon gave him this
data he added that the organization
of the Bureau of Budget already mad
approved most effective arm of the
Executive in enforcing a reduction In
Government expense. Said Mr.. Fre-
linghuysen:
''These reductions in expenditures
have in turn permitted a material
tightening in the burden of taxation
The revenue act of 1921 has made a
substantial reduction in the tax burden,
running over $s00.0O0,000 for the fiscal
year 1928, as compared with the old
law, and at the same time has provided
for the repeal or reduction of several of
the most vexatious and burdensome
taxes and for the simplification of the
taxes that remain in force
ECONOMY Balances Tax Loss"
"At the outset of the Administration,
ditional taxes might be necessary to
supply deficiencies in the revenues The
determined efforts for economy, how
ever. resulted In striking cuts in ex-
penditures, and this made it possible 10
proceed with the revision of internal
taxes on the basis Of substantial cut
in revenues
1.-THE recovery In the general situa-
tion since the early months of 1921 has
been greater than could have been
hoped for at that time. The country's
financial position has proved sound and
the banking situation has greatly inn
proved.
1.-THE reserve of the Federal Reserve
Banks has increased from little more
than 40 per cent. to over n per cent.
and rediscount rates In the financial
centers have fallen from per cent.
TO AZ per cent. Interest rates generally
are declining and the banking system
of the country is in a position to meet
the legitimate needs of agriculture and
industry.
''The War Finance Corporation has
provided financial relief to cover the
emergency requirements of the farm
ing and live stock industries, and the
whole agricultural situation is being
studied with a view to more perma-
nent measures for relief, especially
mediate length and better facilities for
distribution and marketing
u. s. Drops 32O,27S Workers.
"The number OF persons employed by
the Federal Government in the city of
Washington was reduced from $4,000
to 73000 Throughout the entire nation
320,27S persons were dropped from the
Government payrolls.
The total expenses of tho Government
have been reduced from $4,000, 0cO.0 900 in
1921, $4,000 900 600 i'm 1922 TO So 500 900 900 for
the next fiscal year.
Excepting 500 10000 for expenses
growing out of the war. such as in
terest on the national debt, payment on
the sinking fund and $500, 000, 900 for the
care of our needy veterans of the con-
flict, and an increase of $50 10000 in
the cost of running the Post office. due
to the natural increase OF business. the
cost OF Government has been brought
down to approximately what It was be-
fore We entered the war in 1917.
"A revenue law has been enacted
which removes many burdens and
nuisances and reduces the tax bill OF
the country by $1s.00O,O0O for the
present year.
"A tariff law has been passed by,
the House and is about to be passed by
the Senate. which will protect our wage
earners and our manufacturers from an
inundation of cheaper goods made
where living standards are not so high
and which will vastly stimulate business
and income and bank deposits
by the enactment of the budget sys-
tenn billion dollars was saved and now
Congress Is pairing the estimates by
another half billion. Through the
budget and through committees of Con-
gress the Government bureaus and de-
partments are being reorganized to pre-.
vent overlapping of authority and ex-
penditure
by the Conference on Limitation OF
Armament called by the President there
has been assured saving to the tax
payers Of the United States alone of
five billions of dollars during the next
ten years