The Birmingham age-herald., 1922-04-23

tA0 ROtiLlCAl Ab- surance, deficit dissolves itself Into thin air.
 Congress leaders somewhat reIuct- antly admit that Secretary Mellon's prophecies fin the past generally have come true. The Secretary has found 1t necessary several times to breast the current of popular opin- ion and tell some very plain if un- pleasant truths to tho lawmakers as to the condition of the national finances. The Secretary has been die rect and businesslike always. He has never forgotten his early training which taught him that two and two made four, and being without poli:i- cal guile he has told both House and Senate that if Congress wants to spend certain moneys it must raise certain other moneys to pay the bills as the bills fall due. Congress has been in the mood of saying, Charge it" of late, and letting the evil day that the collector comes around take care of itseh.
 Optimistic as to Budget
 So Congress today Is optimistic as to the national budget and feels there will be no difficulty in meet ing its bills when they become due. Mir. Mellon would like to have the AAS0AHO III oiBnt DeIOFc tne money IS spent or the obligations contracted. Congress feels that it Is time enough to worry about a deficit when 1t ar- rives and not to anticipate financial troubles q few months before elec- tion.
 Income tax returns under the new law are disappointing. Even Con- gross will admit that But Congress insists that the returns for 1929 will show big increase over those of 1921, and therefore the deficit for 1923 will not be so great as the books seem to show at this time
 Secretary Mellon. on the other hand, Is fearful lest the half bil- lion dollar deficit be increased to three-quarters of . billion. In his sible soldier bonus legislation. He reckoned not on a ship subsidy law going through, and he failed to call cuiate the money that may be ap- propriated under rivers and har- bors bill
 Congress Is not worrying at this time-because 1t feels that business Is on the upgrade all over the country. Better business means more tax money for the government. Nineteen twenty-one admittedly was "lean" year, but Congress confidently be- lseves the depression is over and that normalcy is on the way.
 It has been perfectly apparent to everyone ever since the first income tax returns under the new law were announced, that big budget deficit was in sight. There was no expecta- ttop however, of the enormous surn mentioned in MT. Mellons statement of day or two ago.
 Response Was Quick
 Congress was quick to hear from that statement. Word spread throughout the country that new taxes must be levied and the people. breathing little easier for the first time since the war. began to have a bowed-down feeling. Also they had an impulse to write to senators and representatives. The result has been flood of messages to the capitol, with not few to the White House. if 1t was true that new taxes were to be imposed forthwith. just as busi- ness was beginning to shake off the shackles of depression.
 To man, Congress has replied that there will be no new taxes this year. If there are any disagreeable financial tasks to face next year the next Congress can deal with them The congressional elections will be over by then and something may have turned up in the meantime to reduce rather than to increase the unwelcome and undesirable deficit.
 The country can rest assured that It's federal taxes for 1922 are fixed. What may-happen in 1923 remains to be seen. Advocates of the sales tax are hoping that by that time they may have overcome some of the objections thus far to that revolu- tionary change in the national tax system. The republicans would like to establish sales tax before the, next presidential election.