The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1922-05-10
WILL SHOW REAL
SURPLUS THIS YEAR
But No Escape From $780,
100000 Deficit In 1923 Is
Discovered By Mellon
ALL AVAILABLE
REVENUE FIGURED

This Years Surplus Is Secured by Post
pOning Payment of S1O0,OOO,OO0 To
Observation-Disclosures Do Not Care
How 1t Is Figured So Long As They
Can Boost 1t.
By DAVID LAWRENCE.
Especial Dispatch to The RefOrmer.)
Copyright 1922.
WASHINGTON, May 10.-Secretary
Mellon sees no immediate prospect of
lowering the estimated deficit in govern
ment finances of 1923 of approximately
S340,OOOOOO and gives the impression of
fear that the deficit may be increased.
The secretary told this correspondent
that his recent estimate was based on
every available item of revenue that
could be connted upon including the pos
sible payment of interest by the British
government of its war debt.
The inquiry was prompted by rumOrs
of new sources of revenue or increased
taxation which might be counted upon to
wipe out the 1923 deficit, but the treas
ury anticipates none of these. This
means that the statement just issued by
Charles G. Dawes, director of the budget,
about which general debate has been
precipitated in congress. embraces only
the fiscal year of 1922. In a nutshell,
1922 will show a surplus of S4J,OO0,OOO
or thereabOuts but 1923 will show a
deficit which some officials think may
pass the half billion dollar mark.
The question is naturally asked why the
government bookkeepers prefer surplus
this year and a big deficit next year
The answer is to be found in the demand
of political members of congress for am
munitiOn to use in the autumn cam
paigns. They say frankly that 1923 can
take care of itself-that something might
happen to better the situation-but that
1922 is to be considered as a unit because
the people will vote on the past record
rather than future possibilities.
Only Theoretical Surplus.
Considering 1922 as a unit it is found
that a surplus of S4j,000.0000 was OBJ
tanned by postpOning payment of $780,,
600 900 (which must be paid in cOnnec-
ton with government control of railroads,
the settlement of which has been de-
layed. If the &100O00,000 had been paid
this year there would have been a deficit
for 1922. The surplus, therefore, is acct
dental and trea. Try officials who are not
interested in the politics of the situation
reluctantly admit that the surplus is
purely theoretical
They do not take to the position of
cOntradicting congressional statements
but they cannot at the same time revise
their previous declarations in which the
figures of this year and next year were
given to the public
When it comes down to estimates of
the saving. no official cares to comment on
the practice which has grown up of re-
garding an estimated expenditure as in
the same class as an actual expenditure
Some estimates of government saving
ran as high as billion dollars, il being
cOntended that the executive depart
mentS wanted to spend larger sums than
congress would authorize Many bust
ness man counts as saved" money
which he might have spent, but on his
books there is no actual money showing
the economy. There are two schools of
thought here. Some believe a reduction
OF estimated expenses can be and should
be treated as an economy. Others insist
that 1t is only paper saving and is not
reflected in any reduced taxation for the
rates this year are not appreciably lower
than they were last year so that if bill
lion dollars was saved the taxpayers did
not feel it and that the test of saving will
be in the reduced taxation rather than in
the bookkeeping
Will Claim Achievement.
Members of congress who are compelled
to fling figures at the public this autumn
viii use Director Dawes'S statement of
1922 finances and point to it as an
achievement. 1t shows a surplus of
S45,OOO,OOO What more can be asked
As for 1923, Mr.. Dawes made no refer