The New York herald., 1922-09-25
FURTHER TAXATION
CALLED CALAMITY
Under Secretary Gilbert Warns
Against Expenditures Ex-
ceeding Income.
TRYING TO COVER DEFICIT
Treasury Official Says Every
Effort Is Being Made to
Eliminate 1t.
TRYING TO COVER DEFICIT

Special Dispatch to THE NEW YORK HERALD.
New York Herald Bureau.
Washington. ID. G.. sept "a.
To impose additional taxes on the
American people TO meet the estimated
dehcit of S67e 100000 facing the Treas
ury for the current fiscal year would be
nothing less than a national calamity
according to Under Secretary of the
Treasury Gilbert
In review of the country's finances
made for the Nations Business within a
few days after the vetoing of the soldier
bonus by the President and the sustain
ing of the veto by the Senate. Mr.. Gill
bert issues the warning that while addi-
tional taxes will spell disaster there is
no other course left, "if there is per-
sistencc in any program of expenditures
beyond the limits OF the Government s
income
Until the end OF this fiscal year every
effort OF the Administration, the Under
Secretary said, will be directed to re-
ducing of the deficit. looking ii possible
to its complete elimination.
"The Treasury" he said, may reason
ably expect to make up the deficit or
at least a part of it through increased
revenues on securities and surplus prop
reductions OF expenditures.
''On August 81. 1922. the total gross
debt stood at $23,O42, ,000, 900. a reduc-
ton since the peak of about s3.354 ,000,-
600. From now on the liquidation of
debt will have to be accomplished largely
from surplus revenue receipts, through
the operation of the sinking fund and
other similar accounts. The Treasury
balance has already been reduced to
about as low figure as Is consistent
with the proper conduct of the Govern
ment's business. and there is little hope
of being able to accomplish further debt
reduction by cutting down the working
balance in depositaries.
Thoughtful people, ! believe. are
coming more and more to realize that
a sound policy. orderly refnancing and
gradual liquidation of the public debt
is fundamental not only to the economic
development of the country, but also tc
its preparedness for future emergencies
and probably never before has the world
1 furnished so many examples of its i'm
portance.
THE budgets and currencies of man,
\ of the countries of Europe are still il
chaos and this has led TO corresponding
/ disturbance in international financial re
| lations and instability in the foreign ea
changes. This in turn has proved on,
OF the greatest obstacles to the re
establishment of normal relationships
and rehabilitation of international trade
1T is becoming more and more recog
nized that the best hope for the gradua
restoration of business and industry il
| Europe lies not only In the maintenance
of sound fiscal conditions in the Unite,
States but also in the gradual adoption
of Europe. many of which still persist II
| policies OF budgetary deficits and cur
rency initiation.
With the financial markets here sbl,
to absorb new issues Of securities, pi
/ Reasonable terms the countries of Flu
rope. which are willing and able to pu
their own finances in order. are grad
ually finding themselves in a position
TO get the necessary capital for their re
habilitation through the sale of obliga
tions to investors in this country.