The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1923-12-07
MELLON TELLS
OF HUGE CUT
IN US. DEBT
Reduced Over $6OO,O00,O0O in
Last Year, He Says in His
Report
DESCRIBES METHODS
Government Firmly Estab.
lished on Sound Financial
Basis, He Says

Washington, Dec. 5.-Secretary
Mellon, in his annual report trans
mitted to Congress today. described
treasury operations under which the
nations debt has been reduced
$613,674.343 in tho fiscal year
1893. and again urged sharp reduc-
tion in taxation based on rigid econ
omy and barring authorizations for
new and unexpected expenditures" ;"
The report contained a copy Of Mr..
Melons letter to Acting Chairman
Green. Of the House Ways and Means
committee. in which the secretary
said - soldiers bonus would post
ponc tax reduction not for one but
for many Years to come"
To the usual review of Official
activities under his direction Mr..
Mellon attached additional argument
for the general reduction in income
taxes which he has urged. He par
ticularly stressed the advantage
which he has predicted would. come
from cutting the surtax rates upon
large incomes 10 = maximum of rs
per cent, on the ground that it would
actually increase government income.
as we'll as indirectly benefit the pub
lie at large by reducing burdens OH
productive operation
Firmly Established.
The government. "frmly establish
ed on the basis Of balancing its bud
get each year." Mr.. Mellcn said.
brought the national debt. once at a
figure of over, $26, ,O00, 100000, down
to a total of $22 2,OS2 ,2O9 900 on Octo-
Der 81. The record. he said, was one
brought about "only by the most
rigid economy and the application Of
business principles to the govern
ments finance" On the present basis
Of taxation and expenditure, he cited
an estimated treasury surplus next
July Of about 1928. 100000, and q
possible surplus in the year after Of
$395, ,OOO, ,OO6.
High taxation" the report con-
tinued. "even if levied upon an eco
nomic basis. affects the prosperity
Of the country, because in its ulti-
mate analysis tho burden of all taxes
rests only in part upon the individ-
ual ofaproperty taxed. It is borne
by the ultimate consumer Hight
taxation means a high price level
and high cost of living 1t can safe
ly be said that reduction in the in
come tax reduces expenses not only
Of the 100000 income tax payers
but of the, entire 1l0,000.00O people
Of the United States"
Reduction in Surtax.
As to the reduction in the surta1
rate, Mr.. Mellon said that the history
Of taxation throughout the world in
dicated that "means have always
been found by the ingenuity Of the
citizens to avoid taxes inherently ex-
cessive." 1t was significant, he said,
that the large incomes reported for
taxation were increased in number
each year, those over 100000 being
248 in 1921, as compared with 1896
the year before The estates of the
wealthy, he pointed out, were flowing
into tax exempt securities. The
treasury actuary, he continued. esti-
mated that the reduction of the sur
tax to the rs per cent maximum,
against a present maximum ranging
up to 50 per cent, would actually in
crease by 1926 the amounts which
the government receives, the lesser
rate being more than compensated
for by the additional volume Of tax
paid.
Mr.. Mellon advocated also the re-
duction of federal taxation on es-
tates after death, on the ground that
this tax was taken mot out of in
come but out Of capital" with cumu-
lative confscatory effect.
Notes Improvement.
To general business aspects Mr.
Mellon directed the comment that inn
provement from the 1924 depression
had been noted for year. Sufficient
credit at reasonable rates had been
available through banks, and ne
concluded that present activity pre-
sented the appearance Of being
"sound and stable" The failure OF
agricultural sections to share in the
betterment. however, was noted.
Federal land banks, the Secretary
said. had loaned $214,712,O00 during
the year on land mortgages. Their
total Of loans outstanding was placed
at $789,703,704, while farm land
associations. through which their
business is primarily conducted. had
increased in number during the
fiscal year from 1883 to 4,53S.
Taking up the liquor question Mr..
Mellon said that the nation which
formerly had consumed 130,0OQbO0O
gallons Of whiskey year, had now
in bonded warehouses only 35,OOO,O ,OOO
gallons altogether. Withdrawal from
the supply during the past year waa
only 100000 gallons. The Treasury's
request for a 100000 approp1R
tion to increase the. Coast Guard
the Secretary said, might assist to
"cut down to minimum the opera.
tion Of the rum smugglers who seek
to replace the vanished home product
with the spirits Of other lands.
Public building needs, in the coun-
try at large and in, Washington, the
report. said, required ~ carefully
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