The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1923-12-08
MELLON URGES
ACTION ON
TAX GUT
secretary Of Treasury Points
to country's Recovery
From War Effects.
BY KENNETH CLARK,
international News servicc.

ny KENNETH CLARK,
international News Service.
Dictated by sound, conservative
business Judgment and principles,
America has virtually completely
recovered indnstriaIly from the Il.
fects OF the world war and the
crisis OF 1891, Secretary Of the
Treasury Andrew w. Mellon de.
clAred yesterday In his3annual report
to Congress.
He coupled with his compre
hensive review Of business condi.
tons q vigorous plea that Congress
act at once TO decrease the heavy
tax burden along lines he already
has indicated and this, he said,
would further aid the return Of
American business to normal. pros,
Consumes FAVD In Last AnalYsis.
High taxation, even IL levied
upon an economic basis. affects the
prosperity Of the country because,
in it, ultimate analysis, the burden
Of all taxes rests only fl part upon
the Individual or properly taxed. "
he declares.
1T - borne BY the ultimate con-
sumner. High taxation means a
high priCs level and high cost OF
living. "a reduction in taxes, there.
fore, results not only In immediate
saving to the individual or prOp-
erty directly affected, but an uIti-
mate saving to Ill the people in the
country
''.The results which now from On
economically uneonnd policy OF
taxation are not az easily visualized
a. the results Of high taxation taken
because the effects are indirect.
These effects are q most insidiOus
menace to q continued prosperity.
The question Of reduction OF
taxation Is one which should have
the serious confederation Of Con,
gress. Before ths period Of the war
taxes a. high e. those now in ef.
feet would have been thought
fantastic and Impossible Of pay
ment.
Sees Hope Tor Farms.
Everywhere there IL prosperity
in American industry, and prospects
for an even further substantial re-
vival Of business In 1924 are par
ticularly bright. Mellon said.
Even in agriculture. hardest hit
by the depression, "all signs go to
show that agriculture is regain
ing its position"
THE farmers az class are be-
low the workers Of the other in
dustries in purchasing power, partly
because farm products always have
formed our chief exports and partly
because the war itself created a.
deficit In certain classes of con-
Sal
the basis Of industrial revival.
"AlI signs, however, go to show
that agriculture is regaining It's
position. IL may be confidently ex-
pected that agriculture will soon
eral prosperity which all desire It
have" Mellon predicted.
Labor In Reward.
Labor has bsen in strong de-
mand and In most localities fully
employed. In the principal manu-
featuring industries the volume OF
production has been the greatest In
our history. The traffic handled
by railroads has surpassed all
records. The activity in building
operations which developed in 1922
has continued at rate which viii
probably make the total expendi-
lures in this line In 1923 greater
than in any previous year." Mellon
reported.
Government Finances.
The financial system Of the gov
eminent never was on more stable
foundations or in better shape,
Mellon said. After an unfavorable
outlook at the beginning. the Treas
ury closed the year with q surplus
Of $300, 067, 400. Total receipts were
| $4,0O7 ,18S, 40, and expenditures, 3d.
697, AIS, 02O. Total receipts for the
year were approximately $768. 100000
greater than originally estimated,
ana expenditures about $685., 100000
less.
War Debts.
Settlement Of the $4,000. 900. 900
war debt Of Great Britain, the
Cuban debt and an agreement for
debt settlement with Finland.
were the chief accomplishments OF
the world war foreign debt COM
mission.
Preliminary negotiations for fund
ing OF debts Of virtually all other
nations have been instituted, though
none Of these has reached a def
mite stage. Outstanding obligations
Of various foreign governments to
the United States aggregate $1O.-
678, sos, 342.13.
France and Italy are the heaviest
debtors.
Activities OF the prohibition en-
forcement bureau were highly salts.
factory, Mellon said. A low record
was made in the withdrawal OF
whiskey for tax payment and con-
sumption. Prohibition officers ar
rested 66,936 persons for violations
of the dry law, resulting in a gain
to the Treasury of $4,S66,056 in
fines and forfeitures.
GROUPS TO RAISE QUOTA =,
FOR CATHEDRAL NAMED