Evening star., 1923-06-27

rate would have required him to pay
$96. and II he had been q British cttf-
lien. instead of giving up the $68
which he paid to Uncle Sam, he would
The same man. with an income OF
$4,000, would have paid $456 income
tax in the United States and S1,12S.32
In England.
Reduction Planned.
The great burden of the war was.
Of course. imposed on the national
government. The Department OF the
Treasury states that in 1917 the fed
eral governments revenues were ST.
44.000.000; in 1918 they were $685.
100000: in 1919 they were s4.103.-
100000 In 1920 they were $5.737,000,-
900; and in 1921 they were $4,902.-
100000. For 1922 the total dropped to
$3.565. 100000. and for 1923 It is esti-
mated at $3.753.000.000 Assuming
continuation of the present basis Of
federal taxation, the receipts for 1924
are calculated at SS.63S,000,0 900. and
for 1925 at $3.4S6.000.o00. !,
Not all Of this revenue Is raised
estimates indicate that in 1923 only
$2,s25. 900. 900 and in 1924. $2.850. .000. 900
Will be produced by direct taxation; ;
the remainder will come from various
miscellaneous receipts OF the govern
ment. You will. am sure. be inter-
ested in the Treasury's statement
that whereas in 1914 the per capita
cost to all the people OF the federal
government was $6.97, that in 1918 1t
reached S36.64 and in 1919, $37.91. 1t
might reasonably have been pre-
sumed that with the war now long
past taxes would have begun to fall
off. but the statistics show the con-
trary. Instead of reduction, taxes
for the fiscal year 1920 rose to $53.78
per capita. which was the peak of
Nl,a 20
only fell to s45.22. But In 1923 they
will be s2s.29, or considerably less
than half as much as in 1920. Fig
ures, especially the figures which
represent such an authority as the
Treasury Department. are conclusive
arguments. These figures show that
for two years after the war ended
federal taxes continued much higher
than at the height Of the struggle.
They show that in the first two years
of peace the cost Of government was
still continuing above the 1918 level.
they have been reduced more than
one-half. 1t Is a record of business
administration to which the party
now in control of the administration
feels justified in referring with with
no small measure of satisfaction.
Debt Is Reduced.
have observed that the cost Of the
war 10 our was aTOunu
SAC. 200. 100000. After paying a gen.
erous share. about rs per cent, from
current revenues collected while the
war was in progress, We still had to
borrow enormously. At its highest
point. on August 81. 1919, the national
debt was S26.596. 100000 / know you
will be interested to be told that
from that day, August 81, 1919. to
June 80. 1928, we have reduced II to
$22. 400. 900. .000--a reduction of consid-
erably more than a billion dollars a
year. Moreover, we are now work
ing under a program which involves
extinguishing half billion of the
debt each year. No other country in
the world has been able to make such
q record.
within the past year settled the
British war debt to our government,
arranged for its funding and its
gradual extinction over a long period
OF years. In recognition of the not
able service of Secretary Mellon, his
associates at the Treasury and the
members of the debt funding commits
sion and the American ambassador to
Great Britain. 1 wish to say that this
settlement of the British debt has
been acclaimed all over the world as
one of the most notable and success
full fiscal accomplishments ever re-
corded. Not only does it insure that
the regular quarterly payments which
the British government will make to
our Treasury will correspondingly re-
lieve the burden upon American tax
payers. but the more important fact.
in a time of widespread uncertainty
and misgiving throughout the world
of business everywhere. that these
two great governments could get to-
gether and arrange such a settlement
has been one of the most reassuring
events since the armistice.
R.nax~ad CoraH.uc.
There had been too much talk of
possible cancellations or regulations
of the war debt. Such a program
would have wrecked the entire struc-
ture of business faith and of conf
dence in the obligations of govern
ments throughout the world. There
was need, pressing and urgent need,
for such sign Of confidence, as
surance, and faith in the future as
this settlement furnished. When the
British and American governments
united in this pledge that their obli-
cations would be met to the last shill-
ing and the last dollar. there was
renewed financial confidence in the