Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-12-08

that reduction in the income tax re-
duces expenses not only of the 7.OOO,-
900 income tax payers but of the en-
tire 11O,OOO,OOO people of the United
States"
AS to the reduction in the surtax
rate, Mr.. Mellon said that the his
tory of taxation throughout the
world indicated that means have al
ways been found by the ingenuity
of the citizens to avoid taxes in
herently excessive" 1t was signifi-
cant. he said, that the large incomes
reported for taxation were decreasing
in number each year. those over
$500, 900 being 246 in 1921 as compar-
ed with 395 the year before. The
estates Of the wealthy, he pointed
out, were flowing into tax exempt
securities. The Treasury actuary, he
continued, estimated that the re-
duction of the surtaX to the rs per
cent maximum, against a present
maximum ranging up to SO per cent,
would actually increase by 1925 the
amounts which the government re-
ceives, the lesser rate being more
than compensated for by the addi-
tional volume of tax paid.
Mr.. Mellon advocated also the re-
duCtion Of federal taxation on estates
after death, on the ground that this
tax was taken not out of income
but out Of capital" with cumulative
contiscatory effect.
To general business aspects Mr..
Mellon directed the comment that
improvement from the 1921 depres-
sion had been noted for year. Suf-
ficient credit at reasonable rates had
been available through banks, and
he concluded that present activity
presented 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 $214,712,000 during
the year on land mortgages. Their
total of loans outstanding was placed
at $7S9,703,104, while farm land asso-
Citations, through which their bust
ness is primarily conducted, had in
creased in number during the fiscal
year from 4,3S8 to 4,53S.
Taking up the liquor question, Mr..
Mellon said that the nation which
formerly had consumed 13o,000,000
gallons of whiskey a year, had now
in bonded warehouses only 100000
gallons altogether. Withdrawal from
the supply during the past year was
only 100000 gallons. The Treasury's
request for a s2S,000,000 appropria-
ton to increase the Coast Guard,
the Secretary said, might assist to
"cut down to a minimum" the opera
ton 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 "a carefully
considered building program. THE
postponement of construction because
of recent high costs in erection en-
terprises could not always be con-
tinued. added. with annual federal
expenditures for retails amounting to
$20.000,000 and increasing. Construc-
ton planning that would eliminate
any tendency to distribute bulldogs
on political basis was urged.
The recently established system of
pensions for retirement of federal
civil service employees was described
as showing sufficient cash reserve
to Justify an increase in the rates
paid to the dependents. The limit
ing Of retirement benefit to persons
over 20, likewise. Mr.. Mellon said.
was unnecessary. and he advocated
lowering it to 6s years.