Evening star., 1923-02-10
VIEWS OF ROGER w. BABsoN.

Special Dispatch to The Star.
WELLESLEY HILLS. Mass, Feb
ruary 9.-"When will taxes be re-
duced"? The problem is uppermost
in the mind of the American busi-
ness man and investor as he figures
his report for 1922. To get the an
| swer Roger w. Babson, statistician,
has spent a week in Washington
| studying the tax situation. His first
hand findings and unbiased report
are of vital interest.
Future taxes" says Mr.. Babson,
depend. in part, upon future expendi-
! lures. The figures for the past year
on this score, at least, are very hope
full. Whatever criticism may be made
. of the present administration 1t must
| be admitted that it has exerted a
continuous effort to reduce expedi-
| lures, An honest attempt Is being
made to introduce and operate bud
! get system. At the conference Of bureau
| chiefs, held recently at the Contin-
entail Memorial Hall, some 600 men
met to affect further economy in the
operation of the government business.
Where Huge Sums Go.
FIXED charges interest rates and
previous obligations. of course, can
not be changed. and in spite OF the
splendid work done to cut down cur
rent expenditures. the expenses OF
total Of .$3.795, ,302, ,499.S0. Nearly one
b lion of this amount was paid out
as interest on the public debts. such
as liberty bonds and other outstand-
s253.s0O. 900 was used in pensions to
soldiers, or their dependents of the
! war Of 1912. Mexican war. Indian
wars. Civil war and SPANS lsh- -Ameri-
can war. while s45o.000,o0 was paid
for compensations, care and training
of veterans of the world war, APP
proximately $4o5. 200. 900 went for the
Army and S475.000.0O0 for the Navy.
About so per cent of our total eX-
pcnditures go to the payment OF in
| terest, sinking funds, pensions and
| the relief to veterans.
| During the fiscal year of 1922,
/ the government collected $4.1os.l04.-
150.a4. Present prospects, however.
indicate that no such amount VIII be
collected in 1923 The excess profit
tax has been removed and general
/ business is not as prosperous. and
! therefore will not yield as much in
! taxes as in previous years. To meet
this situation, President Harding has
earnestly requested that expenditures
be cut by $92,00O.000 more.
| Sees No Cause for Alarm.
! eff we look at the United States
government as we would a corpora
! ton there Is no cause for alarm. EX-
penses have increased. to be sure,
! but expenses lave increased in all
businesses On January /, 1923. We
| had in the United States, in gold
f, s3,933.475.615, about 4o per cent OF
| all the gold in the world. OF this,
over three and one-quarter billion
IS held in the treasury. mostly in the
l.
ledgers we find that 100000 tax
tribute-l s2,o6s.12s192.6S in 1922
While only 1856, ,443,3S7.lS was re-
ceived from customs and duties.
] Further study Indicates that the
problem during the next few years
{. is not one of trying to decrease the
| pre1ent budget, but rather of trying
/ to hold it where it is and keep ii
I from going much higher.
i Unless a miracle happens, some
! sort Of bonus bill will be passed in
1924. If not passed with the Presi-
| dents consent, 1t will probably be
passed over his veto. This will call
for huge additional sum of money
| Then there Is a tremendous road
| building program, the proposed ma
| tionalization of coal mines and the
| demands upon the Treasury by the
farmer bloc.
! Ways to Raise Revenues.
when I talked with f1nanciers re-
1 garding possible measures OF taxa
| tion to meet these additional ex-
penditures and proposed increase in
| our national budget. the suggestions
| were as follows: % A sales tax
! (2) a tax on light beer and wines
CD further customs and internal
revenues. tD collecting from Europe
| the $4,000, 100000 owed : us and
| (5) the restoration of the excess
profits tax.
! "The keener students of taxes al
! most universally recommend the
/ sales tax, but politically there seems
! to be little chance of the new Con-
! gress putting it through. A tax on
] light beers and wines at the present
+, time Is certainly out Of the question
! Both custom and internal revenue taxes
| are as high as the public can stand
! Hence, by the process OF elimination
the political leaders strenuously re-
| fuse to cancel the European debt for
| fear of the re-enactment Of the ex-
cess profits tax.
Their fear in this regard is well
! founded. not from a purely selfish
point Of view on the. business man
who must pay such tax, but be-
cause of its effect on the prosperity