The Birmingham age-herald., 1924-06-09
TREASURY FUND IS INSUFFICIENT
 TO REPAY TAXES Million Who Paid In Full / Apparently Are Out Of Luck NO APPROPRIATION
 MADE BY SENATE Internal Revenue Bureau Is Seeking Way Out
 Of Difficulty
By THOMAS L. STOKES By Leased Wire to The Age.Herald)


 WASHINGTON, June S.-When the Senate left here in hurry, failing to act on several matters because of a blockade from irate members, it endan- gered the immediate tax cut this year as far as a million taxpayers are con- cerned, as well as holding up the bonus and killing other desired legislation. A special session of Congress may be necessary to unravel the tangle, it is becoming increasingly evident
 The tax complication, the most seri- ous, is giving treasury officials much concern, as they have come to realize its significance. Secretary Mellon will take it up with heads of the internal revenue bureau Monday, in an effort to find some way out.
 It was brought about by failure of the Senate to pass the deficiency apprO- priation bill. This measure contained $16,000,000 for the refund of 25 per cent, allowed hy the new law, to mil lion taxpayers who paid all their tax in a lump March 15. It will have no effect on immediate cuts for other tax payers.
 Million Out Of Luck
 ''It seems that these million taxpayers are out of luck until Congress provides this appropriation, Charles R. Nash, deputy commissioner of internal reve- nue, said today.
 The treasury, he said, cannot pay this money out without authority from Congress. It has no power to make refunds without the authority of Con gress, he explained, nor is there any emergency power vested in the Secre- tary of the Treasury or other officials.
 In studying the difficulty, Nash has found one possible way out, which will be considered Monday when the matter is taken up by the secretary and internal revenue officials. This is to transfer the $12,OO0,000 authorized by Congress for refunds for taxes collected, illegally or erroneously to this purpose.
 Up To Comptroller
 Whether this can De done is not known. Nash said the decision would be up sto the Comptroller General. J. tR. McCarl, who holds this office, is a stickIer for the law, and may hot allow the transfer. Even if he does, this sum will be $4,O00,OO0 shy of the amount necessary.
 Nash is of the opinion that this can not be done, and that the refund would have to await action by Congress. Un1 less a special session is called, it will have to await the return of Congress in December.
 This failure will not endanger the cut this year as far as other taxpayers are concerned, Nash explained. They can reduce their payments according to the law
 Because, of this tangle and others, of- ficials regard an extra session as neces- sary. Outside of the tax complica- tion. there are numbers of other omis- sions, chief of which is the failure to provide money for the bonus.
 Included Bonus Payment
 In the deficiency bill was $132 000,- 900 for first payment on the bonus and for paying the salaries of the 4,O00 clerks who will administer the law. While the money for the first payment can be voted in December, as payments will not be made until next year, all the work of preparing for the payment will be held up because of failure to provide for the clerical staff.
 Unless some way out can be found, the tremendous job of administering the bonus will be held up, which will delay payments to ex-service men. Officials are in a maze. They say there is no way to pay the clerks without author ity from Congress. Secretary of War Weeks will see the President next week to discusse the situation.
 One of the most disappointing re- suits of the last-minute blockade in the Senate to the administration was the failure of the naval increase bill to get through. This measure, pro- viding eight new scout cruisers, six river gunboats, and the reconditioning of six first line battleships, was de- signed to bring the navy up to the ratio accorded under the naval limitations treaty It was frequently pointed out in the discussion of this measure that the United States must have it's navy up to the notch if it expected to exert commanding influence in a future disarmament conference.
 Besides the tax and bonus provisions in the deficiency bill, there were numer- ous other appropriations whose lack will cripple various branches of the gov ernment service, and which have caused department heads to puzzle.