Evening star., 1924-05-12
SM00T SEES HUGE
DEBIT FACING NATION
Warns President and Secretary
Mellon Congress Situation
Is Serious.
TOO MANY MONEY BILLS
$476, 900, 900 Behind With Outlays
and Revenue Loss Likely.

Gloomy pictures of the govern
ment's financial state should the tax
bill passed Saturday by the Senate
and numerous pending appropriation
bills become law were painted for
President Coolidge and Secretary
Mellon today by Chairman Smoot of
the Senate finance committee.
The senator told the President the
situation was serious"
There will be a national deficit of
more than $476,000,000 should all of
the money bills passed or now under
consideration by Congress become
law, it was explained.
Revenue Loss Included.
| The measures in question are those
TO which the President has so frequent
~ made known his opposition, holding
that they are class legislation and
entail an unwarranted expense of
| public moneys. The startling total
| given by Senator Smoot also includes
the revenue loss to the government
| Whlch would follow the enactment of
the simmons tax reduction bill in it's
!
about s160,000.000. During his con-
ference Senator Smoot detailed the
various money bills TO the President
! and Treasury head, and furnished
! hgures showing the amount of money
carried by each. He said afterward
that his object in doing this was to
give them a clear picture of the
financial problem Congress is Great
ing in going beyond the estimates
submitted by the bureau of the
! budget.
Brig. Gen. Lord, director of the
budget, who conferred later with the
fresident regarding the bonus bill
which the latter now has before him
| While discussing Senator Sruoot'a
| nEureS on his way out of the White
| aouse said that he agreed with them
fuIly and that roughly estimating the
! amount he doubted if the Utah SEN
| ator made the total deficit as 1arge
! as It actually Will be in the event
| that the bills in question are finally
| enacted.
Senator smoot said after seeing
Ilesldent coolidge that the joint
| congressional committee on reorgani-
zation of the executive denartmants
OF which he is a member has nrac1
| tically completed a draft of a hill
which has the unanimous apnrovaI
OF tne committee. He doubted
orou az a, II TINS legislation will have
an opportunity to be reported ont
before adjournment in June.
Besides citing the revenue RI he
| ioSt as result of the tax reduction
phi as 1t stands at present and the
txeElsIatlon providing extension OF
| activities, Senator Smoot mentioned
the various independent bills, includ-
ing the bonus. the Bursum pension
bill. increased postal pay. reclassifi-
reau and District of Columbia sur
plus measures.
En- Route to Conference.
The revenue bill, changed consider
ably by the Senate to conform to the
| Democratic program, was en- route
to conference today by way of the
House. Little delay in registering
formal disagreement to the changes
was in prospect in the House, which
passed the measure in accordance
with a program sponsored by the
! Republican organization leaders, and
| the next stage of the battle for party
supremacy is expected to be under
way in conference before the second
| half of the week begins.
| The main provisions of the bill are
| in dispute between the two branches
! of Congress, and not less than a week
| is expected TO be consumed by the
conferees in working out an agree
! ment Republican leaders are count
! ing on the House for rejection of the
undistributed profits corporation tax
and full publicity of tax returns,
| written into the bill by a Democratic
| Republican inSurgent coalition in the
| Senate.
May Ask Instructions.
| 1t is considered likely the House
| conferees will ask for the instruc-
| tions on the corporation tax, as no
| change in the presented law was act
| ed upon by that body.
The House did turn down, however,
| a proposal for full publicity of re-
| turns. Only slight differences will
confront the conferees on the income
| tax schedule. but they are such as to
| invite a consent to determine which
party label it shall bear.