Evening star., 1925-12-09
WaVs and Means Committee
Went Too Far in SIashing
Taxes, He Frankly States
in Presenting Estimate.
URGES FURTHER CUTS
AND STRICT ECONOMY
Praises Non-Partisan Manner IN
Which Revenue Bill Has Been
Handled by House Body-Fore-
sees Limit for Trimming of
S33O,3O7,s94.56 in 1927.
EY G.. GOULD LINCOLN.

S33O.3O7.S S94.56 in 1927.
BY G.. GOULD LINCOLN.
President Coolidge in his message
transmitting the budget to Congress to-
dav nicturcs the outlook for the United
States i'll 1920 and 1927 as most
iavorablc' He backs up his state
ment with solid and substantial figures.
He estimates the surplus III the Treas
,.rv at the close OF the fiscal year 1920
at more than S2o0.OO0000 and the sur
plus al the close of the fiscal year 1927
az more than S350.000000
With this happy situation III mind.
the President recommends a further
reduction in taxation. At the same
time he urges strict adherence to
economy i'll Government cXpendl-
lures and administration.
The President says frankly that he
considers the House ways and means
committee may have gone too far IN
slashing taxes and raising cXemp
tions i'll the revenue bill it has al
ready prepared He adds. however.
his praise for the nonpartisan man
ncr III which the bill has been han
died. and says that with a contin-
uancc OF economy in the Federal
service and stimulation OF business
which undouItedly will result from
tax reduction perhaps 1t will be posi-
bic to make reductions III taxes up TO
the limit OF the prospective surplus
for 1927. which is $3.50. '07 .S94.56.
The Budgets Total.
The budget. as transmitted by the
President. estimates the total eXpendi-
lures for the fiscal year ending June
so. 1927. at S3.494 pc. .50S.+4.
The estimated receipts by the Fed
eral Government for the fiscal year
1927 arc So. S24.530.2O3
If these estimates prove correct, the
surplus at the close of the fiscal year
1927 will be $500, ,307 ,S94.56.
These estimates are eXlusive of the
postal revenues and the postal eXpen-
dtures paid therefrom.
The President shows that the esti-
mated receipts for the fiscal year 1926,
the present fiscal year. are S3.S80.116,-
9i9 and the estimated expenditures
are S3.61S. S.675.1S6, leaving d surplus
for the year of 1852 .041,756.
The actual receipts and eXpendi-
lures for the fiscal year 1925, which
closed last June. were: Receipts,
81 7Sn14S ,624 A. the expenditures
S3 1929 .643. 1862, and the surplus
r1inistration promptly applied to the
public debt.
-Four Major Items.
Four important phases of govern
mental activity are dealt with in con-
siderable detail by the President in his
recomme nda ations regarding the bud
get. They are the air service and
aviation. Government building. prohi-
hilton enforcement and Federal aid to
the States in road building and other
matters.
He urges strongly the appropriation
Of at least $40. 900 600 Il year to con-
str1ct much-needed Government build
inCs in the District Of Columbia
He recommends liberal appropria-
lions for the air services and for pro-
hibition enforcement
He issues a warning against further
increasing the Federal aid to the
States on the ground that it spells
added expense on the people, both
through Federal and State leves.
The estimates for the upkeep and
maintenance of the District of Column
lila set forth in the Presidents mes
sage total $50 .626.579. The appro-
priations for the fiscal year 1926 were
s36 .032. .S53. or S4O6.274 more than the
estimates now submitted for the next
fiscal year.
Summarizes Appropriations.
Differentiating between the estimates
of appropriations for the fiscal year
1927 and the estimates of expenditures
the President summarizes the esti.
mated appropriations at S3,156. 130.-
1856 payable from the Treas sury, and
exclusive of the Post Office Depart
ment and postal service, pay bale from
The postal revenues. Including the
latter. the total estimated appropria
tions for the fiscal year 1927 become
50 S96 POI. .921.66.
The total appropriations made for
1925 were S3.10o.511 .645.3l. exclusive
of the postal appropriations. and with
them S3.14l.IS7. .06O.31. The postal ap-
preparations for 1927 jump approx
n1ately s104. 900. 900. due in large part
10 the inCrea ses in pay for postal en-
ployes provided in tho law enacted at
the last session of Congress.
The comparison Of the annropria-
tions for the years 1926 and 1927 pro-
vided by these figures are somewhat
misleading. the President says. He
points out that the estimates of ap-
preparations for 1927 payable from
the Treasury apparently exceed the
amount of the appropria for 1926
However. in making a comparison"
the President continues. I'VE should
lake into consideration the lawful OBJ
legations for 1926, which have been
determined since the appropriations
were made for that year. Taking
these into consideration. the estimates
for 1927 are less than the appropria-
tions and lawful obligations for 1927"
Public Debt Reduction.
Particular stress Is laid by the Pres
ident on the reduction of the public
Geht. HIS statement in this connection
is of particular interest, IN view of the
proposal advanced in Democratic quar-
rers that the payment of this debt
he spread over a period of 81 years,
The time allowed our foreign debtors
10 nav their war debts to the United
etates. The President calls attention
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