Evening star., 1925-08-01
Madden on Retrenchment.

Martin B. Madden, chairman of
the House appropriations committee
who, in measure, holds the nurse
strings of the Treasury, strikes an
encouraging note in his declaration
for further reduction of taxes and
curtailment OF expenditures. made
Following conference with President
Coolidge. Mr.. Madden handles the
spending end of the Governments
business. The less the Government
spends, the less revenue il needs. and
the lower the taxation. The chair.
man of the appropriations committee
VINO has preached economy in and out
OF season for years, declares now that
Congress should not appropriate more
than $500, ,000, 900 at its next session
or about s125, 900 less than at the
last meeting of the National Leeis-
lature.
While Mr.. Madden declares himself
heartily in favor of the administra-
tons plan for further tax reduction
he differs with the policy Of the Sec
retary of the Treasury, which has
been to use surplus revenues TO re-
duce the national debt. He prefers,
he says, plan of rebating taxes to
the taxpayers, if a surplus remains in
the Treasury of more than $50 900 900
at the close of a fiscal year.
In the opinion of Mr.. Madden such
plan would result in the taxpayers
of the country actively urging upon
their representatives in Congress the
need of curtailing appropriations, SO
that they could benefit by a return of
taxes, instead of urging that appro-
pr1atlons be made for this or that
project. The psychological effect, he
holds, of a promise to give back to
the taxpayers money paid into the
Treasury by them, in the event that
Congress keeps expenditures low
would be helpful in bringing about
retrenchment in Government appro-
priations and expenditures
No real difference exists between
system that brings about a rebate of
taxes after they are paid and system
inally paid, provided the Government
expenditures are identical under both
systems. The people of America have
had impressed upon them in the last
few years the need. of economy in
Government expenditures to such an
extent that Mr.. Madden's plan of
rebate might not be so appealing as
under other circumstances. Many of
the taxpayers doubtless would prefer
TO have their taxes reduced in the
sum than is actually needed by the
Government in the hope that eventu-
ally part of their payments will be
returned to them
The United States, under the pres
ent administration of its finances, is
reducing its national debt 1t is this
national debt. with it's interest
charges, which lays the chief burden
of Federal taxation on the people of
America today. 1t seems the part of
good sense to reduce as rapidly as
possible the debt itself, and that has
been the policy of Mr.. Mellon, who
applied the $3.50 600, 900 surplus exist
ing at the close of the last fiscal
year to the reduction of the debt
The chairman of the House appro-
priations committee is skeptical re-
garding possible savings from a reor-
ganiZation of the Government depart
ments. The number of employees, he
feels, will continue the same, no mat
ter how the various Government
agencies are shuff1ed about. And the
employees have to be paid. In this he
differs sharply with Senator Curtis,
Republican leader of the Senate, who
has insisted that the reorganization
properly carried out would result in a
saving of 100000, 900. Reorganiza-
ton is certainly worth a trial, for
enormous duplication and overlapping
of work in the Government depart
ments has arisen from the Topsy-like
growth of the executive departments
and bureaus.