Evening star., 1926-08-25
Present Revenue Acts Ef-
feet Still Unknown, He Says.
at White Pine.
GETS PRESIDENTS VIEWS
ON RIGID ECONOMY NEED
Thinks Further Cut Should Await
Debt Pact o. K.-Hits
Treasury Policy.
By j. RUSSELL YOUNG.
Staff CORRESPONDENT of The Star.


WHITE PINE CAMP. n. Y. Au-
gust 25-It is possible there will bS
further tax reduction in 1923. but
not before then, according to views
expressed here by Representative
Martin 3. Madden Of Illinois, chair
man of the House appropriations
committee, who is a guest at the
Presidents camp.
Mr.. Madden is very positive In his
belief that no effort will be made at
the next session of Congress to again
tighten the tax burden of the Nation
He looks for the next revision OF the
revenue act some time early in the
long session. which will begin a year
from next December.
Praises Economy Program.
Mr.. Madden, who was invited To
White Pine Camp to- confer with the
President On the preparation OF bud
get estimates and to discuss other
fiscal matters, in addition to predict
ing q possible tax reduction in 1928.
praised the financial program Of the
Coolidge administration, defended the
Republican protective tariff and ad-
vocated further development of wa
terwayS.
While declining to talk about the
case of Col. Frank II. Smith, Repub-
lican nominee for Senator 1T Illinois.
Mr. Madden, one of the leaders IN
his State, is expected to give Mr.
Coolidge a full account of recent de
velopments there. Mr.. Smith was
brought, under fire by the Reed cam
paign fund investigating committee
In discussing further tax cuts, Mr..
Madden said: II pointed out in an ar
ticle published some months ago that
we probably could cut taxes some
thing like $3.50. 100000. One of the
items which would make this posi-
BILE, as / said at that time, would be
to stop buying for retirement about
$3.50 900 900 worth of Liberty bonds
year. This now is being done by
the Treasury without warrant of
law"
MIR. Madden, like the President and
other officials. feels that the effects
of the present revenue act must be
ascertained before 1t will be wise or
feasible to- consider further reduc-
tions. Furthermore, since 1927 is
considered the crucial year in the ad-
n4inistration program. Mr.. MADDEN
will be called upon by the President
to help keep appropriations TO the
bone in the next session or Congress-
An outgoing Congress, composed OF
many members who no longer Will bt'
held accountable politically. usually IS
inclined to be profligate in expend'
tures OF course, the President has
the veto power over an appropriation
bill but that is looked upon as dan
Cerous course because 1t may result
in such delay that Il special session
of the new incoming Congress would
have to be called This is something
which Mr.. Coolidge wants to avoid.
Madden Is Counted Upon.
The way to handle such matters.
then, is through the leaders In CON
gress, and Mr.. Madden Is the per
sonification of the unrelenting type
when 1t comes to stony hearted ability
| to turn a deaf ear to requests tor ap.
proprjations. The President relies
upon him to resist proposals for ap-
| propriations that would increase eX-
penditures and thereby possibly cause
a deficit or reduce the prospective.
slender surplus which is forecast now
for the current fiscal year ending
June 80, 1921.
On the question of tax reduction.
| Mr.. Madden is in agreement with Mr
Coolidge and undoubtedly VIII be WIN
| Mr.. Mellon. Last Summer however.
| the chairman of the appropriations
committee and Secretary Mellon were
at odds over the amount of tax reduc-
| ton as well as MIR. Maddens plan for
an automatic tax reduction.
| Now there is prospect of further
| conflict between the two over Mr.. Mad
denis suggestion that the Treasury
cease buying $3.50, 100000 worth of
i Liberty bonds out of surplus each
wear for retirement, because the
Treasury will insist upon this proce-
dure. which is held to be sound and
! prudent financing.
! One of the items understood to be
discussed by the President and Mr..
! Madden is whether it will be possible
to get through the session without
making a special appropriation for
aircraft development in the Army and
/ Navy. The Presidents view is that
funds for this purpose should come
mainly out of the current moneys of
the two departments. The depart
ments can be whipped into line by the
| President If he wants to do 1t that
way, but Congress is not so easily con-
trolled, SO the Presidents policy on
this important item may depend
upon the information he receives
from Mr.. Madden.
/ Wants Debt Pact O.K.'d
| Besides insisting that he has no
i thought of tax reduction next Winter
| Mr. Madden said today it will be well
| to postpone action toward that end
until most of the debt agreements
f! have been ratified. The French
! agreement is the last important one
| not approved. Mr.. Madden expects
| it will be ratified here and in Paris
| but adds that Congress should wait
! until this is accomplished before at
tempting to make any important
! change of fiscal policy such as would
| be involved in another tax cut.
! Mr.. Madden called attention to the
! economy program of the administra
| ton, which, he said. has made pos
sible tax reductions of Sl.750. 900 900
expenditure of $4,000 100000 in behalf
! of disabled veterans and application
| of $500. 900 900 a year toward the
sinking fund to pay off the national
I, debt.
| There have been occasional criti
cisms of the Republican tariff policy
he asserted, but the best evidence OF
| it's wisdom is the annual receipt OF
| $685., 100000, a quarter of billion
| more than any previous tariff act
| produced. In addition, it is assuring