Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-07-01

|
Yield from Customs.
Customs yielded $6O5, 100000, as
/ compared with an estimate Of s61G,
600 900, which loss was more than
made good by receipts of S644,O0c,0OC
from miscellaneous internal revenue
as compared with the estimate OF
$619, 100000 In 1926 customs receipts
were 1919 100000 and miscellaneous
internal revenue 1855 900. 600.
Miscellaneous receipts aggregated
| 1854 900 900, as compared with an
| estimate of $500 100000 and yield
| last year of $545, 000, 900. The increase
over the estimate is entirely accounted
| for by one item. 1t was estimated
that approximately S32.000,00O would
be received from the railroads in dis
charge of their obligations, including
| interest payments, as compared with
| $40 900 900 in 1926, whereas approx
mately $90,000,000 was received. In
this connection, it should be noted
that the indebtedness of the railroads
| to the Government is rapidly being
| liquidated and that receipts from this
| source can not be anticipated In any
large amount after the fiscal year
1929
"All told the total ordinary re-
ceipts of 81 ,129 ZOO, 900 are $102 200, 900,
or 2.53 per cent over the estimate.
| While there were, of course, number
of minor increases and decreases,
| which largely offset each other, two
items account for the increase Of S1O2,-
600, 900. namely, under the taxation
head increased collections of back tax
es, and under the head of miscel-
laneous receipts an excess of $57 ,0OO,-
600 receipts from the railroads over
the anticipated amount. 1t is signifi-
cant that both these items fall in the
class of resources that cannot be con-
sidered of permanent character.
Sl67, 100000 Is Increase.
Total ordinary receipts in the fis-
cal year 1927 of S4,129 100000 as COM
pared with $685., 100000 for 1926,
show a total increase of $167, 100000
for 1927. The principal items Of in
crease in 1927 were S26 100000 in GUS
toms receipts: $32 100000 in internal
revenue receipts; 100000 in for
eign repayments; $53,000.000 on ac-
count of railroads; SEQ 100000 from
Federal Farm Loan bonds and other
securities. and $16,000,0O0 net from
other miscellaneous receipts.
Total expenditures chargeable
against ordinary receipts, amounting
to So, 493, 900 900, were $3.50 100000 less
than the estimate. The difference is
accounted for by $20.000,000 of eX-
penditures postponed because of the
failure of the second deficiency bill,
S35 ,000,000 decrease in tax refunds
due to change in the revenue law, the
revision in the amount chargeable un-
der the head, Debt Retirement me-
cessitated by the non-ratificat ton of
the French settlement, and the re-
mainder to reductions in other eX-
penditures.
1.-THE sec, 1000 900 resulting from the
failure of the second deficiency bill to
pass and the S25 10000 decrease in
tax refunds do not represent actual
savings, but merely postponements.
The revision of the estimate of the
amount chargeable to debt retirement
from foreign repayments is of book
keeping character and does not actu-
ally affect the resources of the Gov
eminent available for debt retirement.
Total expenditures chargeable
against ordinary receipts, compared
with 1925, show a decrease for 1927
of $91, 100000. This difference is, of
course, net figure of increases and
decreases. The principal items of
the increase are $31, 100000 in gen.
eral expenditures and $32,000,000 on
account of the sinking fund and other
debt retirements chargeable against
ordinary receipts. The larger items
of decreases are $45, 100000 for inter-
est payments, $72,000,000 on account
of customs and internal revenue
refunds, $12,000.000 less in postal de-
ficiency charges, $10.000,OO0. decrease
on account of charges for civil serv-
fr.v1
which under present procedure APP
pear under general expenditures, and
other items aggregating about
$15.000,O00.
"The increase of $102, 900. 900 in re-
ceipts and the decrease of $150,000, 900
in expenditures over and under the
figures estimated last Fall resulted in
a surplus of 1852 100000 in excess of
the estimate; $611 100000 of the sur
plus has already been applied to the
retirement of public debt obligations
and is not available for tax reduction
or any other purpose: $4,000, 900 has
been carried over as an increase in the
net balance in the general fund at the
close of the year over the balance at
the beginning, and will be used for
debtretirement purposes early in the
fiscal year 1928.
MOTE IIldII OIl0-0dn VI tHc surplus
of $685., 000,0 900 is due to receipts on
account of disposal of capital assets,
back tax collections in excess Of tax
refunds and other items of fast-dis.
appearing or homecoming character.
From latest figures now available,
back tax collections will exceed $780,
100000, and collections on account of
capital stock tax of corporations, now
repealed, will amount to over $1,000
900.
"Deducting from the aggregate of
these amounts the sum of Silt 900, 900
paid for tax refunds, leaves q net
balance of $3.50, 100000 in revenue from
this source. The work of the Internal
Revenue Bureau is fast becoming cur.
rent and while some net receipts on
this account will continue to be real
ICED, it is expected that after the fiscal
year, 1929, net receipts from this
source will be negligible. Receipts
from capital assets on account of rail-
roads aggregated about 100000 900:
from Federal Farm Loan bonds and
other minor securities. 500 200, 900; and
from the War Finance Corporation.
$27,000,000.
''All of the Farm Loan bonds owned
by the Government have been repur-
chased by the Federal Land Banks, so
that no further receipts from this
source will occur, while receipts on
account of railroad securities in APP
preciable amounts will disappear in a
relatively short period of time. The
War Finance Corporation has prdc-
tically completed liquidation Of its
assets, the proceeds of which have
been deposited in the Treasury. 1t
will be apparent, therefore, that with
out these special and homecoming
items which aggregate 1870, 1000, 900,
the surplus would have been about
| $265, 900, 900, of which a considerable
part is to be attributed to decrease in
| expenditures, some of which repre-.
sents a postponement rather than
actual saving.