New Britain herald., 1927-08-17
tainly he would not favor cutting the

tainly he would not favor cutting the
tobacco tax, which now is second
only to the income tax in the re-
venue it produces for the United
States government. He Is not ex-
pected to favor the elimination Of
the club and theater admission tax
es, although he might consent to a
reduction.
Indirect taxes should be levied
upon articles which have wide
sale. among large clientele. and
are In the nature Of luxuries rather
than necessities" he explains. This
certainly describes tobacco. 1t also
describes theater admissions. al
though not quite so completely, now
that the last reduction eliminated
the movies from admission taxes.
Still less completely does it fit the
automobile.
Undersecretary Mills's cautious
ness in government finance is eXem-
plified in a statement he issued re-
captivating the governments re-
ceipts and expenditures during the
fiscal year 1927. in which he point
ed out that most of the huge sur
plus came out OF non-recurring
items. such as back income taxes
collected, and debts paid TO the gov.
eminent by the railroads.
He said:
More than one-half OF the sur
plus of $685., 100000 is due to re-
ceiupts on account of disposal OF
capital assets. back tax collections in
excess of tax refunds, and other
items of a ast-disappearing or non
recurring character. From latest
figures now available, back tax col
lections will exceed 100000. 900,
and collections on account of capital
stock tax of corporations, now re-
pealed. will amount to over $1,000
600.
"Deducting from the aggregate Of
these amounts the sum of s117,000,-
600 paid the tax refunds, leaves a
net balance of s1ao,o00.ooo in rev.
enue from this source. The work Of
the International Revenue Bureau is
fast becoming current and while
some net receipts on this account
will continue to be realized. 1t is ex-
pected that after the fiscal year,
1929. net receipts from this source
will be negligible. Receipts from
capital assets on account Of railroads
aggregated about 100000, 900; from
Federal Farm Loan bonds and
other minor securities. ss3,0Oo,0oo;
and from the War Finance Corpora
ton. s27.oOo,o0n.
"All of the Farm Loan bonds
owned by the government have been
repurchased by the Federal Land
banks so that no further receipts
from this source will occur, While
receipts on account Of railroad Sc
curities in appreciate amounts will
disappear in a relatively short period
Of time The War Finance Corpora
ton has practically completed
liquidation Of its assets, the proceeds
of which have been deposited in the
treasury. 1t will be apparent, there
fore. that without these special and
items which aggre-
gate s37o.00O0OO, the surplus would
have been about s265.000,000. Of
which a considerable part is to be
attributed to decrease in eXpendi-
lures. some of which represents
postponement rather than actual
saving"
His foresghtedness and long-run
economy in handling government ex-
penditures shows itself mainly in his
insstence on retiring the public
debt as rapidly as possible, and In
retiring first those items of which
the government pays the largest In
terstate rate. The interest charge
against the government was de-
creased by s23.0o0,000 last year,
and the annual interest rate at the
close of the fiscal year 1927 was
S.96 per cent. whereas a year before
it was 400 per cent.
Copyright. 1927, General Press
Association)