Evening star., 1927-10-11
Executive Fears Deficit il
Figure Is Increased Over
-
That Amount.
CAMPAIGN FOR ECONOMY
IN GOVERNMENT URGED
White House Suggestions Follow
Recent Drive for Reduced
Imposts.


next reduction in taxes should he less
than $3.50 0.000.OO0 as has been sug.
gested in some quarters, In making
known the Presidents 8 opinion at the
White House today it was pointed out
that Mr.. Coolidge is inclined to think
that If taxes are slashed more than
$500, 100000 the Government will be
running with deficit.
President Coolidge was represented
as being strongly in favor of another
tax reduction. but he believes that
the cut should be in accordance with
what can be provided by an economic
administration and it should go hand
in hand with reduction of the national
debt
1t was explained that the President
has not yet received definite figures
from the Treasury Department for
complete estimates OF governmental
expenses from the Bureau of the
Budget.
Fight for Taxes Recalled.
1t Is understood that the Presi.
dents expressions were called for by
reported activities OH the part of the
United States Chamber of Commerce
and other organizations looking toward
Il tax reduction at the coming session
of Congress which will exceed $780,.
10000 or $400. .U0O, 900.
The President was reported as feel
ing that, While it is quite natural for
any individual or orga nization to- ia.
terest itself in lowering taxes, at the
same time that these organizations
should be bending their efforts in the
direction OF disceuraging or prevent.
ing appropriations for unnecessary
governmental expenditures and to help
keep down the running cost Of the
Government and to assist generally Ia
the economy policy of the adninistra.
ton.
The President cotnends that while
he has not Leen definitely advised az
to the surplus that reduction 0l
S35O, 900 900 to S400, 1000, 600 would Da
too large lie was represented, how.
ever, as wanting 1t understood that
he does not desire to 90 on record as
predicting the exact amount taxeA
may be reduced, but he has reason 60
feel that his warning Of q deficit in
the event taxes are reduced as much
as suggested is vel founded
Debt Reduction Question.
Because of his recent candid dis
cusSions of the tax question, Presf
dent Coolidge is very anxious that the
public understand his attitude. His
feelings in the matter. as represented
today are that reduction of the fund
ed debt and the reduction Of taxes
should go together. with the debt re
duction given preference. In the event
that the Treasury OF the. United
States does not approve a tax reduc'
ton. While on the subject today, the
President was represented as realiz.
ing some of the larger outlays or pub
lie money which have been made since
he was President. and which are eat
ing heavily into the Nations Treas
ury. He mentioned in this connection
the adjusted compensation law as be
ing the largest individual item Of ex
pense in this connection. and referred
to the increase in the pensions made
by the last Congress which will coAl
S6S.000,000 annually for some time te
come.
He was represented also as pointing
out that the Government faces other
large expenditures which are listed
as absolutely necessary such as afford
ing food control for the Mississippi
basin, which he realizes Is going TO
cost considerable. as well as some adj
ditions to the Navy and for the de.
veloplnent of the air forces under the
tive-year program. as well as for the
construction Of new buildings to house
the Army. These items Of expense
which will he separate from the ordt.
nary run of annual governmental ap.
preparations will in the aggregate.
amount to a huge sum. These extra
expenses OF Government the Presi.
dent feels, must be borne In mind
when the size of the Treasury surplus
is known and when the time arrives
for considering the question of lifting
further the burden OF taxes for the
people. The President contends that
unless the Government exercises pru'
dence in the expenses Of the Govern,
ment it will be found to the sorrow Oa
many that there will not be any tar
reduction at all.
Economy Is Necessary.
In this connection he contends that
it must be more generally realized
economy. He agrees that at times in
the past the Treasury surplus has
been higher than was originally esti'
mated. but he does not consider Il an
evidence of wisdom to count too great
ly upon 1t being higher again than Is
estimated Besides, advices received
by him show that there have been un-
expected increase in the surplus in the
past. due to increases in revenue
which are not likely to happen again.