The midland journal. (Rising Sun, Md.) 1885-1947, 1927-03-25
NEWS REVIEW OF
CURRENT EVENTS
500, 100000 Surplus for
Fiscal Year in Sight, Ac-
.cording to Mellon.

cordlng to Mellon.
G ECRETARY OF THE TREASURY
y Mellon has officially admitted that
the largest reduction in the public debt
on record may be accomplished in the
present fiscal year ending June 30
next.
A surplus considerably in excess Of
$50O,000,OO0, representing the differ
ence between ordinary receipts and or
binary expenditures, Is assured. Here
tofore, while members Of congress and
others have insisted that the half
billion mark would be reached, Mr..
Mellon has been unwilling to boost his
estimate beyond the $3.50, 100000 total
announced by the budget bureau last
December.
That the surplus will actually ex-
coed 5000, 100000, and may go as high
as 500, 100000, is now asserted by
some of the experts whose estimates
have usually been considerably above
those Of the treasury and whose pre-
dictions have been made good in pre-
vious years.
A surplus of $500, 100000 will mean
an actual debt reduction for the fiscal
year 1927 in excess of $1,000,O00O 600.
Debt retirement through the statutory
sinking fund will amount to nearly
$340,000,00O and retirements from pay
ments from foreign nations will rep
resent more than $230,O00,OO0. Debt
retirements otherwise than by means
of the surplus will amount to about
$570OOO,000. Adding a $500, 100000
surplus to this amount will mean Il
total reduction in the public debt of
81, O70, 100000.
The debt reduction has exceeded
81, 900. 100000 in only three of the last
seven years, the highest total being in
1920, when the debt was cut down by
81, 1876. 000,000. In 1922 the debt re-
1uction amounted to $1,O14, OO0, 600, and
in 1924 to S1,09s,ooe.OOO. The debt
was reduced in the fiscal year 1925 by
S735, 100000 and in 1925 by $S73,OOO.-
0O0 The total debt on December 81.
1926 was $1S,975,349, 765.
If the surplus runs as high as $685.
100000, and many financial experts
believe ii may, the record debt reduc-
ton of the year 1920 will be equaled
A surplus above this amount will mean
the breaking of all records in annual
debt retirement.
While the treasury still lacks ac-
curate totals on income-tax receipts,
1t was indicated that at least $780,
100000 has been collected. This
amount would represent an increase
of S5,0OO000 over March income tax
payments in 1926. Complete. reports
from the internal revenue collectors
may bring the total up above $780,
100000.
nm MARCH 16 Harry F. Sinclair,
~ millionaire oil magnate, was found
guilty of contempt of the United States
senate by jury in the District of Co.
iumbia Supreme court. The case grew
out of the senate investigation of the
Tea Pot dome oil scandal three years
ago, when Sinclair refused to answer
interrogations of the senate commit
tee. Found guilty on all four counts
Of the indictments against him, Sin
clair faces jail sentence of from one
month TO a year in the District Jail
and fine Of from $500 to $1,000. The
sentence has not been imposed, pend
ing the disposition of the motion for
a new trial made by Sinclair's coun-
sci, and its execution will be further
delayed by the appeal which will be
taken to the District Court of Appeals.
and ultimately to the United States
Supreme court, according to defense
attorneys, If the new trial is denied.
Sinclair, whose contempt trial is the
first of the criminal proceedings grow
ing out of the oil investigation to be
decided, was indicted under Section
1O2 of the Revised Statutes, the same
section which will be invoked against
Samuel insult, the Chicago utility mag
nate; his attorney, Daniel Schuyler
of Chicago. and other witnesses who
refused to testify before the Reed
slush-fund committee, If they are ever
brought to book.
Sinclair, refusing to answer the COM
mittee's questions ON the advice of his