The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1927-06-11
MUST CONTROL
SPENDING URGE
!. COOLIDGE SAYS
Tax Reduction Futile Unless
Expenditures r e m ain
Same, He Ayers
BIG SURPLUS CERTAIN
Lord Calls on Department
Heads to Aid in Keeping
Expenses Low
BIG SURPLUS CERTAIN

Washington, June 11.--(R-While
declaring the administration 10
striving as always to pave the way
for further lowering of the public
debt and of taxes, President Coolidge
warned Friday night that hope of
further tax reduction was futile un-
less federal expenditures were held
approximately to their present level.
Speaking before the semi-annual
tudget meeting Of heads Of govern
ment departments. the president said
that surplus of $685., 100000 was
certain for the present fiscal year
ending June 30, and estimated that
the surplus for next year would
reach $685., 100000.
Surplus Doubtful 49,
As guide to the future. he said,
however, that this years surplus was
of doubtful value, because it includ-
ed number Of extraordinary receipts
that could not be counted on for more
than a limited period. He cited
among these extraordinary items de-
layed income tax payments, railroad
receipts, the capital stock tax and
cs,ilecti0ns from farm loan bonds.
"In considering the possibility Of
tax reduction" he said, 1--WE must
cannot be written from the stand
point Of single year, but must be
lexpected to y;-ld adequate revenue
over a period of years. 1t is essen
tial therefore to discount temporary
and homecoming items and to base
the estimated revenue on those re-
sources which can be looked upon as
essentially permanent in character.
1--WE have no fear our present
revenue laws will not produce ample
income to carry on the business Of
the government. But this does not
justify an enlargement of our ex-
penditure program. Rather does it
dictate and demand that we make
renewed effort to keep within our
present expenditures. One thing is
certain. Unless we succeed in hold
ing expenditures at about their pres
ent level, hope Of further tax reduc-
tiop will be gone.
Income Grows
I'm the face Of each of the three
reductions in taxes since the fiscal
year 1921 we have continued to ac-
cumulate surpluses at the end of each
year. We should not overlook, how
ever, the great influence these sur
pluses have had in making tax reduc-
tion possible. Their application to
the further reduction Of the public
debt has permanently reduced our in
terest charges. II has been an in
vestment for the people Of their own
money. In the business of govern
ment. as in private business, the time
to liquidate indebtedness is in the
time Of prosperity. The reduction of
fixed charges serves q twofold pur-
pose. It materially assists in main
tanning prosperity and would be par
ticularly helpful in adversely"
Discussing the benefits Of the bud
1get system the President said that
"elimination 'of non-essentials and
direct savings have about reached
their limit 4as9 =.
Must Be Conservative n,i
1--WE are striving as always to pave
the way for further reduction of debt
and of taxes" he said. This in it.
self necessNates unremitting effort
to hold the level of our expenditure
program. After careful study of
our probable financial condition in
1929, it is my desire that the estA-
mates of appropriations for that year
be held within total Of $3.3O0.OO0,-
600. This is exclusive Of reduction Of
the debt, the postal service, and tax
Continued on page six)