New Britain herald., 1929-12-04

O00. 900 and expenditures about s2A3.o0O.0U0.
 Prohibition enforcement activi- ties gained in increased budget csti- mates for the justice department. coast guard, customs service and prohibition bureau. although the latter estimate merely recommended d continuing the S1.o75.OOo obtained in supplemental estimate this year. The coast guard estimate was in creased by s2,45O.N00 for new yes sols. pay raises and additional per sonncl.
 In tho estimate for the justice de- partmcnt Of s32.o17.292 there was included an increase of s4079.922 , over last years appropriation for raising salaries, adding new investi- gators and other officials. detecting and prosecuting crime, and oXpan- sion of federal pcnitcntiarics.
 Leading Increases
 Leading increases in the budget estimates for 1881 as compared with tho present budget were stated as follows:
 EnlarGinG capitol grounds. S. Goo,000; completion senate office building, S2.7oo,OOQ; interstate com- mcrcc commission. S2.S0O.000: vet cran bureau for soldier pensa- tion. A.55o.ooo; medical and hos pital services 3.95o.Ooo: military and naval insurance, $4.750,o00.
 Forest service. $3.5OO,Ooo; public roads, s2.500.O00; plant quarantine and control. sl.l00.000 aeronautics branch commerce department. g. 500,00 Indian service. S3. 100, GOO; justice d"na rtment expenses. l,100.- onO: penal and correctional institu- tjons, s2.250.000: alterations 10 navy vessels. sG.45o.ooo: increase of navy. %$.g50.ooo: state department, for cisn service, s1,SO0. .00O; treasury department, rofunding taxes collect cd illegally. $1o.o0o, 1000: war dc partment. buildings at military posts. sl600. 900: air corps. Sl,100,- GOO: rivers and harbors S5.n00,0 ,0O: flood control. s5.0oO, ,oOo: Distr rct Of Columbia $3.3QO,o0O; public debt, S11.500.O0n.
 Concluding his summary of the 1851 budget. President Hoover sounded d note of optimism. He advised congress:
 Finances Are Sound
 "Our finances arc in sound condi- tion. The public debt which at it's peak in August. 1919. amounted to $@S,596, o000 900. stood at sl6,93l.- Goo.00O on June go. 1929. We are wisely committed to a policy which insures the further progressive re- duction of the debt. We will reach in 1881 for the first time the period when the annual reduction required by law in the principal of the debt will be greater than the annual in tcrest charges on the debt.
 eve are also committed to the annual amortization of our other long term commitments-suc as the adjusted service certificate of the World war veterans and our liabil- ity under the retirement laws af- fCcting civilian personnel.
 "Our estimated expenditures for this and the next year arc well within our expected receipts With the recommended reduction in taxes the margin between the two will be considerably leSsened. but 10 what extent we do not definitely know to- daN. This situation emphasizes the necessity for careful scrutiny oi any proposed additional activities which would involve a material ln- crease in expenditures in order that we may not jeopardize either the balanced condition of the budget or the continuation Of the benefits Of reduced taXation.'
 Washington, Dec. 4 P)-Secretary Mellon placed tax reduction plan formally before congress today along with a statement that business was good in 1929 and promised to Ge good in 1880.
 Citing q surplus of treasury re- Ceipts over expenditures of $iS4,. GOO, ,000 for the fiscal year ended last June 90, and estimating $225.00V,- 900 would be available for the , months ending next June 90 and Sl22.0oO.000 for 1881 he suggested the following rate changes:
 A reduction on normal incomes and corporation incomes of 1 per cent, making the levy OH individual incomes F per cent on the first S4.000, per cent on the next $4.- 900 and per cent on all above that figure, with q drop from 12 to II per cent on corporations. Mr. Mel lon said the lowering of the tax on corporations would benefit the larG- est number of persons. These bus mess organiza ations, he said, were overtaXed in comparison with indi- Viduals.
 Emphasizes Well Known Views
 The secretary emphasized his known views in making his recon- mcndations. These included one which ho had previously made in formally, that congress adopt a fcX- iblc provision for the tax law which would enable the government to lower or raise taxes as the condition Of the trcasury's finances warranted.
 Speaking of the surpluscs, the secretary said the excess of receipts vas due 10 a great increase in in dividual income, which in 1928 showed a gain Of S2,000. .000, GOO in profits from sale of capital assets, duo to trading on the stock market. IL was difficult to determine. he said, what effect the precipitous de- cline of security values" would have on security transactions (which un- occasionally yielded 8 very large in come in 1928 and the first eight months of the calendar year 1929"
 Most of the scCretary's annual re port. containing his rccommenda- tions. dealt with conditions which governed before the recent stock market pIuupr but if contained no