Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-04-02
Inclined to Smother Sugges-
tions for Tax Reduction,
Holding Margin Too Small.
INCOME LEVY INCREASE
LAID TO STOCK MARKET
Unexpected Gain, TOtaling More
Than $s6,oo0,O00, Credited
to Proft-Taking.
BY the Associated Press.

| D' CIe associated Press
Gratified over the prospects NJ
SlOo'oOO,OoO Treasury surplus this wear.
congressional leaders nevertheless to-
day were inclined to smother s,,oeoe-
lions for another tax reduction.
chairman Smoot of the Senate
linance committee declared the $780,
OOO,OOO margin was not sufficient IN be-
GIN a new tax reduction measure. He
oeclared appropriations authorized bv
congress at the last session would AL
most consume this prospective surplus.
| Moreover" he said "most of tho
| prontS going to make up the Increased
saAeS received this year by the Govern
lienI were made from a rising stock
iidlAeV' What goes up is apt to come
uoWn. we lace the prospect of having
taxpayers deduct losses If there should
ne declining stock market. The Cow
ethment cannot gamble on such a con-
| tingency." 9 Oo14-
Senator Smoot agrees with Secretary
| Mellon that if another tax revision is
made, attention should be given to a
cut In the rate on earned incomes. But
ne does not want even this tax revision
| SSAS@ANASN az tIlAo IlIIlS.
Sees Business as Key to Cut.
| The Utah Senator, as administration
hnanclal expert, does not believe tax
| revision can be considered at the next
regular session, beginning in December.
Future revision, he said, might depend
upon increased business in the country.
he saw no opportunity for reductions
IN Government expenditures.
Unexpectedly large receipts from the
last income tax payments, coupled with
a persistent policy of loan reduction,
brought the national debt on March 81
to the lowest point since the termina-
ton of the World War.
! The net debt on that date was re-
ported today by the Treasury Depart
ment at S16,808, I'll, ,272O6, compared
to S17,492 GOO, ,237.66 one year ago. The
| peak point of war debts was S25.478.-
592, 1925, the figure for August, 1919.
The month-end statement of the
Treasury disclosed that total receipts
from the income tax for the first of the
tour quarterly payments of 1928 were
S6Ol 1863 ,80466, justifying all of the re-
Gently built-up hopes of an addition of
about $250000,0 900 to the Governments
recelpts from this source alone in 1928.
Revenue Increase General.
Last years March income tax pay
ments stopped at $515,669,1 and the
| increase this year of more than $685.
OOO,OOO Is expected to persist in large
| part through the other three income
| TAX payment periods, though a large
number OF such taxpayers settle their
| account with the Government in a sin
! gle payment during March.
There also was noted this month an
increase In practically all other sources
OF Government revenues, customs re-
celpts for the month having reached
me total OF $55,000,000. or about ST.
O0O,OOO more than in March last wear.
| while the Miscellaneous internal reve-
nue. items brought in more than $50
100000. and slightly more than those
during the same period last year.
Profit Taking Boosts Total.
The rising stock markets of 1928.
"hlcn caused the Federal Reserve Board
q great deal of concern are credited by
the treasury Department with the in
crease IN March income tax returns.
! FurthermoTe, it was disclosed. lndi-
/ Vldual income tax returns have in
| creased to such an extent that for the
arSt time, they exceed corporation tax
| collectlons. which came up to expecta-
tlonS under the reduced rate of IL per
cent. The explanation for the Increased
collection from individuals was that
with the stock markets rising the wav
tney old few deductions were made Tor
| losses and, with the maximum surtav
rate cut from 40 to 20 per cent. many
persons who might otherwise have held
their stocks took their profits and in
cIuded them in their returns.
Reserve Governors Confer.
Meanwhile, the controversy over ef-
1ortS of the Federal Reserve Board IN
| curb the use of credit in stock market
operations has given little evidence of
aOatement, although neither the board
nor the governors of the IL Federal Re-
serve banks. who were in session sepa-
rately yesterday and again today. went
INTO the New York situation.
Inc governors are having their semi
aLnlaI conference and although several
of them dropped in on the hoard meet
ing, which also was attended by Secre-
! tary Mellon, it was announced that
they had discussed only routine mat
tiers. After the board meeting Secre-
tary Mellon said no mention had been
mace OF the action of Charles z.
Mitchell Of the National City Bank.
during the credit crisis last Tuesday.
in advancing S25.OOO,OO0 to break the
advance in the call loan rate.
That action. which drew demand
Tor his resignation as a New York Re-
serve Bank director from Senator Glass
Democrat. Virginia, former Secretary
[ OF the treasury was given vigorous
support last night by L. M Williams.
senior member of the banking firm of
John L. Williams & Sons of Richmond.
a brother of the late John Shelton Will
liams. controller of the currency in
1920.