Evening star., 1929-07-01
Federal SURPLUS
IS $16,0O,0)D
Mellon Shows National Debt
!, !. Below IL Billions, First
Time Since War.


In making this announcement, Eecre-
tary OF the Treasury Mellon declared
the Government closed the year 'swith
its finances IN . highly satisfactory
Reviewing comprehensively the opera
tons Of the Government for the past
year, MIR. Mellon In o statement said
BY substantial amount, while our ma
tionsl debt shows reduction over the
IL months period Just closed Of approxi-
mately $67s, 600, 600, as compared with
one Of $907, ,000, 900 In 1928. For the
first time since the war, our national
debt b now below $4,000, 600, 900.
Tne oos Sosad dS ordinary receipts amounted
Mellon, "as compared with sl.oSa, ,ooO.-
600 In the fiscal year 1928. The ex-
penditures chargeable against such
receipts were 3S,o4B, 600 900, as COM
pared with $3.644, 900 900 In 1925 The
surplus amounted to $l85,000,0 900, as
compared with q surplus Of $39S, ,0O0, 900
In 1928.
ss,s4e, ,eoo,Se Taxes.
"The aggregate of tax receipts, that
Is, customs, income tax and miscellane-
Gus internal revenue receipts, was
$3.50 900, 900, or sits, 900 900 more than
receipts from these sources In 1923. 4
Income tax receipts aggregated $2,-
$4,000, 600 as against $2,174, ,000, 900 In
1923, or an increase Of $156 ,000, 900.
The. receipts from. the current corpo-
ration income tax werei somewhat
lower than during the previous fiscal
poration income INK rate from 1871 per
cent to u per cent. but practically all
OF the loss QccaSiuned by the reduced
rate was made up by Increased income
reported by corporations, due to In
creased prosperity. Back tax collections
likewise showed o falling OF, somewhat
greater than was anticipated. On the
other hand, there was o remarkable In
crease amounting to about $3.50 0o0, 600
income tax. Until the returns have
been analyzed it is impossible to assign
definite reasons for this abnormal in
azNase, nus, generally speaking, It was
Enthusiastically due to widespread pros
perity, the cumulative results Of the
reduction Of surtax rates to q more
reasonable point, and more specifically
20 increased income realized on the sale
es capital assets due, In the main, to
m exceedingly active and. constantly
rising security market.
.'The Treasury's estimates of receipts
from the corporation. tax and from back
taxes were reasonably accurate. Owing
to the unprecedented conditions above
described, which It was impossible to
forecast with. certainty. the receipts
from individual. income taxes were con-
siderably underestimated. u
Customs Duties Gain. a[
2 sCustons duties, including the tom
mage tax, yielded &602. .000. 600 as COM
pared with &560, ,00O, 900 I'm, 1923 and
&he Treasury estimate OF $562, ,00O, 900.
The increase Is accounted for, In large
measure, by the impending change IN
our tariff rates, experience having
shown that imports tend to increase
. prior to tariff legislation.
Miscellaneous internal revenue re-
$4,000. 900 from the 1923 figures, but
an increase of.-<2D, 100000 over the
Treasury estimates. Tne falling OF m
revenue Is due, In the main, to loss OF
about SA5, 900 600 resulting from the re-
peal o. she excise tax on the sale OF
automobiles and. Of about $l2,0 ,000, 600
owing to increased exemptions applic-
able TO the so-oolled amusement tax. q
/ total loss Of some $4,000, ,O00, which,
by increases Of about sc, ,00O, 900 from
xhe tobacco tax and about $4,000, 900
Srom ktame etaxes. The estate tax
gaAldeA ahoalkz the same amount as the
previous year. namely 500. .0O0, 900.
1.-The most significant changes to be
noted In 1929, as compared with 1928,
in 20 far as receipts are concerned. is
the almost complete disappearance of
the large .zezenue derived up to the
present time from the sale Of Govern:
ment-oWned capital assets, continued
downward trend in back-tax collections,
the loss In revenue occasioned by the re-
peal OF the automobile tax, the modifica-
ton OF the admissions tax and the re-
duction Of the corporation tax rate; and,
on the other hand, the unusual increase
In receipts from the individual income
tax, the record-breaking receipts from
the tobacco tax and the unusually large
yield Of the stamp tax.
Increase in Expenditure.
'aTptal expenditures cf1argeable against
ordinary receipts amounted to $685.
00O, 900, as compared with $3,644, ,0Oo, 600
In 1928, or an increase Of $204 900 600,
the principal items Of increase consist
ing Of increased postal expenditures Of
sos 900 900, payable from the Treasury,
Of which $4,000 900 were for compen-
ton as q result Of recent Supreme
Court decision, Of increased internal
revenue funds of $42, 2,00O, 900, Of In
creased naval expenditures Of $50, ,O0O,-
600, Of food control and other expendi-
lures connected with flood relief Of $30,-
600 900, Of the first governmental con-
tributions to the civil service retirement
fund Of 10000 900, Of $4,000, 900 tns
creased Veterans Bureau expenditures,
Of Increased public building expendi-
tures and OF increased compensation to
Government employees The principal
items offsetting these increases are S50,-
600 200 for war claims paid in 1928 and
. decrease in interest PEI Of $54, ,000, 600.
'Expenditures as compared with the
budget estimate shoW an increase of
$4,000, 900. Though there are q num-
Der Of decreases and increases In the
expenditures Of the various departments
which to large extent Offset each
other, this Is accounted for principally
BY three items-s52, ,o00, 900 paid to the
railroads on account Of back mail pay
as the result Of the decision of the Su-
prsme Court, an increase of some $780,
100000 IN internal revenue refunds and
. $4,000. 900 loan to the Greek govern
ment. or total Of $l03 ,000, ,0o0."
FRENCH GOLF TITLE
FOR U. S. OR ENGLAND
Jack Westland Of New York and
Richard Fletcher Battle Today
at Chantilly.
~ the Associated Press.
CHANTILLY, France, July IAN
American and Briton will fight 1t out
for the French amateur golf champion.
ship. Jack Westland, Winged Foot Coll
Club, New York, meets Richard Fletcher