The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-10-21
U. 5. TREASURY
DEFICIT MAY
REACH BILLION
Excuses Are Yielding for
Less Than Estimated
by Experts.
MILLS MAKES DEFENSE
Calls RooSeveIt'S Charges
Fantastic: Total May
Go Higher.
BY MARSHALL M'NEIL
Times stan Writer

WASHINGTON, Oct. 21-A paper
deficit of billion dollars and an
operating deficit of $500, 100000
probably will confront the United
States treasury at the end of this
fiscal year June 30.
The deficits may exceed these
amounts if congress, in the short
December session, IS compelled bv
the depression to pass further
measures for relief of unemploy-
ment, business and agriculture.
This is the conservative conclu-
sion reached by tax experts after
a study of new treasury figures
made available today by the United
States bureau of internal revenue.
These figures show that the new
excise taxes are yielding more than
in the first months of their OPP
Grafton.
But they also show that on the
basis of the August payments. made
IN September, and detailed today by
the revenue bureau, receipts from
these excuses are running about
$200,000,000 behind annual esti-
mates.
Answers Roosevelt Charges
At the treasury no comment was
made on these estimates of deficits.
But Treasury Secretary Ogden
Mills, just back from the grand po-
htical tour for the Hoover admin
istratlon, issued lengthy state
ment in an effort to refute the
charges made by Roosevelt at
Pittsburgh Wednesday night.
Mills called the Democratic cam
didate's figures on federal finance
fantastic"
The estimate of the impending
deficits is bolstered by the fact that
the last daily treasury statement
shows an operating deficit of more
than S500,0OO,0OO.
1t takes into consideration debt
service charges, extraordinary ap-
preparations made at the last ses-
sion of congress; but does not in
clude any estimate CT a possible
reduction in yield from the new
and high income taxes
These will not become Que until
next March; and while it is evident
that national income this YEAR
on which these taxes will be paid
has not risen, but fallen. the APP
proximate effect of the drastic pro-
visions of the new law which ebol~
lsh the earned income credit. and
change administrative features. is
unpredictabie now.
May Be Billion
l.. H. Parker, chief of staff of the
Joint congressional committee on
international revenue taxation. and
one OF the recognized tax experts in
official Washington, holds the opin-
ION that the treasury's paper deficit
may be about a billion, and its op-
Grating deficit half that sum when
this fiscal year ends next June 30.
Inc new and preliminary figures
indicate, Parker thinks, that the
treasury's revenue from new excise
taxes are about 100000. 900 wear
under the estimate. In addition.
ne points out that in the balancing
Of the budget the 1922, 900. 900
emergency relief measures were not
taken into account, so that we NAV
have an operating deficit of around
100000 900.
The sinking fund requirement is
nearly $500, 100000, so that there
may be a paper deficit of nearly
81 ,000,00O0
1t appears from the internal rev.
enue figures today that the new and
higher taxes on stock and bond
transfers and on conveyances will
yield more than the treasury esti-
mated last June, when the tax bill
passed, and that the new tax on
safety deposit boxes will produce
more money than expected.
Levies to Yield Less
But most of the other excuses. on
the basis of annual yield, probably
will produce less than was fore
cast.
But these new statistics also show
that in Augustine payments were
IN large part made in September on
transactions of the prior MONTH
most OF the excuses yielded more
than in the previous thirty DAYS.
The stock and bond transfers and
taxes went up more
than 80 per cent, rejecting renewed
activity in Wall Street.
The tax on futures deliveries in
creased over the previous month
The gasoline tax was up almost
900; taxes on tires and tubes
and mechanical refrigerators showed
decreases, and some Of the other in