Evening Star Newspaper, July 1, 1927, Page 3

CONFIDENCE SEEN - INU. S FINANCES Treasury Heeds Call for Tax Cut Next Winter—War Debt Reduced. £" DAVID LAWRENCE. Altnough the administration hesi- tates to make any promise about the future, there is no question that the fiscal vear which has just c.ded has brought out a feeling of confidencs ahout the Government’s finances which is significant. Apprehensive that the school of thought which believes in spreading the retirement of the public debt over a period of 62 years might gain the upper hand, the Treasury hasmanaged by means of Democratic as well s regular Republican support to with- stand any such maneuver, and the bhooks have just been closed, with every cent of surplus. and general bal that were available being used to re- tlie the public debt. Kevenues Are Safe. x reduction, which looked for a while as if it would disturb that pro- gram, was successfully held in abey ance, and now the Government knows that when Congress meets in Decem- ber and passes a new revenue act next Winter it cannot affect the revenues to be re the Tre: ury between now and next January, which represents half a fisca and can cut down only the revenues 1o be received from next January to June. While there is necessarily a good bit of uncertainty about the amounts of money needed to take care of the Mississippi flood problem and the added requirements of public build- ings, as well as unforeseen needs, there is bope that the Geneva Con- ference will succeed in limiting naval armament so that one source of add- ed expenditure will be avoided. As for the exact amount of money that the Treasury can afford to deny itselt by means of another tax reduction, there is no one who can tell at this date, though the probabilities are that . about $350,000,000 can. be safely cut from the Nation's tax bill, and possi- bly more. The drive will not he so much on the change of rates for individual incomes, but on the modi- fication of the indirect taxes, W now affect more individual vot; the personal income returns. More than half of the tax receipts come from indirect taxation, and the oppor- tunities to show how the cost of pur- chases by the consumer are affected are, of course, numerous. Saving in Interest. Economy is again the watchword throughout the Government depart- ments, but it is growing more and more apparent each year that with a total expenditure of about $641,000,- 000 for civil administration out of a total of more than three and a half billior: of expenses for war debt inter- est, sinking fund requirements, pen- gions, veterans’ compensation, etc., the biggest economies can only come from cutting down the interest. charges on the public debt. The Treasury esti- mates that it saved $36,000,000 in in- terest charges this year by applving all the surplus available to retirement of the principal of the war debt. Borrowings by the Treasury have been managed at low rates of interest, =o there is a saving accomplished in refunding war loans as they mature and even before they fall due. The refunding process has increased confi- dence in the Government’s inherent financial strength and has kept at bay ‘efforts to interfere with the retirement of the public debt. But the demand for tax revisfon will be heeded next time, indeed the Treasury now is get- ting ready its recommendations for presentation informally to the ways and means committee, which is to con- vene at the end of October. The new fiscal year begins in an atmosphere of satisfaction that though less than nine years has passed since the end of the war, the United States has cut off more than eight billions of its public FINANCIAL SURVEY IS MADE BY MILLS, TRACING SURPLUS (Continued from First Page.) $1,982,000,000 in 1926 and as against an esiimate of $2,190,000,000. As already stated, the increase over the estimate is accounted for by increased collections of back taxes over earlier expectations, Yield from Customs. “Customs yielded $605,000,000, as compared with an estimate of $616,- 000,000, which loss was more than madce good by receipts of $644,000.000 from miscellaneous internal revenue, as compared with the estimate of $619,000,000. In 1926 customs receipts 9,000,000 and miscellaneous internal revenue $855,000,000. “Miscellaneous receipts aggiegated 000,000, as compared with an estimate of $600,000,000 and a vield last year of $545,000,000. The increase over the estimate is entirely accounted for by one item. It was estimated that approximately $32,000,000 would be received from the railroads in dis- charge of their obligations, includinz interest payments, as compared with $36.000,000 in 1926, whereas approxi- mately $90,000,000 was received. In this cennection, it should be noted that the indebtedness of the railroads to the Government is rapidly being liquidated and that receipts from this source can not be anticipated in any large amount after the fiscal year 1929 s “All told the total ordinary re- ceipts of $4,129,000,000 are $102,000,000, or 2.53 per cent over the estimate. While there were, of course, a number of minor increases and decreases, which largely offset each other, two items account for the increase of $102,- 000,000, namely, under the taxation head increased collections of back tax- es, and under the head of miscel- laneous receipts an excess of $57,000,- 000 receipts from the railroads over the anticipated amount. It is signifi- cant that both these items fall in the class of resources that cannot be con- sidered of a permanent character. $167,000,000 Is Increase. “Total ordinary receipts in the fis- cal year 1927 of $4,129,000,000 as com- pared with §$3,962,000,000 for 1926, show a total increase of $167,000,000 for 1927. The principal items of in- crease in 1927 were §26,000,000 in cus. toms receipts: $32,000,000 in internal revenue receipts; $11,000,000 in for- eign repayments; $53,000,000 on ac- count of railroads; $29,000,000 from Federal Farm Loan bonds and other securities, and $16,000,000 net from other miscellaneous receipts. “Total expenditures chargeable against ordinary receipts, amounting to $3,493,000,000, were $150,000,000 less than the estimate. The difference is accounted for by $20,000,000 of ex- penditures postponed because of the failure of the second deficiency bill, a $35,000,000 decrease in tax refunds due to change in the revenue law, the revision in the amount chargeable un- der the head, ‘Debt Retirement,’ ne- ecessitated by the non-ratification of the French settlement, and the re. mainder to reductions in other ex- penditures. ot “The $20,000,000 resulting from the failure of the second deficiency bill to pass and the §35,000,000 decrease in tax refunds do not represent actual savings, but merely postponements. The revision of the estimate of the amourt chargeable to debt retirement from foreign repayments is of a book- keeping character and does not actu- ally affect the rescurces of the Gov- ernment available for debt retirement. “Total expenditures chargeable against ordinary receipts, compared with 1926, show a decrease for 1927 of $91,000,000. This difference is, of course, a net figure of increases and decreases. The principal items of the increase are $31,000,000 in gen- eral expenditures and $32,000,000 on account of the sinking fund and other debt retirements chargeable against ordinary receipts. The larger items of decreases are 345,000,000 for inter- est payments, $72,000,000 on account of customs and internal revenue refunds, $12,000,000 less in postal de- ficiency charges, $10,000,000. decrease on account of charges for civil serv- ice retirement fund investments, which under present procedure.ap- debt and has eighteen and a half bil- lions outstanding. (Copyright, 1027.) PUBLIC LIBR'ARY CHANGE. The Public Library today announced that, beginning July 6, the library will remain open ever Wednesday until 9 p.m. This resumption of customary hours results from the provision for service made by the Congress in the appropriation act for 1927-28. The shortened hours on _ Wednesdays originated as a war-time emergency measure. ‘The longer hours will*be in force at the central building, Seventh and K streets; the Takoma Park branch, Fifth and Cedar streets; the South- eastern branch, Seventh and D streets southeast, and the Mount Pleasant branch, Sixteenth and Lamont streets. SHOT, FLEES POLICE. Undeterred by a bullet in the leg, fired by a policeman from whom he had | 0! broken away, John Robinson, 18-year- old colored youth, 304 E street south- west, succeeded in eluding his pursuer, although he was later arrested at his home. Robinson was wanted on suspicion of having been implicated in thefts of accessories from automobiles. Police- man W. H. Hall of the fourth precinct, arrested him yesterday evening near Potomac avenue and South Capitol street. The prisoner wrested free and ran. The policeman shot at him, the bullet hitting him in the leg. He kept on running, but was later arrested at his home and ie held for investigation. SPECIAL NOTICE. NOT BE RESPONSIBLE FOR racted by anvone other than my- PH_F._FRYE. 2° I WILL debts cont self. RAL 7 WILL NOT BE RESPONSIBLE FOR ANY gebls contracted by any other than myself. TO WHOM 0 certify that on this 1027, that John A. Vall Je jus o presen signed on 920 Ne PAPERHAN —ROOMS, ND painting and plastering at teasonable pri ‘all_any time. Adams 9303, : A MILLION-DOLLAR —oprinting_plant equipped to handle every King of printing job, The National Capital Press ’zlfi!llz D _ST. N.W. Phone_M. 650 B'YNE“EB DISAPPOINT RON S. ADAMS PRINTING IN A HURRY High grade. but not hizh priced. b e Tin S Nw.” or partnership are herewith notified t the office of the under- July 5th, 1927, L & SON ‘W, Main 3 Practical roofers are here—ready to ake repairs and apply a heavy coat of rotec-Tin Roof Patnt—pure oxide of iron and linseed oil. Estimates' {ree. KOONS Heofing 119 3rd St. S.W. N e O Y T pear under general expenditures, and other ~items aggregating about $15,000,000, “The increase of $102,000,000 in re- ceipts and the decrease of $150,000,000 in expenditures over and under the figures estimated last Fall resulted in a surplus of $252,000,000 in excess of the estimate; $611,000,000 of the sur- plus has already been applied to the retirement of public debt obligations and is not available for tax reduction or any other purpose; $24,000,000 has been carried over as an increase in the net balance in the general fund at the close of the year over the balance at the beginning, and will be used for debt-retirement purposes early in the fiscal year 1928. “More than one-half of the surplus of $635,000,000 is due to receipts on account of disposal of capital assets, back tax collections in excess of tax refunds and other items of a fast-dis- appearing or non-recursing character. From latest figures now available, back tax collections will exceed $300,- 000,000, and collections on account of capital stock tax of corporations, now rggealed, will amount to over $7,000,- “Deducting from the aggregate of these amounts the sum of $117,000,000 paid for tax refunds, leaves a net halance of $190,000,000 in revenue from this source. The work of the Internal Revenue Bureau is fast becoming cur- rent and while some net receipts on this account will continue to be real- ized, it is expected that after the fiscal year, 1929, net receipts from this source will be negligible. Receipts from capital assets on account of rail- roads aggregated about $90,000,000; from Federal Farm Loan bonds and other minor securities, $63,000,000; and from the War Finance Corporation, $27,000,000. “All of the Farm Loan bonds owned by the Government have been repur- chased by the Federal Land Banks, so that no further receipts from this source will occur, while receipts on account of railroad securities in ap- preciable amounts will disappear in a relatively short period of time. The War Finance Corporation has pruc- tically completed liquidation of its assets, the proceeds of which have been deposited in the Treasury. It will be apparent, therefore, that with- out these special and non-recurring items which aggregate $370,000,000, the surplus would have been about $265,000,000, of which a considerable part is to be attributed to decrease in expenditures, some of which repre- sents a postponement rather than actual saving. Public Debt Cut. “The total gross debt at the close of the fiscal vear amounted to $18,511,- 906,931.85, as compared with $19.643.- 216,315.19' at the close of the fiscal year 1926, or a decrease of $1,131,309,- 383.34. Of this reduction, $519,554,- 844.78 is to be attributed to the sink- ing fund and other debt retirements chargeable against ordinary receipts and $611.754.538.56_to_debt_retirement BOOKS WANTED All Kinds—Any Quantity BRING THEM IN Or Phone Franklin 51166194 BIG BOOK SHOP—933 G See Kleeblatt for Shades & Screens FLAT -TIRE? Ho makes them 1o measure at factory RUEEBLATT o & Window Shades and Screens. Phone MAIN 500 LEETH BROTHERS POLIGEMEN GIVEN PROMOTIONS TODAY Eighteen Take Oath, With Two Unavoidably Absent. Maj. Hesse Speaks. Eighteen of the score of members of the Police Department concerned in the changes that became effective today were sworn in at police head- quarters this morning by Maj. Ed- win B. Hesse, superintendent of police. The absentees were R. L. Jones, ad- vanced to the rank of detective sergeant, and Jesse R. Birch, terred from the crossing to the reg lar force. Jones was in Virginia at the bedside of his sick mother, while Birch is a patlent in a local hospital. Those who appeared and took the oath and the new positions they will fill were Capt. W. G. Stott, Lieut. L. I. H. Edwards, Sergt. Thomas Mc- Grath, Detective Sergts. Jacob Wolf, E. E. Thompson, L. M. Wilson, H. I. | Ogle, W. J. du Busky, Lauritz Christ- ensen, J. C. Collins, T. J. Sullivan, T. A.' Fitzgerald and John A. Foley: Precinct Detectives J. W. Wise, R. L. Jones, J. F. Flaherty and N. S. Hod- kinson; John J. McDonnell, from crossing to regular force, and George F. Washburn, from regular to cross- ing force. Makes Brief Address. When the men assembled Maj. Hess told them he expected a faithful, loyal and conscientious performance of the duties imposed upon them. They had been promoted solely upon from the surplus of receipts over ex- penditures. “The annual interest rate on the interest-bearing debt on June 30, 1926, was 4.09 per cent, as compared with 3.96 per cent at the close of the fisca vear 1927. This is the first fi year in which the average interes rate has been below 4 per cent since the close of the World War. “Total {interest payments in the fiscal year 1927 were $787,000,000. In- terest payments in 1928 are estimated at §720,000,000, or a reduction of $67,000,000. “In the fiscal vear 1927 the regular 'mnl‘urltles of the debt on the quarter- v tax-payment dates aggregated $1,- 908,208,000, at an averunegnlnlersest rate of 4.157 per cent. New secur- ities issued on the quarter days aggre- gated a par amount of $1,341,833,000, at an average annual interest rate of 3.328 per cent. The reduction in in- terest computed on an annual basis on the amount of the new securities issued as a result of this reduction in the average interest rate amounts to about $11,000,000. $23,000,000 Net Decrease. “The net decrease in the interest charge computed on an annual basis due to all refunding operations at lower interest rates concluded during the fiscal year 1927, is §$23,000,000. “During the fiscal year just closed the Treasury undertook the neceszary financial operations looking tc the early retirement or refundi. of $3;- 104,690,000 of Second Liberty Ican bonds outstanding on February 28, 1927. On June 30 the amount out- standing had been reduced to approxi mately $1,276,000,000, after taking into consideration accepted exchanges not yet cleared through these accounts.” The amount of Second Liberty bonds which were offered for ex- change for the new 3 3-8 per cent Treasury bonds of 1943-47, Mr. Mills announced, totaled approximately $243,000,000, according to reports from the Federal Reserve banks. Exchange subscriptions placed in the mail or otherwise ip transit by last midnight, he.said, will be accepted. i Child’s one-strap patent leather with dull gun- metal calf strap. Sizes 8% to 12. Boys’ sturdy dress ox- ford of high-luster tan calfskin. Rubber heels. Sizes 1 to 6. $5 “KEDS” Full range of sizes. quarter and high. No Sum mer vacation is without a pair. 5 STAR, WASHINGTON, D. C. FRIDAY, merit, Maj. Hess told them, and he ex pected them to continue their meri- torious service. The men promoted to positions of detective sergeants, Maj. Hesse stated were placed on probation for a period of six months, and he hoped at the end of the probationary period to re- ceive reports that they had lived up to the degree of efficiency they had maintained in the past. Already in Charge. Capt. Stott already has taken charge of No. 14 precinct, displacing Lieut Jeremiah A. Sullivan, who served as acting captain there the past two years. Members of 14 precinct com- mand will present a floral tribute to Lieut. . 10 police station at 7 o'clock toni; The KNOWING MOTHER WILL HAV YOUR GO00D TASTE weather food. ASK FOR BOOK. POTOMAC 4000 Pennsylvania Aven You Are Invited to Inspect Our Plant at Any Time Half Living? Get the Fullness Oul 7 2% MONEY. Go to Burleith Today ces $9,100 to $13,750 Terms That Never Fail SAMPLE HOME P: 0 TO REACH— Drive over Q Streec Bridge 10 29th. north, biock to R 7% Saturday —is Childrern’s Day .at Berberich’s THE kiddies will enjoy themselves, as never before, when you bring them to the Mezzanine Floor at Berberich’s. And they naturally take to. the finer qualities of PIED PIPER SHOES because even the youngsters know what a difference appearance and comfort can make in footwear Expert fitting is a matter of tradition at Berberich’s. Have it delivered regularly to your home. Working for a Landlord Is Half Living With the Ownership of a Home in BDURIETH It Is Simply Turning Rent Money Back Into YOUR Pocket ®ou live BETTER, CLEANER and LONGER and equally as VITAL—IT COSTS LESS SHANNON:- & LUCH JULY 1, 16 BOY TENNIS WINNER. Frank Shore, 15 years old, defeat- ed Dave Legum, also 15, in the finals of the boys' elimination tournament of the Washington Center of the Mid- dle Atlantic Tennis Association on the Chevy Chase Club courts this morning. Straight 6—: Both Shore and Legum will repre- sent the Washington Center in the first Middle Atlantic Association tournament at Richmond July 8 and 9. this honor going to winner and runner-up. Play for the junior honors was to b2 decided this afternoon. Milton Baker and Eddie Yoeman were the contestant; sets decided, 6—4 and NO OTHER Chestnut Farms Cottage Cheese appeals to every one’s good taste. 1t is a wholesome, economical hot- LET OF RECIPES ue at 26th St. N.W. § t of Life That Comes ic———jol——loj]c———[al———[alc———|c———|n]——|a| ———[n| ——=|a| c——= o[ ——| 1703 37th BUILT BY Child’s two-tone sport oxford with crepe rub- ber sole. Sizes 8% to 12 $4.50 Special compo tion sole. Sizes 1 to 6. $5 ke Pied Pper leads the rats W complete erberichly TWELFTH=<F 8T8 TOTS Very flexible Junior Blu- Sewn welt. Soft elk Sizes 2 to 7. $2.50 cher. ‘leather. = [ afe————nje———|nfin|e———a I l——]a ] | SPECIALS for the HOLIDAY Notice—OQur stores will be closed call dey Mon- ] day, July 4th. FRIDAY end SATURDAY MEAT SPECIALS!! FRESH KILLED PRIME RIB Frying or Broiling ROAST OF BEEF CHICKENS w 37c . 27c Fresh r% Veal Cutlets. . . . .Ib., 45¢ Killed Steu.;ing Chickens .1b., 33¢ Leg of Spring Lamb . . .1b., 37¢ Fresh Ground Beef . . . .1b., 23¢ Lean Boiling Beef . . .lb., 12V:c | Tender Sirloin Steak. .1b., 43¢ FRESH FISH Fillet of Haddock 6.23c | Halibut . . . . lb., 33¢ Spanish Mackerel 16.20c | Perch. . . . . Ib., 18¢c Trout . .. . Ilb., 18c | Butter Fish . . lb., 18¢c Cicakers . . Ib., 12Y2c | Cod Fish . . . Ib., 18c These prices are effective in the stqres listed below 2922 14th Se. NW. 1400 12th St. NW. 25 Laurel Ave., Tak. 3000 Conn. Ave. 3311 Conn. Ave. 5542 Conn. Ave. 653 8th St. N.E. Battery Park, Md. Lycn Village, Va. In additicn to these we have the following special meat prices in all of our stores: Loffler’s Swift’s Sugar Cured | Circle S Brand 4 PremiumHams Lunch Rolll HAMS | CALAS 6. 31c 1. 33c | 1. 27¢ | v 18¢ NEW CROP EARLY JUNE APPLES, 3 v 20c In All Stores by Saturday Morning ESTABLISHED 1859 Swift’s Swift’s NEW Potatoes, 5 L. 17¢ T R HEINZ OVEN-BAKED BEANS Fancy Quality Plain and Stuffed OLIVES 3om23c| 37w 25¢)| mue 10¢ 2 No. 6 Crown Brooms =29c SUNSHINE BISCUIT COMPANY Honey Jumbles ROYAL Fruit-Flavored GELATINE DESSERT Assorted Flavors Camel—Chesterfield—Piedmont Lucky Striké—Sweet Caporal U\ CIGARETTES Sin. Phg. Carton of $ I _-_l_-? Lge. Pkg. Delicious Strawberry, Orange and Vanilla Iced Cookies . 22¢ Pound 8C Ten Large 121/2C PINT Regular and JAR Pale Dry Nu-Grape And Other 5c Drinks Coca-Cola, Orange, etc. 6 Bottles ZSC D::‘-u Lemons .7 juc, ‘Fancy Red.Plums Dez., 15c | F resh Tomatoes 2 Lbs., 25¢ Doz., 15¢ | Carrots and Beets, Bunch, 44:c PEACHES Sowega Brand, the Pride of the Doz. 23 C M PICNICSET | High Rock 6 large plates, 6 small plates, Sweet or Sweet Mixed YUKON CLUB R 8c N. B. C. 5¢ Cakes. .....2 pkgs., 9¢ Libby’s Vienna Sausage........13c . Kraft's Cheese “"fisns™ V5 lb., 20c Libby’s Lunch Tongue, ¥;s.....28¢c Gibb’s Jelly, 3 glasses. .........25¢c Underwood’s Deviled Ham. 8¢ Del Monte Peaches, tall can. ...15¢ Del Monte Sardines ™ fomo 15¢ Kipper Snacks 3 tins, 20c | BASKETS, each. 12c Beverage Bottle, 15¢ Ased in Wood—Light or Dark| " CTTCOUOT CLUB Regular and \ & FRESH FRUITS and VEGETABLES California Apricots Red Ripe Fancy Ripe Hiley Belles b Heinz 2 Ginger Ale 5 25-Piece T 6 spoons, 6 napkins, 1 paper Likby’s Potted Meat, Yjs. .....4%c Fresh Roasted Peanuts . . .2 Ibs., 25¢ Libby’s Assorted Ham. A7Y%c Pimento Libby’s Corned Beef, 1-Ib. tin...28c Del Monte Cherries s 12%¢ Blue Peter Sardines dive%i 121%¢ Paper Napkins, pkg...........8%¢c Small Fillet Canada Dry 5 Bottles 23(.' Depesit Regiieiond 1 Ve i Thin Skin Doz., 25¢c | Green String Beans Lb., 10c Fancy Freestone W l atermelons BANANAS Ul 41 25¢| 59c =i 65¢ Contains— Large Bottle 8%c Df:;’n‘l PIC ES tablecloth. Deposit Uneeda Biscuits. .. .....2 pkgs., 9¢ Libby’s Meatwich Spread. ......12¢c Gelfand’s Mayonnaise, jar. .....25¢c Libby’s Veal Loaf. .. 0 Peanut Butter, 16-0z. pail.......23¢c Libby’s Roast Beef............28¢c Del Monte Peaches, buffet size, 10c Portuguese Sardines &i.'6h 12%2¢ Wax Paper, pkg.. TVsc of Herring 4 -Drur A Abner y Ginger Ale Deposit ATLANTIC & PACIFIC % €o. THE GREAT i———loi——2lal——ale———]o|————|a| ——=aH1|a| ——=|o|—=|o]———|o|]c———=ald B