Manawatu Daily Times America’s Revenues

Manawatu Times, Volume LV, Issue 7294, 2 August 1930, Page 6

Manawatu Daily Times America’s Revenues

Just when New Zealand along with other Dominions the Motherland is struggling with huge deficits and faun e crushing burdens of taxation, it may not he altogether pleasant to read that the United. States of America is basking in the sunshine of a surplus for the fiscal year just ended of 200,000,000 dollars! In a land where millions are part of the everyday vocabulary even of school children these figures may seem to be mere 'commonplaces, and of course when they are reduced to pounds sterling their impressiveness diminishes considerably.

Nevertheless, the fact remains that we have here another painful reminder that while the British Empire staggers under its colossal war load the United States continues to increase its vast wealth. The Treasury books show that over four thousand million dollars were received in revenue. What would Mr. Forbes give for just one year at the receipt of Customs in Washington 1

However, there may be a grain of comfort to harrassed British and oversea financiers in the knowledge that even with such” a surplus Andrew Mellon, U.S. Secretary to the Treasury, is already worrying about a possible deficit for the current fiscal year. Congress has been spending money with a generous hand for the new fiscal year, which started on July 1. Sums to a total of about 4,500,000,000 dollars have already been authorised under appropriation bills, which is more than the revenue of the year just closed, and more than the expected revenue for the coming year.

Some of last year’s figures are eloquent in their revelation of the enormous wealth of the world’s greatest republic. Treasury officials had shaken their heads over the Wall Street deflation, believing it would seriously cripple income tax returns. But this fear was belied by the returns. With still some weeks to go income tax returns had totalled £2,404,000,000 dollars, or 80,000,000 dollars more than was collected in the same period of the previous 12 months. Before the Wall Street collapse Treasury experts had figured that income tax receipts would reach 2,480,000,000 dollars, but they knocked off some 80,000,000 dollars through the 1 per cent, reduction granted on corporation and normal incomes for 1929. Apparently the Wall Street crash affected only a proportionately small number of the several million income payers—at least in 1930—for returns came up to advance Treasury estimates.

Other big items on the Treasury’s income side were 583,2(5,000 dollars in Customs, and 100,000,000 dollars on waxdebts in the yeai\ The first item had been stimulated in the last few weeks by the last-minute rush to get goods in before the new tariff took effect.

Andrew W* Mellon, Secretary of the Treasury, has indicated a possible deficit in 1931, due to the large expenditures for public buildings, the pending appropriations in Congress and the national decline in income resulting from the existing business depression.