AMERICAN BUDGET

Southland Times, Issue 20202, 13 June 1927, Page 8

AMERICAN BUDGET

ECONOMY ADVOCATED FLOOD RELIEF EATS INTO SURPLUS PHENOMENAL PROSPERITY OF NATION (By Telegraph—Press Assn.—Copyright.) (Rec. 5.5 p.m.) Washington, June 11. President Coolidge in his budget address to Congress emphasised the necessity of holding down expenses if a material tax cut is to be realised, while the Republican Senators urged the previous cut amounting to three hundred million dollars. President Coolidge estimated that the figure will be nearer two hundred millions owing to demands on the Treasury for flood and farm relief. The President declared that the figures, which are superficially encouraging, will be affected by the collection failures of incidental items. Unquestionably he said, “the nation is enjoying a period of the greatest prosperity. We must nevertheless remember that the present affluence is due to a sound financial policy, which should serve as an example to other nations.” The President stressed the fact that the failure of the Mellon-Berenger agreement necessitated the revision of the Budget under the heading of “debt retirement.”—A. and N.Z.