U.S.A. DEFICIT £77,000,000

Taranaki Daily News, 31 January 1931, Page 7

U.S.A. DEFICIT £77,000,000

ESTIMATE BY THE TREASURY. £160,000,000 LESS IN REVENUE. By Telegraph—Press Assn.—Copyright. Washington, Jan. 29. Air. A. W. Alellow, Secretary of the Treasury, testifying before the Senate Finance Committee, declared he expected a deficit at the end of the present fiscal year. He now estimated that it would be £77.000,000. The decrease in revenue for the year will aggregate £160,000,000.

SOME TARIFFS NOT HIGH ENOUGH

EFFORT TO AVOID BIGGER TAXES

The President, Air. Hoover, on November 15 formally admitted the likelihood of a Treasury deficit at the end of the fiscal year, and administration circles, it was indicated, had abandoned all hope of avoiding the imposition of higher income tax for the year. Mr. Reed; Smoot, the chairman of the Finance Committee of the Senate, alter a conference with Mr. Hoover, stated that the Treasury deficit would probably be nearly £37,000,000. He added that he could suggest no remedy, except the possibility that certain tariff .’ates were insufficiently high. It was understood that the (Gore!'iiment had been sounding business leaders regarding the feasibility of an issue of Government bonds in order to meet the contemplated deficit since the ambitious building programme in aid of employment could not be reduced. Mr. S. D. Fess, Republican member of the Senate for Ohio, intimated that there was a possibility of diverting the interest on foreign war debts, which had been used to reduce the national debt, to meet the current expenditures.