AMERICA’S DEFICIT

Taranaki Daily News, 23 July 1931, Page 10

AMERICA’S DEFICIT

A BILLION DOLLARS.

PTkOBLEM FOR TREASURY.

It was officially admitted some weeks ago that the United States Treasury’s deficit for the fiscal year to May 26 reached £205,900,000. The “billiondollar mark” has thus been passed, and there is yet a month to run before the fiscal year ends. The country's financial situation, it is complained, is weakened by “doles” in the form of huge grant? from tho Treasury to pay soldiers’ bonuses. The payments to men who served in the World War already exceed £200,000,000 and applications for further loans on soldiers’ insurance certificates still pour in at the rate of 35,000 a week.

The Treasury is reluctant to pay sp much, bitt the ex-soldiers are well organised i'or raids on the public purse, backed up by their votes. Nearly 2,000,000 ex-service men —about half tho American survivors of the World War —have filed applications. According co a message from Washington, the Government’s economy plans include the reduction of the £4,000,000 a year paid as mail subsidies'to American shipping by £1,000,000. Such a curtailment would mean that half a dozen or more steamship companies still controlled by the Government would remain on its hands. A Government tax on petrol and the restoration of that on motor-cars are reported to be contemplated by tie Treasury amongst other means of overcoming the Treasury shortage, buck taxes are said to be regarded with greater favour than the suggestion that : ore persons should be required to pay income tax by reducing or eliminating Ihe present exemptions below £3OO iqr a single person and £7OO for one who is married. The Government will avoid, however, if possible, any change in the’ income tax law before the Presidential flection takes place. It is suggested by the I anti-Prohibitionists that, if Congiess would legalise the sale of alcoholic beverages, the resulting increase in Government revenues would more than wipe out the Treasury deficit.

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