U.S.A. DEFICIT

Hokitika Guardian, 17 November 1930, Page 6

U.S.A. DEFICIT

HIGHER INCOME TAXES. (United Press Association—By Electric Telegraph.—Copyright.) AVASHINGTON, November 15. President Hoover has formally admitted the Ijkelihood of a Treasury deficit at the end of this financial year, and the Administration circles h«.ve Indicated they have abandoned all hope of avoiding the imposition of higher income taxes for the present year. AVASHINGTON, November 15. Senator Smooth, the Chairman of the Senate Finance Committee, following a conference with President Hoover, stated that the United States Treasury deficit would probably total 180 million dollars. Senator Smooth added that he could suggest no remedy, except the possibility that certain of the tariff rates were not sufficiently high. It is understood that the Government will be sounding out business leaders relative to the feasibility of an issue of Government bonds in order to meet the contemplated deficit. Since the ambitious building programme to aid unemployment cannot ho reduced at the present time. Senator Fess has intimated the possibility of diverting the interest on the foreign war debts to America, which has hitherto been used to retire national debt, to current expenditure.