Washington, Sept, 17.
Mr, Andrew, W. Mellon, the Secretary of the Treasury, to-day wa working on increased taxation proposals in the event that President Hoover decided that increased tax-'¢5 will be necessary to meet the federal deficit of nearly G.$1,000,- 000,000.
Secretary Mellon is also proparing estimates designed to show the effect of whatever tax increases are In view of next year's Presiden tial elections and the efforts of the Administration, to restore confidence in the economic prospects of the country President Hoover and the members of his Cabinet had hoped to be able to avoid increases taxation, But in view of the me lereasing deficit it is apparent 172) tax increases will be necessary, Senator Johnson insists that Pre" sident Hoover's war debts moratortum plan is only, the beginning of programme which will lead up efforts to bring about the cancellation of all war debis, The situation is further com plicated by the fact that the bankfers ave demanding that President Hoover's reparations moratorium be extended from the period of one year now in fore to possibly as much as five years.
President Hoover so far is deter mined to stand on the one year programme but he is beset not only by the pleas and. pressure brought by the bankers but by the attacks ofthe breconelabes in the Senate who oppose war debte cancel that who hal the motatgtm merely a means to. that ando United Press,
Text read from the printed page and cleaned; old type leaves the occasional error.