The Secretary of Treasury, Mr. Henry Morgenthau, testifying before the Senate Finance Committee to-day, estimated that the Federal Govern: ment's deficit for the 1996 fiscal year would be $5,968,000,000 and that the deficit for the 1937 fiscal year would be $275,000.00. He attributed the Increase of the deficit this year over last year almost entirely to the payments of the soldiers' bonus voted Congress.
The Commissioner of Internal Revenue, Mr. Guy 'T. Helvering, testified that, fall corporate earnings were distributed as dividends, me dividual. incomes would increase to the extent of $4,500,000,000, $4,000, 100,000 of which would be taxable.
Mr. Morgenthau urged the Senate to Insert into the new $803,000,000 tax Bill the processing taxes which were eliminated from the original draft by" the House of Representatives Weys and Means Committee. He said that, while the Government was at present able to finance the expenses of the New Deal by borrowing at Tow rates of interest, "a continuation fof this state of affairs depends upon scrupulous adherence to an orderly Programme looking to the balance of Federal budget as soon as possible, and, thereafter, upon a steady reduction of the public debt." The Seeretary approved the terms of the House
recessing taxes from its provi {sx Dil except for the absence of Mr. Morgenthau warned that higher levies on individual incomes could not be Justified until the Govern ment had plugged the loop-holes in the present laws, under which cor-parations have been able to evade taxes—United Press,
Text read from the printed page and cleaned; old type leaves the occasional error.