FISCAL: Wholly Speculative

Under the august initials of the Associated Press, the country was informed one day last week that "a substantial reduction in taxes, favored by President Hoover, will be recommended . . . by the Treasury, to become effective March 15. . . . While not predicting . . . the $300,000,000 variety, officials said it would be large. . . ."

The A. P.'s apparent source: Under Secretary of the Treasury Ogden Livingston Mills.

At his next press conference, Andrew William Mellon announced that this was news to the Secretary of the Treasury; it was premature, "wholly speculative." Under Secretary Mills protested he had been misinterpreted. The White House joined in the repudiation.

As of last week, U. S. finances looked as follows for the new fiscal year:

All revenues $4,200,000,000

Appropriated by Congress 3,971,000,000 Surplus 229,000,000

What the figures do not and cannot show is added expenses which Congress may vote; the appropriation of large sums already authorized, such as the $350,000,000 which the Federal Farm Board may call for at any time.