THE CABINET: Pin Money Besides

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Brigadier General Lord, Budget Director, who announced six weeks ago that the Treasury would probably have a deficit of $180,000,000 on June 30, changed his estimate. He just announced expectation of, not a deficit, but a surplus of $60,000,000.

Hardly were the words out of his mouth when Secretary of the Treasury Mellon raised the "expectation" from $60,000,000 to $125,000,000. The cause of the change from a deficit to a surplus is, in part, economy on the part of Government departments, but even more so, an unexpected influx of revenue. The income tax quarterly payments due March 15 exceeded the expected $400,000,000 by $63,000,000. In addition, the tariff receipts calculated at $500,000,000 for the year, are now estimated at least $40,000,000 in excess of that amount.

Beginning with the fiscal year of 1921, the budget has included as regular expenditure the sinking fund and other provisions for retiring the public debt. Something over $400,000,000 was paid out annually in 1921 and 1922 for this purpose. This year sinking fund and other debt retirements will amount to about $405,000,000.

So in addition to paying its way, and retiring $405,000,000 of debt, the Government may expect to end the fiscal year on June 30 with from $60,000,000 to $125,000,000 of pin money in its pocket.