THE CABINET: Record Surplus

THE CABINET

At the close of the fiscal year 1926-27, the U. S. Treasury Department reported a surplus of $635,809,921—which was $130,000,000 greater than the previous record surplus of 1924. During the year the public debt was reduced by $1,131,309,383, leaving a public debt of $18,511,906,931 still outstanding.

The announcement of the record surplus was accompanied by the caution that many income items will not recur, that next year’s surplus should not be judged by this year’s, that tax reduction should not be too radical. At the next session of Congress there will doubtless be a conflict between enthusiasts who want to slice some $500,000,000 from the national taxes and conservatives who feel that a cut of even $300,000,000 is unsafe.