The Washington times., 1913-02-02

One OF the hardest problems which
confronts the Democratic leaders In
, Congress. and especially the Ways and
Means Committee Of the House, is how
| to meet the growing revenue demanded
by the Government.
1t is becoming clear that the appro-
prlations made by this session of Con-
gress will run close to the s1.lO0. 00O. .Geo
mark. The estimates for the next fiscal
| year are in excess Of that sum. That
the appropriations will be greater than
at any previous time N the country's
! history is probable
Various reasons exist for this One is
tnat the Democrats. last year, with an
eiecton coming on, sought to dam Up
the appropriations. Another reason Is
That the Government Is growing AMI
its expenditures cannot be held down.
Ihe passage this session or both a pub
lie building bill ano a rivers and har-
greatly.
The fact of enormous appropriations
Is apparent. and is admitted by every
pody to be fact. But iile hard nut TO
crack is where to get he revenue to
meet the appropriations.
II Is over this knotty problem that
Leader Oscar Underwood and his COM
peers on the Ways ami Means Commit
zee are scratching their heads. They
VII! probably lose considerable sleep
nights over II before they get through.
Customs Revenue.
One Of the most interesting phases
Of this problem deals with the customs
revenue The Democrats are under
pledge to reduce the tariff and meet
the high-cost-of-living problem. II they
DO not do that, their lease Of political
life will be short
They must reduce the duties and at
the same time they want TO raise as
much, IL not more revenue, from Gus
toms than the Republican regime has
done. They would like to be able to
raise more revenue and at the same
time relieve the public from the effects
Of the tariff on the necessaries of life
They must put certain of the necessities
Of life on the free list II they carry out
their promises
Under Republican rule. in recent
years, the tariff has raised about o
third Of a billion dollars a year. The
growing appropriations make 1t impera-
s reyenae from ahis source nSa fan es below tns
that figure In fact, II they keep up
with the appropriations they will prob
ably have TO increase the customs reve-
nue..
1t will not be easy to prove to the
public that 1t is relieved from the tariff
when the Government gets more money
out of the; tariff than II did before, but
the Democratic leaders take the ground.
OF course, that many of the present
rates are prohibitive of revenue and
that lower rates viii actually mean
more revenue.
Trouble Promised.
Still, there promises to be some en-
barrassment on this score IL the Demo-
cratic policy does result in more reve-
rue h,rf the ultimate consumer does nof
perceive Just where he is relieved
The income tax viii have TO be put
into force. This Is practically impera-
tive That Is, the appropriations are
growing 80 that some additional source
Of revenue must be found and Con-
gress viii be compelled to impose An
Income tax IL the amendment is rati-
fed. as there is thought to be no doubt
Il win be.
The income thax. however, will not
raise more than $50.000.000. as II is gen.
orally conceived of about the Capitol
This will help the men responsible for
production of revenue considerably. but
the rate Government appropriations are
growing makes IL clear that such a
drop in the bucket will not long avail
to meet the demands which Uncle Sam
is raising more and more clamorously
for additional money.
Working on Bill.
Congressman Cordell Hull of Tenne-
see is working on an income tax bill.
The favorable action of the West vir-
ginia legislature on the income tax
amendment means that 1t has been
ratified by thirty-five States. But one
more State is needed to complete rati-
fication and this is considered certain
to be forthcoming. Mr.. Hull proposes
to raise about s10o.00O,OOo. This would