Evening star., 1914-08-08
loss IN IMPORTS
BY EUROPEAN WAR
Leader Underwood Estimates
the Cost to Be Borne by
United States.
IMPOSITION OF "WAR" TAX
REGARDED AS NECESSARY
Plan to Meet Annual Diminution of
Revenues Amounting to More
Than 100000, 900.

That the European war is 10 cost the
United States from Slco0oo,0W TO s1Jo,-
UO.1o year for several Years through
loss In import tariff collections is the es
innate made by Representative Oscar W.
Underwood. chairman OF the House ways
and means committee
Leaders in Congress who have kept a
close eye the European conflict and
it's economic effect on the United States
are agreed that with the United States at
peace with all the world. u war tax
must be imposed to meet existing condi-
tions.
Chairman Underwood said that mani
testify plan to raise this revenue. ordi-
narily supplied by the internal revenue
collection, must be devised
Just what form this war or emer-
gencv taxation will take, Mr. Underwood
and the other leaders were not prepared
to say. but the general opinion prevails
that il will consist of A stamp tax similar
to that imposed during the Spanish
American war, though 1t probably VIII
not be as extensive.
Measure Classed as Necessity.
1t is Mr.. Cnderwoods opinion that the
emergency taxation which will be pro-
vided for by the present session of Con
gress vii, apply during the rest of the
present fiscal year. and will be followed
by legislation for increases in direct per
sonal taxation for the next eight and
possibly ten years. The European war.
to put il another way, will cost the peo-
pie of the United States. according to
the best expert calculations at this time,
in the neighborhood of S1,O0o,0oU,O0o.
Collections from import duties now are
virtually at a standstll at every custom
house in the country. Mr. Underwood
said he expected lne loss of revenues to
be more or less permanent. For that
reason it will need "A permanent bolster
ing up and a revising of the revenue
laws in order to meet that situation.
But just at present, before any of the
belligerents obtain control of the sea, the
loss in revenue is particularly heavy and
that will need a special temporary war
tax of some kind to recoup the Treasury.
No Need for Haste.
There is no particular hurry about
passing an emergency taxation BILL" said
Mr.. Underwood, for the Treasury at this
time is in good condition. But before
this session of Congress adjourns We will
have to pass some sort of a measure.
The situation is too confused now for us
to know how to act scientifically. But
the delay which we will have while the
trust bills are in the Senate ought to
give the situation time to clarity and
allow US the opportunity to estimate ac-
curately what our revenue losses are to
be. l expect the revenue bill to be pass
ed just before the final adjournment"
The majority leader made it clear that
neither of two revenue producers will be
employed. The government will not issue
bonds to meet the present emergency and
the permanent decline in tariff collections
will not be met by an amendment to the
Underwood tariff bill. Bond issues are
not popular with the democratic leaders.
They are not regarded as good politics.
1t would be possible. of course" said
Mr.. Underwood. 'for the government to
recoup some of its losses by selling the
remainder of the Panama canal bonds.
The President has something like
$3.50, 100000 of these bonds. as | remem-
Der. still unsold. But I do not expect
that this will be done. There are plenty
of other ways for the government to in
crease its revenues TO meet an emergency
like this
The European war has completely up-
set the revenue calculations of the franz
ers of the present tariff law. Mr.. Cnder-
wood thinks that the upset will remain
of permanent nature, since, after an eN-
hausting conflict among the great export
ing nations of Europe it will take many
years of rehabilitation before their indus
tries will again be able to manufacture a
surplus for export.
our customs revenues last year
amounted to $3.50. coo, approximately. Il
said the democratic. leader. While | am
giving a pure guess. without any SUD
sanitation b. statistics. | should imagine
that for the next few years this revenue