New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-08-11
FEAR A WAR TAX
IS INEVITABLE
Republicans Ascribe Need
of Revenue to
Tariff.
lFrom Tho Tribune bureau. J

Washington, Aug. ~. RepuollCah
members of the House heard to-day
that the Democratic majority regards
special war tax as inevitable, and that
tentative plans already have been
made for the enactment of legislation
before the session ends to recoup the
government for the losses IN customs
revenues incident to the falling oil OF
imports from Europe.
Ii is not the intention OF the Re
publican minority 10 obstruct the pas
sage of "war tax" legislation, but the
minority members will not overlook the
opportunity to remind the Democratic
tariff tinkerers that the Treasury would
be in more prosperous condition to-day
had protective rates been in effect.
Representative Payne, veteran pro-
tectionist and author of the law which
the Democrats threw into the discard,
chuckled to-day when he heard OF the
Democratic programme, which probably
will mean the levying of a special IN
ternal revenue tax on such articles as
whiskey, beer, tobacco, and cigars.
Checks, drafts and legal documents also
NAV be taxed if the revenue demands
justify such action.
inquire LntTe Is Il Ithoulg PANo
of about $90,000,000," said Mr. Payne.
This was accumulated under the old
protective rates and not under the
Underwood bill. As the Treasury
needs a working balance of about $780,
100000, there is comparatively little
left to withstand the falling off in the
customs receipts during the war period.
The Treasury would have been in bet
% hn
NAMED in effect. However, let the
Democrats 90 to it and find way out.
They are in control"
Mr. Mann, the minority leader, is
said TO have informed the majority
leader, Mr.. Underwood, that it is not
the intention of the minority TO throw
obstacles in the way of legislation
deemed necessary to replenish the
Treasury. Mr.. Mann broadly init
mated, however, that the Republicans
would, of course, reserve the right to
criticise the dominant majority and to
point out how the situation might have
been avoided under different sort of
tariff bill.
Republicans will point out that If II
were not for the income tax, which the
Democrats fortunately may fall back
on, the nations finances might be IN a
deplorable shape within few months,
As previously told in The Tribune
dispatches, Mr.. Underwood acknowl-
edges that the European war is sure to
cut heavily into the customs revenues
the amount of loss annually being es-
tlmated at from s100,000,000 to $780,
100000. Mr.. Underwood says there is
no immediate necessity for the enact
g
measure, but he admits that il the
European war gives promise of con-
tinuing for an indefinite length of time
amendments to the Underwood tarif
law will be necessary.
The majority leader says no definite
revenue raising plans have as yet been
evolved by administration leaders, but
the general belief is that, although this
nation is at peace, war tax" similar
to that employed during the Spanish
American War will be employed by the
Democrats with the wiping out Of the
accumulated Treasury surplus.
To aid the farmers of the Southern
States Senator Hoke Smith to-day sug-
gested that the Aldrich-Vreeland emer-
gency currency bill be amended to
make warehouse receipts for cotton
commercial paper within the meaning
of the act, in order that a portion OF
the emergency issue may 90 to the
South. Secretary McAdoo has sub
mitted to the Attorney General the
question whether such warehouse re-
ceipts may be regarded as commercial
paper. If the opinion is negative, an
effort will probably be made to amend
the bill to specify that cotton ware
house receipts may be accepted as col
lateral against the issue of the emer-
gency currency.