Evening star., 1914-08-13
McAdoo, Simmons and Under
wood Agree on Scheme to
Replace Customs Losses.
LIKELY TO INCREASE RATE
ON BEER AND TOBACCO
Bank Checks, kilograms and Other
Papers May Be Required to
Garry Revenue Stamps.

"A bill designed to raise 1900, 900 by
a new internal revenue tax will be framed
and introduced IN the House as soon as
possible" said Senator Simmons. chair.
man of the finance committee, today, fol
lowing a conference with Secretary OF
the Treasury McAdoo and Representative
Underwood, chairman Of the House ways
and means committee.
Senator Simmons said it was determined
that such a tax was necessary to Offset
the loss of revenue from the customs
due to the falling off of imports since
the European war began.
I'VE do not want to wait until there
is deficit In the Treasury before acting. -
continued Senator Simmons. "It is abso-
lutely necessary that the confidence OF
the people in the financial soundness OF
the government be maintained in a time
like this. 1 expect to confer with Mr..
Underwood during the day. and the
get to work Immediately framing bill.
An Internal Revenue Tax.
Senator Simmons said that it had
been determined not to touch the tariff
but to conflne the tax to an internal rev.
enue tax. He said that there had been
should be taxed, but that until the House
committee decided upon these articles he
thought It unwise to name them. since II
might affect their market value. A taa
upon bank checks and kilograms. etc, he
said, was being considered.
II a war tax measure is to be intro
duced the House. it is claimed, is ready
for its reception, and the probability Is
the measure will be half way through
the House before the country knows
what is happening.
Just what internal revenue Will be IN
creased depends on the figures Of the
Treasury Department customs officials
who are calculating the loss Of receipts
from imports which have been cut of
from warning countries. The rank and
file of the House talks Of a round hundred
have to be raised to make up the deficit
in the customs.
The war zone in Europe is good for
s116,OO0.OOO customs receipts year. 1t
is safest to assume that this will be cut
off, say the Treasury experts. Germany
country, but it may happen that Eng
land, with its control of the seas. will
take up considerable of Germany's trade;
and Japan undoubtedly will hurry to
take advantage Of the situation.
May Double Beer Tax.
There is considerable talk about dou-
bling the internal revenue tax OF dol
lar q barrel on beer. This raised a
hundred million dollars under the Span
ish-American war tax.
Plans being informally discussed in
clude one to change the internal revenue
tax on cigars and tobacco to make 1t
an ad valorem tax instead of fat tax
on amounts, it being estimated that
about 10000, 600 could be raised in this
way. An increased tax on beer. accord
ing to estimates. would bring in $780, 900,
600. No change in the income tax could
be effective until after July /, 1915.
Figures have been prepared for Secre-
tary McAdoo on the income now annually
derived from the tax on beer. whisky and
tobacco, which may be used as a basis
for increased taxation to meet the ex-
pected loss in import duties.
The 81 a barrel tax on beer raises
$s5, 600; the $1.10 a gallon tax on
whisky, 1854, 10000: 8 cents pound tax
on tobacco and snuff, $35.O0O.0OO; the
81. Is to go tax per thousand on cigar
cites, $1SOOO.OOO and the 75-cent and 81
per thousand tax on cigars below and
above a fixed weight, brings in a little
less than $2A,O0O.OO0
Customs Fall Of.
The Treasury statement today showed
the customs receipts for the month of
August up to date aggregate $7.T66. 53S.
against s1O,2O5.0 .05s for the same period
last year, and that since July the total
has been $780, 755, ,OO3 about $1,000. 900 less
than during the first six weeks Of last