New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-07-26
Depleted Treasury Adds
to Work of Bettering
Army and Navy.
REVENUES SHOW
HEAVY DECLINE
Big Deficit Already This Month,
but President Must Meet
Any Emergency.

halOnHl defence with the secretary OF
War and the Secretary of the Navy he
will have to solve first financial prob
lem. The Underwood tariff law and
the war have reduced the revenues of
the government, and this. coupled with
the refusal of the last Congress to
economic despite prevailing conditions,
has made the matter of finance Of the
greatest importance
Money to make the army and the
navy adequate could be obtained by a
bond issue ot $500 1000. 600, but whether
the President will 90 that far remains
to be seen. There is little doubt that
the people would approve a bond issue
for this purpose in their present frame
of mind, and this may be the solution,
although it is understood that the in
creases in the army and the navy which
the administration has in mind will not
be on such a pretentious scale.
At present President Wilson has no
intention of calling Congress in special
session. Some Of his friends say he is
WI. ~ dAtAA A llt- ne mas no AOHRitNS
on his hands just now, for there is lit
tie doubt that the spread eagle
speeches Of members would complicate
the situation. It is barely a fortnight
since the President refused the request
Of Senator Kern 10 call the Senate in
special session in October to revise the
rules
To Prepare for Emergency.
Should another Lusitania incident
occur the President would have no
other alternative. The people would
demand that Congress be called and
the President would heed this demand
because IT would be practically unani-
nous.
The conference between the Presi-
dent and the Secretary Of War and the
Secretary of the Navy is an indication
that the President considers such an
emergency possible and that he wants
TO know just what conditions are, al
though not long ago he declared the
navy adequate. Unless more American
lives are sacrificed by German sub
marine commanders, however, il is un-
likely that there will be an extra SEES
sion Of Congress. The plans adopted at
the conference probably will be pre-
scented TO Congress IN December.
Appropriations materially larger
than those of last year for the army
and navy cannot be made unless Con-
gress parcs down other expenditures
or greatly increases the revenues
through some means. For the fiscal
year beginning July !, Of which not
a month has vet passed, the deficit at
the close of business yesterday was
Sl6,75742279, without counting expen-
ditureS on the Panama Canal. Assum-
ing that this rate of loss will not be
increased. the balance on hand in the
Treasury viii be wiped out in less than
four months, as the net balance yes
terday was SGI377,l26.s2.
The period I'm which the deficit of
more than Sl6.OOOOO0 has been rolled
up has been a particularly fruitful sea
son from the viewpoint Of revenue col
Letting. It includes the first ten days
of July, during which payments or
more than 100000 in income and
corporation taxes due in June were
paid.
Big Fall in Revenues.
On the other hand, customs revenues
up 10 July % were more than S6,2OO,-
600 less than for the same twenty-five
DAYS Of last year, before the European
war broke out but while the Under
wood Simmons tariff bill was in force.
There is also in operation now, bring
inc in almost SS0000,0OO a year, the
war revenue tax bin, which will expire
bv limitation in December. This was
intended as a purely temporary meas
ure 20 tide over the decrease i'm Gus
tom revenues caused by the European
war.
But the necessity Of the revenue
brought in by that act has not d'sap-
reared. and probably vii! not dlsap-
pear until the repeal Of the tariff bill.
Rc-enactment Of the war revenue act
in the first month of the next Con-
crcss is looked on as almost q GER
tainty, if. indeed, the special taxes
laid by Il are not increased IN num-
Der and rate.
All of this is not meeting The need
for increased expenditures in the army
and navy. II is merely keeping up the
present reynue.
In addition to this, and making The
problem much harder, is the fact that
under the Underwood Simmons tariff
ill the revenues on sugar Will be cut
off entirely in May. Under the pre-
vious tariff the sugar duty brought IN
SEQ. 600 600 a year. Beginning in May,
another form Of revenue must BE found
10 take the place Of the sugar duty.
Plans for Navy and Army.
As for the plans for building up the
national defence. the navy board con-
templates a big increase IN submarines,
the building of thirty and perhaps
fifty being recommended. Several bat
tle-cruisers will be urged, and at least
four dreadnOughts and a large increase
in the auxiliary fleet and IN navy air
craft will be sought Several add
tional small navy yards, TO serve as
submarine bases, Will be suggested, II
is thought.
Such a programme would carry with
il Of necessity an increase IN navy per
sonnet and probably the enlargement
of the academy at Annapolis, where
navy officers are trained.
Army plans look TO the building up
Of an arm Of 100000 men. regulars
and militia. within territorial United
States This has long been the figure
at which army officers placed the needs
of the country. This force is designed
10 be quickly available and 20 Bear the
brunt of the fighting while great
volunteer army Is being trained,
To Federalize Militia.
To make the plan efficient it is be
lieved some scheme to Federalize the
militia will be advanced, and that
methods of building up reserves for
both the regulars and militia will be
proposed. The strength Of this first
line army must be maintained while
the volunteers are being trained. and
the reserves would be trained men,
ready TO hll gaps caused by losses and
keep the units at full strength
Another feature TO receive attention
probably will be plans for training Of