The Washington times., 1915-10-07
Considers Canal Bond Issue to
Pay For Preparedness
Work.
MESSAGES ARE READY NOW
Secretary Shows Free Sugar
Would Deprive U. S. OF
S50,000,00L a Year.

Retention Of the import duty on sugar.
and extension Of the war emergency
tax beyond December 81. are the only
two revenue measures decided upon by
the Administration.
In an official announcement from the
Treasury Department. Secretary NC
Adoo states that these two measures
will be recommended to Congress AZ
the opening Of the session.
Just. what. II any. additional meas
urcs will be taken, has not been de-
termined by the Administration. Though
Secretary McAdoo and other advisers
have consistently frowned upon a bond
issue. It Is possible that an issue of
Panama Canal bonds will be made to
finance the army and navy In the pre-
paredness program. and kept as sep
arate transaction, leaving the ordinary
receipts to care for ordinary disburse-
ments.
Wants Free Sugar Held Up.
Secretary McAdoo will recommend that
the free sugar provision OF the Under
wood Simmons bill. which places sugar
on the free list May l. 1916. be with
drawn for several years. and that the
emergency tax be continued until the
expiration of the war In Europe. His
statement is as follows:
In reply to many inquiries ] have re-
ccived about the revenue measures that
will be proposed In the next Congress.
have determined to recommend U) that
the emergency revenue act. which eS-
pires by limitation on December 81. 1913.
be extended until peace Is restored In
Europe. and t9 that the existing duties
on sugar shall be retained for several
years. or until normal customs condi-
tions are restored. These are distinctive
ly revenue measures and are necessary
in view OF the extraordinary conditions
now prevailing throughout the world.
1T IL impossible to state Mt the mo-
ment what. II any, additional revenue
measures may be necessary, as the esti-
mates OF the various departments have
not yet been received. II Is clear. how
ever that the two sources OF revenue
have just mentioned should be pre-
served. no matter what the department
tai estimates may be. OF course. II rests
with the CongNss to say what shall bc
done. | am merely stating what my
recommendation In these particulars
will be" 30
Emergency Tax Brings $5S,0O0.000.
Free sugar would. according to es-
Inmates. deprive the Government Of
$4,000 900 a year in revenue. During the
first eight months OF Its operation. the
war emergency tax brought in more
than S53. Coz. 900. 1t IL estimated that It
would bring In SiOo0o0,coo for the full
fiscal year this year. The emergency
tax and the sugar duty failed to keep
the Treasury away from a deficit last
year of $50 .oO0 Had the emergency
tax been running the full fiscal year. It
would probably have kept the receipts
on n parity with the disbursements,
The Administration has available
$3O 600 go worth OF Panama Canal
bonds. authorized and never issued. A
large share OF canal disbursements were
cared for out OF ordinary receipts. CIV
ing a reserve on the bonds. II is pos
sible that an issue OF these bonds will
be made to finance the preparedness
program.
Sugar was put on the free list by the
Administration at the direct behest OF
the White House. Free sugar was OPP
posed by Oscar Underwood and other
leaders.