The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-10-07
Extension of War Revenue
Act Also to BE Sought,
Says McAdOo.
A BOND ISSUE FOR
DEFENCES PLANNED
Extra Session of Congress in
November Expected
at Capital.

w,su,sGroS, Oct. 6.-The Wilson
Administration will ask for the indefinite
suspension of the free sugar schedule at
thc next session Of Congress.
Information as to the Administrations
abandonment of the idea OF permitting
sugar to 20 on the free list was con-
y.yed in an announcement from Secre-
,ary Of the Treasury McAdoo to-day. Mr..
McAdoo announced that he will recon-
mend in his forthcoming message to
Congress that the existing duties on
.ugar be retained for several years. He
will recommend, in addition. that the
var revenue act be extended until peace
n restored In Europe.
The belief was expressed here to-
nigh, that as a result Of the determine
,ion OF the Administration to restore
susar duty and reenact the war emer-
seucy revenue act Congress Will have
10 I've called In extra session some time
In November. Congress Is scheduled
10 meet in regular session on Decem-
Der s.
This Announcement marks the frst re-
yelsal on the part Of the Administra-
,ion in regard to the tariff law. and It Is
believed that it foreshadows a more lib
.ral attitude toward other suggested
changes.
The Secretary said that II was impos-
sble for him to announce what meas
ures the Administration may deem
necessary to provide additional revenues
ss the departmental estimates have not
been received. The latter statement was
Interpreted as suggestion that bond
issue may he authorised to cover the In
creased expenditure for national de-
fence
II is well understood at the Treasury
penartment that the War and Navy
Governmental estimates are the only
ones which may be extended IN consid-
.rable measure and thus create a need
for additional revenues.
TO Rely on Bond Issue.
No uncertainty exists IN their mind:
that the President practically has de
cded TO rely upon the bond issue TO NEE
the expenses OF developing the army ant
navy.
Here is Secretary McAdoo's state
mcnt.
In rcply to many inquiries about
the revenue measures that will be pro-
posed in the next Congress, haVe
determined to recommend (l) that
the emergency revenue act which
expires by limitation on December 3i'
1915. he extended until peace is re-
stored in Europe. and co that the
existing duties on sugar shall be re.
tanned for several years. or until
normal customs conditions are re-
stored. These are distinctly revenue
measures, and are necessary In view
Of the extraordinary conditions now
prevailing throughout the world.
II is impossible to state at the
moment what II any. additional
revenue measures may be necessary
as the estimates OF the various de-
partmcnts have not been received. IL
is clear. however, that two sources OF
revenue I have just mentioned should
he preserved, no matter what the de-
detrimental estimate may he. or
course 1t rests with Congress to say
what shall be done. l am merely
stating what my recommendations In
this particular will be.
Congress Sure TO Act.
The announcement Of the Admins
trdtiun's decision to ask for the retentio
Of the sugar duties leaves no unceI
tainty as to what Congress VIII do. now
ever It has been a well establishe
fact since the early spring that oni
the determined opposition OF the Pres
dent could prevent Congress from sus
pending the free trade provision OF III
sugar schedule The provision become
operative May I, Treasury DepartmeI
experts have estimated that II woul
deprive the Government of $4S,0OO,OO
Of annual revenues.
Before the adjournment OF the la!
Congress strong sentiment had az
,eloped In the House and especially
the Ways and Means Committee thi
II would he folly to relinqush $4,000
ono Of annual revenues at a time whs
the Government had been forced to n
Sort TO an emergency revenue measu
70 secure sufficient funds to meet no
nal demands.
Pressure for the repeal has accum'
lated steadily in the months since Il
war revenue act became effective. Il
Gently Congressman Kitchn came
Washington and in "A conference Wi
Secretary McAdoo expressed the col
vio'ion that the retention OF the sugi
duties was an absolutely necessary fir
Step in the formulation OF proRramn
10 meet the expenses OF the Cover
iu'n' IN the next year.
Secretary McAdOO's decision to recon
mend the repeal OF the free sugar pr
vision is regarded by Republicans as
complete reversal OF the Presidents p
s'uon on the tariff. The free sug
provision was adopted by Congress
drc't request Of President WilsO
Some Republican leaders insist tn
when the Democratic Congress &c
down 10 work Oh tarifY revision III
"ni'r wool as well az sugar will
lo o-'"gcd To the dutiable list.
udrr the Republican tariff law
Oily Of l,3s pound was levied
sugar This yielded about $50, 900, o
year, ON March I. 1914, there W
reduction OF 2b per cent. In the II
publican rate on sugar. At present I
Government collects three-fOurths Of I
Republican rate on the product TT
lds welded IN the past year abe
- 'ooo""n few days ago the ca
b"ldur" IN the Treasury was $41 90
o'"' oa compared with $sl,O00.000
july /,