Evening star., 1915-11-27
Opposed by Senator Smoot.

Opposed by Senator smoot.
Senator smoot of Utah, a prominent
republican member of the finance COM
. mittee, also was out with statement
tcday in which he attacked Secretary
McA1oo's general financial statement.
Senator Smoot asserted that all Of the
Secretary's revenue estimates were too
| high and those for expenditures too
low and that misleading bookkeeping
changes had been resorted to.
On the question of national prepared
ness Senator Simmons differs from Rep
resentative Kitchin of North Carolina,
the democratic House leader. Senator
Simmons is ready to support the ad-
ministrat!on on this question. Also he
believes that merchant marine legisla-
ton is much needed.
although 1 have not had an opportu-
nifty to investigate closely the details
of the administrators defense pro-
gram" said Mr.. Simmons, Il approve
underlies 1t. With reference to prepar-
edness generally, I think that the SEN
tfment of the people of my state would
be against what has been characterized
as frenzied preparedness. but over
whelmingly in favor of what might be
termed common sense preparedness
that is. preparedness that would en-
able us to protect ourselves if at
tackled and to defend our rights upon
the high seas, a s well as the land If
these rights are invaded. would have
navy adequate not only for defense,
but adequate to assert our rights.
Need of Merchant Marine.
Il think the reasons why the govern
ment should provide for a merchant
marine are even greater today than
they were when the bill, which failed
at the last Congress, was introduced,
and l believe that the reasons will be
stronger when the war closes than
they have been during it's continuance,
because when the war closes and the
scramble for international trade sets
in. as it inevitably will, our position
will be a pitiably helpless one if we
have to depend for the transportation
to accommodate our nearly $4,000, ,000,
900 international trade almost wholly
upon our competitors in that trade. 1
like very much the suggestion of ac-
quiring ships that easily may be con-
vertible into auxiliaries for the navy.
Il am not in a position to express
any definite views about revenue
needs, because / have not conferred
with President Wilson, the Secretary
of the Treasury or members of the
finance committee. Assuming that the
deficit will be no larger next year than
this. it is evident that we will have to
provide for raising considerably
larger sum of money.
To Continue Sugar Tax.
"I assume that the present tax on
sugar will be continued. l assume
that the present war tax Will, in the
main, be continued, with. some posi-
BILE changes. / think there will be
some additional subjects of taxation.
see the suggestion that gasoline and
automobiles should be taxed. Speak
ing personally, / was in favor of this
tax when the present-laW was under
preparation. and / stll think it just
tax and believe that these two articles
can well afford to bear a share of the
burden that has been imposed by war
conditions.
come tax exemption is too high. 1t has
resulted in less than 100000 people out
of a total of 100,000,000 paying the en-
tire tax derived from incomes. That
does not seem to me to be quite fair"
In his statement analyzing Secretary
McAdoos figures, Senator Smoot
serted that they did not correspond
with the daily statement of the United
states Treasury issued on the date
when the Secretary's tabulations were
begun Mr.. McAdoos table showed that
on July :. 1915. there was a cradit bal
ance in the general fund Of Sl04,i10,-
1O5.iS, whereas, tie Seilitoi dScldleu,
1.-THE official daily statement of the
Treasury for that date showed the net
balance in the general fund to be $76,-
l157S3l33 September 80, 1915, the
Treasury statement, according to Sena-
tor Smoot, showed net balance in the
general fund of $40,S9S, ,s94.97, while, he
added. 'the next days statement with
out the addition of the proceeds of a
tbond sale, and with an actual decrease
in the revenues of the government over
shows the balance of
sl2S,063, ,545.23"
Achieved by Bookkeeping.
This apparent increase of sS7.1s4.-
G5o26 in the Treasury balance" said
Crpoot "was in bool L