The Washington times., 1915-12-25
CANAL BONDS LOOK
GOOD TO REVENUE
RA|SERS At CAPITOL.
That Halt Billion. Almost, Would
Come in Quite Handy, lust
Now.

pesnlte wc,I-sroundcd Democratic rn'
tasonism to the very suggestion OF
bond sale, it BECAME known today thai
Democrats OF the House are giving
serious consideration 10 the suSsestloh
that Panama canal bonds he sold to
raise the revenue the Go.crnment must
end after Congre SIS reconNenes
Majority members Of tho W 1Ns anu
Means Committee are now CONSIDERING
= sale of Panama bonds. notifications
~ the income taX and tho lcNNins OF
IN inheritance tax rs possirie Na\s out
~ the re, onue difficulties. Congress
man ,'crdell Huil, author Of tive income
tex section OF the Underwood Law. VIII
spend practically the entire Christmas
recess looking into the merits OF these
three susRestions.
II is argued already ~ some Demo-
crsts that a sale OF canal bonds can oe
justified because this Government Ens
many millions invested in tie canal ana
the money spent came from tNe OF
ltnary receipts OF the Treasury. which
should be rerlenishrd. now that ma
danal defense and other expenses are
pilIng ny.
Hostile to Direct Taxes.
81 The possibility that the sale OF nonos
may be undertaken Is increased ny 'he
fact that there is much hosuI't! J"
Democratic ranks toward the 'eNN'hS
Of additic nal direct taxes on such ar
ticies as gasolenc. bank checks. pig IRON
and fabric ated steel. as sugSested IN the
Presidents message
There ia no concerted movement Tor
the enactment of inheritance tax legis-
'eton, but Mr.. Iiull Will hc prepared
carly in January to lay before his com
mittee colleagues an analysis or the
revenue producing qualities OF such leg
islatjon The inheritance tax laws OF
various European countries and the
states are now being read by Mr. Hull
The author of tho income tax law Is
understood to believe that that measure
may be so amended rs to produce about
rs, oooooo more than il now produces,
It is realized. however. that any modi-
acation which touches the comparative
" smaller incomes will be exceedingly
uppopular, and If this law Is amended
the increased burden of taxation prom
ably will apply mainly to incomes writ
ten In fye figures.
The Democratic leaders Of the HouS"
are nct strongly oproScd 10 the sole OF
Panama Canal bonds, and CT IN" soy
eral revenue schemes suggested this
seems largely in favor today.
1t is learned that memhers o. the
Nays and Means Committee have oo-
isined within tho past week informahon
from, the Treasury Department regard
ing the sale Of Panama Canal honds
The Treasury Department reported ina
~ the entire issuI authorized. hut S'"a-
isl $50 Of these bonds have been sold
within the past nine years. There are
outss ndng. authorized but not issued,
s240 90 eoO worth OF these bonds at 3
per cent
T. Is asserted that there have been
paid out Of the ordinary receipts OF the
Treasury toward tho construction or
the canal total os 222."7o'""'
Pay Its Own Way.
The Democrats are now considering
the force Of az argument that it IS only
fsIr that the Treasury should be re-
,nburscd. and thpt the Panama canal
which IL to be used by futuT" genera
lions. shall pay its own way
niscussing frankly such suggestion
TODAY q Democratic leader sa ID;
The rev enue situation remains UP
IN the air but il is certain that no
matter hat direct taxes are levied they
will not be popular The figures show
". have an investment of more than
500, 100000 in the Panama canal It was
he intent Of congress all along 10 have
bonds nav the way Of this undcrtak king,
ard the annual reports of RepuhllCan
Secretaries of the Treasury have urged
from time to time the sale OF lhese
bonds to replenish the Treasury More
than $50, 900 900 worth were sold, the
last issue hejne in 1911.
Now that the country il in need OF
revenue for national defense II can De
fairly argued that the time has arriN cd
~ get back some Of tn" money CXpend-
no
Government IN constructing the canal
which will he used ny taxpayers who
eventually will redeem the bonds
The income taN may he amended to
produce considerably more revenue. Just
how has not been worked out. There is
also rc enue- -prOducing qualities in an
inheritance tax. and the availability of
such suGrc stions will hc considered in
connection with the proposal TO sell
bonds. The Ways and Means Commit
tee expects TO consider the several sug-
sestions as soon as the revenue needs
of the GoVernnnt are ascertalnable. ana
u cen he said now that the bond issue
appeals to manV members OF Congress
as the best solution Of the eXtraordl-
nary problem nrcsentcd.'
Minority Against ANY Bill.
From Republican sources it vas saith
rred that the mtnorit! viii ocpcE" Drac-
ticallv any revenue bill advanced by the
majority The Republican view will be
that with n protective tariff heroic
revenue measures and direct taxes
would he necessary.
It Is appaernt that 1t will be exceed
inElY difficult to put through Congress
legislation imposing additional stamp
taxes Tho suggested tax on gasolene
has practically no support nor is there
general sympathy with the proposal OF
heavy tax on piG iron and fabricated
steel
The small army and navy" Contin-
gent in the House are lining up for an
excise tax on war munitions. II is re-
garded as doubtful. however. that such
a hill would receive sufficient support
and II will probably be opposed as a
speCies Of class legislation.
Every Merchant
should plan to announce his After
christmas Bargains to more than al,D
Ia