The Birmingham age-herald., 1915-11-26
States Treasury Conditions and Suggests Changes in
 Income Tax Laws
ISSUANCE OF BONDS
 NOT ADVISABLE
Estimates That $112,S06,39i Addi- tionsl Revenue Is Needed for 1917. Higher Tax on Gasoline. Crude
 Oils and Autos Considered

Washington. November 25.-Increase
 in national taxation rather than issu-
 ance of bonds to meet the first years
 fense programme, are advocated by Sec
 retary McAdoo of the treasury in
 formal statement issued tonight giving an estimate of the federal govern to the end of the fiscal year beginning next July.
 Assuming that Congress will con- tinue fin effect the present emergency
 tax law and customs duty on sugar,
 the Secretary estimates that s1129os,-
 Ss4 in additional revenue will be need ed for the expenditures for 1917. in-
 cluding s9a, soo,ooO for new measures
 for national defense.
 This amount" says the statement.
 can easily be raised by internal tax ation without apprecable burdens upon
 the American people"
 MT. McAdoo suggests a reduction in
 tAS iHCoht tdN law eNGHlpllon on S1nEie persons from $30o0 to s200o, and on
 married persons from 5000 ao $2000 Changes in the surtax imposed on in- comes above a certain figure; and new
 law. gasoline. crude oiIs horsepower of automobiles, other internal combus- tion engines and various other things. TREASURY CONDITIONS The statement follows: 'In view of the many inaccurate and misleading statements which are be- ing made, either deliberately or ignor- antly, about the condition of the treas- ury and the finances of the government with respect to the current fiscal year and the fiscal year 1877, I feel that true and accurate analysis of the sit-
 uation may be of service to the public. The question of the national finances ! is so intimately related to other vital probelms which must be settled in the interest of the American people, that 1 every rlghtminded citizen should want | the truth in order that he may help form that intelligent public opinion out of which alone can arise sound and just conclusions. With this in mind desire to submit to the public the fol- lowing information: "We began the fiscal year 1918 (Juiy 1, 19f5) with general fund balance, not including amounts to tho credit of dfsbursing officers. of s104,170.105.TS. Compared with the balance shown in the daily treasury statement of June 30. 1915, this Is composed of the follow ing:
 Balance in general treasury on June 20. 1915. as per treasury daily statement $S2.025,7t608.
 Add national bank note redemption fund. which, by law Is part of the public dept and not to be set up as liability of the general fund, s19,390,- 345.50
 Add cash deposits during the year 1915 and included in the revised totals. advices of which were received at the treasury after June 30, 1915, Sa,754,- 044.25.
 Balance in general fund June 30, 1915 (revised basis) s1o4,l7o,105.7s. SUGAR REVENUE Under existing law the present duty of cent per pound on raw sugar ceases May 1, 19l6 and the present emergency revenue law expires on De-
 cember 31, 1915. Assuming that these two sources of revenue are eliminated the following results may be expect ed for the fiscal year 1916: General fund balance in the treasury July l, l9l3, as already shown, $lu4,- ITO, 105.70. The estimated total receipts for 1916 are s670, 500; total. s774,535. .6o5.7S. Total estimated disbursements for 1J16 excluding Panama canal pay mcnts, $716.S9 900. Surplus or balance June S0 191s. s57 644. .605,7S. The duty on sugar and the emergency revenue taxes ought to be continued, If this is done. the additional receipts
  1916 should be ($4f. .000, 900 from emer- gency taxes and $15,O00, 900 from sugar) S56, 900 900. Balance, $119644,6057 It may be assumed that there will be appropriated by the Congress for supplemental estimates and deficiencies for the fiscal year 1916 total of sie.- coo, 900.
 Surplus for fiscal year 1916 (assum ing that emergency taxes and sugar duties are continued), s101.644.605.7s.
 Panama canal payments for 1s16 are estimated at $25.000,000. These. under existing law, may be patl by sale of bonds. If paid. how eser, out of current revenues, we must deduct s25.000.000 On this basis available balance at end of fiscal year 1916 would be S7S.- G44,605.7S
 Now let us consider the fiscal year I191T which we began with a balance in the treasury of s16.644605.7S. Total estimates receipts, on the as- sumption that present emergency rev enue taxes and duties oe raw sugar products are continued S13o ooo,O00 Total for 1917, sS07.144605.7s Total disbursements, including $9s.- 80 900 new or additional expenditures for greater national defense or pre- paredness and excluding Panama cana pavnlonts. sSge 95 ea0-
 Deficiency 1917, s25,soS,ssh22. Estimated deficiencies and supplemental appropriations for 1917, 2,ooooo0, Add for working balance in treasury to begin fiscal year 1918. 5oooooo. L PANAMA CANAL PAYMENTS Panama canal payments for 1917 are esal timated at $25000.0o0. If paid out of reveS Ia of adS