New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-08-30
Treasury Needs Every
Cent of Revenue Present
Law Provides.
WAR TAX MUST
BE RE-ENACTED
Government Will Have to Add
S3O,OOO,OOO to Receipts 10
Avoid Financial Rocks.
From The Tribune Bureau

Washington, Aug 29.-After a care
full study Of the governments growing
deficit and shrinking revenues, high
official of the Treasury Department adj
mitted tonight that it would be nee
e.sarv. TO avoid financial rocks, for the
present duty on sugar to be continued
after May next, the date fixed by
the present tariff bill for II 70 go on
the free list. Even the re-enactment
OF the war revenue tax bill, which VIII
srp,rs in December. would not save
the situation without the duty from
sugar. he declared, as the revenue from
this .ouree-and more-would be need
ed anyhow. Hill
have 10 be re-enacted," this official de-
cIsrsd "but substantial additions Will
have 10 be made for il. In some way
about s30.0O0O 900 more revenue must
h. added to the present annual totai
in order that the government may not
20 piling up a deficit. | do not see
how the government can get along
without at least the present revenue
from sugar. Formerly, under the duty
;r,nosed on this commodity by the
Pavne-Aldrich bill, sugar brought IN
anout S60.000,00 year revenue
Under the present rate in the sliding
scale gradually working toward tne
noint where sugar will be absolutely
free. sugar should bring in about SSz'-
600 900. according 10 the best ealcula-
tons | can make.
Revenue Will Fall.
"put il is important to note, IN con-
,idering the present state OF the treas
urv and the fact that sugar goes on
the free list in May, it will not produce
that much revenue this year. l mean'
of course. for the fiscal year ending on
the date it goes on the free list. hnor-
NOUS amounts of sugar will De brought
in under bond during the two or three
months Immediately preceding the date
the duty goes off. Then on that day
This sugar can be brought out OF bono
and rushed to the wholesalers and gro
GERS, whose supplies, II may be taKeh
for granted, will have been allowed 70
be virtually depleted TO take sdvah-
tage OF the substantial saving onereu'
~ have carefully figured out inc
quantity of sugar which would De
brought in under bond with this idea IN
view. and it would be enough to cost
the government about SoOOO,OOO even
under the present reduced rate IN
short, the revenue from sugar TINS
year. il sugar is to go on the free
list. will be cut to about S24 ,OOO,OOO'
"Of course, il the present rate OF
duty is maintained the government Will
not only save the sS,000OOO this year
again referring TO the fiscal year
ending on the day sugar goes on the
free list under the present tarf law
but il can count on $32,OOO,OOO OF rev
enue from that source next year, when
will virtually mean revenue OF saw
100000 which will not have 20 be col
lected from some sort OF special taxes
next year.
Should Retain Duty.
That it would be the wise thing TO
do 10 retain the present duty seems 70
me unouestionable The only obiec-
ton would be the political one that II
would appear as a backward step in
the Democratic tariff platform. On the
other hand, the political effect Of i'm
posing a number of burdensome and
Irritating special taxes would, 1t seems
TO me. be much worse for the party.
There is positively no escape from
the alternative unless peace should
suddenly come in Europe with food
OF imports that would enable the Gus
tom houses to Iupply the government
the money it needs Especially is this
true when it is considered that from
present indications the next Congress
will appropriate more money than the
last, due 70 the agitation for national
defence"