The Washington herald., 1915-08-30
Revenue Problem to Be Met.

Among the numerous problems which now be-
set the administration, not the least perplexing is
that of revenue to provide for the governments
expenses, which must inevitably be largely in
creased by the heavy national defense budget
which the country is demanding. Even at the
present moment the revenues barely sufficient
10 meet ordinary expenditures, and in four months
the special tax expires by statutory limitation,
while four months later there will be further
loss of income when, by the terms of the Under
wood tariff bill, all sugars to be admitted at
our ports free of duty. Not only must these
losses, amounting to something like $Iooooo,o 900
annually, be made up, but from some source or
other must be drawn the additional millions which
are to be spent on the army and navy.
The President is represented as being in favor
of short-term bond issue to raise the funds for
the national defense. He is probably right in as
suming that bond issue just now for such pur-
pose would be an appeal to patriotism that would
meet with hearty and popular response; though
it is not unlikely that next year, after the money
has been contributed and is in process of ex-
penditure a reaction may come, if the necessity
is not apparent. 1t has been suggested also
that the President will recommend that the special
war tax be continued for another year. To carry
out both of these projects, with the nation at
peace, would appear to be bold temptation of
fate in the election next year, involving a con-
fcssion, too of the utter failure of the Underwood
law. The administration refuses to admit the
failure of its tariff legislation, constantly making
the excuse that the European war has prevented a
fair trial for it. The war, has of course, seriously
curtailed imports, but not to an extent to
justify placing upon it the sole blame for the
failure of the tariff to yield anything like fair
contribution to the national treasury. The statis-
ticians of the G. o. P are not nearly convinced,
and they will be busy next year with figures sup
piled them by Secretary Redheld of the Depart
ment of Commerce, seeking to prove to the voters
that even had imports remained at normal the
duties paid at ports under the Underwood
law would still have been small factor in pro-
viding for the country's running expenses and
extraordinary forms of taxation would still have
been necessary.
Republicans will hope that the administration
will not revise its tariff law they would prefer to
see it stand down to the clause which will
further reduce the revenue by admitting all sugars
free beginning next May. But, in view of the
Treasury's condition and the demands that are
to be made it, it will be surprising if the ad-
ministration leaders do not undertake to revise
their tariff, at least so far as sugar is concerned
Nothing be said in defense Of the sacrifice of
this revenue if the direct special war tax is MAIN
tanned. Almost surely there will be demand for
tariff revision in the first session of the Sixty
fourth Congress, whether it prevails not
Its fiscal and Mexican policies will be the chief
obstacles in the way of the Democracy's success
at the polls next year. and it will be no easy task
to convince the people that falling off of 20
per cent or in imports result of the war
made bond issue and direct tax necessary on
top of individual income tax. Up to the
present time the war has improved this country's
financial situation intellectually, if it has kept
some millions out of the Treasury, and the ad
minstraton will not find it easy to fasten upon
the conflict in Europe the blame for whatever
failures there have been in its economic policies