The Birmingham age-herald., 1915-11-26
M'ADOO ADVOCATES
 GREATER TAXES FOR
 NATIONAL DEFENSE
Continued from Page one)

l amount of additional revenue which must ! be raised for the fiscal year 1917 is esti- mated to be $62.S06, 394. P. It would not be an unusual thing to finance the Panama canal payments by the sale of govern
 ment bonds; in fact, $13S, 500, S69 O2 of Pam anna canal payments have been met by the sale of such bonds as follows: Series of 1906, administration of Presi- cent Roosevelt, per cent principal of bonds, s54, 6S1,9S0; premium received, s1,- 946, COG. .62
 Series of 1908, administration of Presi- dent Roosevelt, 2 per cent principal of bonds, $o0,0O00o0; premium received, s731,- 0OS. .21.
 Series of 1911, administration of Presi- dent Taft, per cent principal of bonds, sN ,Oc0,00O; premium rece.ved, $1,291, ,274 19. Total of principal of bonds $134, ,631, ,9S0; total of premium received, s, ,96S, ,Ss9. .02. Fetal realized, 3Ss6OU S69.02.
 Under the present administration all payments for the Panama canal have been made out of current revenues, | amounting since March 4, 1913, to date to $S7 ,036,S1S 20. There is no necessity, in my opinion for the issuance of bonds notwithstanding the continuance of the European war and its inevitable effects upon the revenue. I believe that it would be far more preferable to continue to pay tho expenditures for the Panama canal out Of current revenues, especially since the canal is almost completed and it is
 unlikely that the demands upon the treas ury from that source Will largely decrease Tn the near future. If the policy is adopted of providing sufficient revenue to cover the Panama canal payments, as well a1 all other demands upon the treas- ury it will probably be broad enough to take care of any ordinary fuctua- tons in the revenues and expenditures of the government in the future. There fore if bonds are not issued for Panama canal payments the total amount of new revenue required for the fiscal year 1917 ! tassuming, as before stated, that the present duty on sugar and the present emergency revenue taxes are continued is $1l2,SO6, 39422 in which is included the
 sum of $93,S0O,000 for preparedness or new
 measures for the national defense. This
 amount can easily be raised by internal taxation without appreciable burdens
 upon the American people. The resources and wealth of the country are so great and are increasing Sd rapidly that the needs of the government for it's normally growing expenditures and for the carry ing out of the larger programme for na- tional defense can readily be met Merely as suggestion would say that considera- ton may well be given to increasing the rates of taxation on individual and cor porate incomes and of reducing the ex- OiiiPtioH uIluer lHe present law or $3OO0 for single and $4000 for married persons tc 5000 and sSOoo respectively. The surtax would begin at $10,00O or $15O0O instead of $20,O00, as provided at present.
 Tn addition to any increases that may be made in the corporation and individual income taxes, tax could be imposed on such products as gasoline, crude and re- fined oils, horsepower of automobiles and ether internal combustion engines and various other articles not necessary to mention. These taxes would be widely diffused and scarcely felt. Certainly the nation is willing, when it Is so able to do so, to raise by taxation the amount needed for such vital purpose as na- tional preparedness and defense.
 Tt. of course. the function of the Con- gress to determine what revenues shall be raised and how, and these views must rot be considered as a programme. but merely as suggestions for discussion.