Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1915-11-27
Estimates too High

Senator Smoot OF Utah, one OF the
leading Republican members Of the fl
nance committee. gave out state
ment attacking the financial statement
issued BY Secretary McAdoo. The
Utah senator stated that all the secre-
tary's revenue estimates were too high
and those for expenditures too low and
that mslea ding bookkeeping changes
had been resorted to.
Differing from his fellow North Car
olinian-Representa Kitchen. new
ma jorlty leader OF the House-Senator
Simmons announced himself as an
earnest advocate Of adequate defense
and expressed the conviction that the
present income tax exemption was far
too high and that gasoline and auto
mobiles should share the burden of
the war tax
Simmons Endorsement
although have not had an oppor-
tun.ty to investigate closely the de-
tails of the admnistra tons defense
plan" said Mr. Simmons, Il approve
the general idea which | understand
3nderlies it. With reference to pre-
paredness, generally. l think that the
sentiment Of the people of my state
W"ulc be against what has been char
lctsIlZed as frenZied preparedness,
but Overwhelmingly in favor of what
might be termed commln sense pre-
pareQness; that is, preparedness that
would enable us to defend ourselves if
attacked and to defend Our rights up
on the high seas as well as the land,
If these ny I y
have navy adequate not only for de-
ferse. but adequate to assert our
rights
thlnh the reasons why the govern
ment should provide for q merchant ma
rihe are even greater than they were
when the bill which failed at the last
Congress was introduced and l believe
that the reasons Will tie stronger when
the war closes than they have been dur
ing its continuance, because when the
war closes and the scramble for interna-
tIonal trade sets in, our position will be
pitably hopeless one if we have to
depend for the transportation to accom-
nod2te our nearly -blllon-dCllar in
ternational trade almost wholly upon our
competitors in that trade. ! like very
much the suggestion Of acquiring ships
that may be easily convertible into aux
iliares for the navy.
Il am inclined 10 think that the in
come tax exemption is too high. 1t had
resulted in less than 10000 people OUT
of total OF 100000 paying the entire
tax derived from incomes.
Shoots Analysis
In his statement analyzing Secretary
McAdoos figures, Senator Smoot assert
ed that they did not correspond with the
daily statement of the United States
treasury issued on the date when the
secretary's tabulations were begun. Sec
rotary McAdoo's table showed that on
July !. 1915. there was a credit balance in
the general fund of sl04,l70,1o5.7S. whereas
the senator declared the official daily
statement OF the treasury for that date
showed the net balance in the general
fund to be s.6,l57 .SSo. SO. on Sept. 90, 1915,
the treasury statement, according TO SEN
ator Smoot, showed net balance in the
general fund of $40, SOS, S94 81, while, he
added. the next days statement without
the addition of the proceeds Of bond
sale. and with an actual decrease in the
revenues Of the government over expend-
itu-es shows the balance of SIPS 0f-3. 545. g.
In this apparent increase of sS7,l64,-
$50 os in the treasury balance said SEN
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