Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1915-12-07

tional defense or preparedness and
excluding Panama canal pay
ments, $780, 5I 200. ....,...
Deficiency, 1917, SIS. SOC, 394.22.
Estimated deficiencies and sup
Elemental appropriations for 1917,
$4,000, 900. - .~
Add for working balance in
treasury to begin fiscal year 1918,
$4,000, 900. -.s.. H.. :.>,...-..
Panama Canal Payments
Panama canal payments for
1917 are estimated at $25, 1000, 900.
II paid out of revenues and not
from the sale of bonds, add $685.
000, 900. = r.. F -. ~.~.~~...
"On this basis, the total new
revenue to be raised for the fiscal
year 1917 is S112,S06, 1922.
IF, however, the Panama canal
payments for the year 1916 and
1917, amounting to total of $780,
100000, should be paid from the
proceeds Of bonds sales, then the
amount of additional revenue
which must be raised for the fiscal
year 1917 is estimated to be $62,-
SD6,394.22. 1t would not be an I'M
usual thing to finance the Panama
payments by the sale of Panama
bonds; in fact, $l3S,600,S39.02 of
Panama canal payments have
been met by the sale of such
bonds.
Canal Bonds Sold
Series of 1906, administration
President Roosevelt, 2, per cent,
principal of bonds, $54.631 $50;
premium received, S1,946,060.62.
Series of 1908, administration of
President Roosevelt, 2 per cent,
principal OF bonds, $4,000, 900;
premium received, $731, 008.21..
Series of 1911, administration
OF President Taft, 3 per cent, prin-
cipal of bonds, 50,000,O0 pre-
MUM received, 81, 2Sl ,274.19.
Total principal of bonds, 1884,
631, $50; total premium received,
96s,8ss.02-
Total realized, $13s, SOC, S69.02.
I Under the present advinistra-
ton all payments for the Panama
canal have been made out of cur
rent revenues, amounting since
March 4, 1913, to date to ST., 1885,
$500. There is no necessity in
my opinion for the issuance of
bonds, Notwithstanding the con-
tinuance of the European war and
its inevitable effects upon the
revenues.
Would Use Revenue
81 believe that 1t would be far
preferable to continue to pay the
expenditures for the Panama canal
out of current revenues, especially
since the canal is almost COM
pleted, and 1t is likely that the
demands upon the treasury from
that source will largely decrease
in the near future. If the policy
is adopted Of providing sufficient
revenues to cover the Panama ca
nal payments, as we'll as all other
demands on the treasury, it will
probably be broad enough to take
care of any ordinary fluctuations
in the revenues and expenditures
Of the government in the future.
Therefore, If bonds are not is
sued for Panama canal payments,
the total amount of new revenue
required for the fiscal year 1917
assuming, as before stated, that
the present duty on sugar and the
present emergency revenue taxes
are continued1, is s112,806, 1892,
In which is included the sum of
$93, 100000 for preparedness or
new measures for the national de-
tense. So
Is Resources Growing
This amount can easily be
raised by the internal taxation
without appreciable burdens upon
the American people. The re-
sources and wealth of the country
are so great and are increasing
so rapidly that the needs of the
government for its normally grow
ing expenditures and for the car
rying out of the larger program
for national defense can readily
be met. Merely as suggestions i
would say that consideration may
web be given to increasing the
rates of. taxation on individual and
corporate incomes and of reduc-
ing the exemption under the pres
ent. law of $4,000 for single and
$4,000 for married persons to $4,000
and $4,000, respectively. The sur
tax could begin at $4,000 or .$15,-
900 instead of $40, 900, as provided
at present.
increases Proposed
, "In addition to any increases
that may be made in the corpora
ton and individual income tax,
tax could be imposed on such
products as gasoline, crude and re-
fined oils, horsepower of automo-
bile and other 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 a. vital purpose
rs national preparedness and de-
tense.
1T is, of course, the function of
the Congress to determine what
cboII ha roicad opd ho~