New-York tribune., 1915-11-26

Panama Canal payments for 1916 an,
estimated at s25,000,000. These. undel
existing law, may be paid by sale OF
bonds. If paid, however, out of cur
rent revenues. we must deduct s25,
100000. On this basis the available
balance at the end of fiscal year 1915
would be S76,6ll, ,6O5.7S.
"Now let us consider the fiscal year
1917, which we begin with balance in
the treasury Of S76,644, ,605.7S.
Total estimated receipts, on the as
sumption that present emergency rev
enue taxes and duties on raw sugars
are continued, $3.50, 100000; total for
1917, Ss07144.605.78.
Total estimated disbursements, in
cluding 1913 100000 new or additional
expenditures for greater national de-
fence or preparedness, and excluding
Panama Canal payments, 1892, 600;
deficiency, 1917. $25, ,394.22.
Estimated deficiencies and supple
mental appropriations for 1917, Sl2,-
100000. Add for working balance in
treasury TO begin fiscal year 1918, $780,
100000.
Panama Canal payments for 1917
are estimated at S25,000,000 II paid
out of revenues and not from sale of
bonds, add s25,000,000. On this basis
the total new revenue TO be raised for
fiscal year 1917 is sli2,s06 ,394.22.
"lf, however, the Panama Canal pay
ments for the years 1915 and 1917,
amounting 70 a total of S50,000,000
should be paid from the proceeds Of
bond sales, then the amount OF addi-
tional revenue which must be raised
FOR the fiscal year 1917 is estimated 20
be S62 6,39422.
1T would not be an unusual thing 20
finance the Panama Canal payments b.
the sale Of government bonds; in fact
Sl3S. .s69.02 Of Panama Canal pay
ments have been met By the sale OF
such bonds, az follows:
Series of 1906. administration OF
President Roosevelt. per cent; prin-
cipal of bonds, 1851 $50; premium
received. S1,946. .606.62. Series of 1905
administration Of President Roosevelt.
2 per cent; principal OF bonds, $780,
100000; premium received, S73l .00S.2l.
Series Of 1911, administration Of Presi-
dent Taft. 3 per cent; principal OF
bonds. $4,000. 600: premium received
81 ,291. .27419. Total principal Of bonds
Sl34,63l.9 $50; total premium received
S3,96S,SS9.02. Total realized, $685.
j00,669.02
Sees No Need of Bonds.
"Under the present administration all
payments for the Panama Canal have
been made out of current revenues,
amounting since March /, 1918. TO date,
70 SS7 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 revenues. | believe
hat it would be far preferable 70 con-
'inue 10 pay the expenditures for the
Panama Canal out Of current revenues
especially since The canal is almost
completed and il is likely that the de-
nands upon the Treasury from that
source will largely decrease in the near
future
"lf the policy is adopted of provid-
ing sufficient revenues TO cover the
Panama Canal payments, as well as all
other demands upon the Treasury. il
will probably be broad enough to take
care of any ordinary luctuaton in the
revenues and expenditures OF the gov
ernment in the future. Therefore, if
bonds are not issued for Panama Canal
payments, the total amount of new rev
enue required for the fiscal year 1917
(a5suming, as before stated. that the
present duty on sugar and the present
emergency revenue taxes are contin-
ued) is Sl22, 500 ,39422, in which is in
cluded the sum of S93,S00,C0 for pre-
paredness or new measures for the ma
tional defence.
This amount can easily be raised by
internal taxation without appreciable
hftr ta IL
The resources and wealth OF the coun-
try are so great and are increasing so
rapidly that the needs OF the govern
ment for its normally growing ex-
penditures and for the carrying out Of
the larger programme for national de-
fence can readily be met.
Merely as suggestions, | would say
that consideration may well be given
20 increasing the rates of taxation on
Individual and corporate incomes and
OF reducing the exemption under the
present law OF $4,000 for single and
$4,000 for married persons TO $4,000
and $4,000, respectively. The surtax
could begin at $4,000 or $4,000, in
stead Of $4,000 as provided at present.
I'm addition TO any increases that
may he made in the corporation and in
diyldual income taxes a tax could be
imposed on such products as gasolenc.
crude and refined oils, horsepower Of
automobiles and other internal COM
bustion engines and various other ar
ticles not necessary TO mention. These
taxes would be widely diffused and
scarcely felt. Certainly the nation is
willing when II is so able 20 do so.
20 raise By taxation the amount needed
for such vital purpose of national
preparedness and defence
ut Is, OF course. the function Of the
Congress TO determine what revenues
shall be raised and how. and these
views must not be considered as "A
programme. but merely as suggestions
for discussion.