The Washington times., 1915-12-25
CANAL BONDS look
GOOD TO REVENUE
RAISERS AT CAPITOL.
That Hall Billion, Almost, Would
Come in Quite Handy, lust
Now.

.pesnlte well-grounded Democratic Hn
taEonism to the very suggestion OF
bond sale. IL became known To-Day thhl
Democrats OF the House are giving
serious consideration IN the sussestion
that Panama canal bonds be sofa 70
raise the revenue the Government must
end after Congress reconrenes
Majority members Of tho Ways and
Means Committee arc now considering
= sale Of Panama bonds. notifications
of the income taN and the lrNying of
m inheritance tax rs possible WAYS out
~ the revenue difficulties. Congress
man Ccrdell Hun, author of the income
tex section OF the Underwood law. viii
spend practically the entire Christmas
recess looking into the merits OF these
three suggestions.
IL Is argued already hy some Demo-
Gratis that a sale OF canal bonds can oe
iustjfed because this Government has
many millions invested in the canal ana
tho money spent came from the "r-
rilnary receipts OF the Treasury. WiIich
should be replenished, now that ma
tional defeuse and other expenses are
piling up.
Hostile to Direct Taxes.
The possibility that the sale Of bonds
NAV be undertaken is increased by the
fact that there is much hostility IN
Democratic ranks toward the leNy'ng
of additic nal direct taxes on such ar
ticles as gsEolenc, bank checks, pig iron
AND fabricated steel, as suggested in the
Presidents message.
There Ia no concerted movement for
the enactment of inheritance tax legis-
lation, but Mr.. Hull will be prepared
early in January to lay before his COM
mittee colleagues an analysis OF the
revenue-producing qualities of such leg
islation. The inheritance tax laws OF
various European countries and the
States are now being read by Mr.. Hull
The author of the income tax law is
understood to believe that that measure
may be so amended as to produce about
rs 900 more than it now produces
It Is realized, however. that any modi-
hcation which touches the comparative
ly smaller incomes will be exceedingly
unpopular, and II this law Is amended
the increased burden OF taxation prop
ably will apply mainly to incomes writ
ten In Ave figures.
The Democratic leaders OF the House
are not strongly opposed to the snle OF
Panama Canal bonds, and OF the sew
eral revenue schemes suggested this
seems largely in favor today.
1t is learned that members OF the
Ways and Means Committee have OBJ
tsined within the past week information
from the Treasury Department regard
ing the sale OF Panama Canal bonds
The Treasury Department reported that
~ the entire issuI authorized, but $lS4.
Sa1 $50 OF these bonds have heen SOLO
within the past nine years. There are
outssnding, authorized but not issued,
s24o,0no.oo0 worth Of these bonds at
per cent
Il is asserted that there have been
naid out OF the ordinary receipts OF the
Treasury toward the construction OF
the canal a total OF $222!OooON
Pay Its Own Way.
The Democrats are now considering
the force Of an argument that 1t is only
fair that the Treasury should be re-
in1bursed. and thRt the Panama canal,
which is to be used by future genera
tions, shall pay its own way
Discussing frankly such a suggestion
today a Democratic leader said:
THE rev Nenue situation remains up
In the air but il is certain that no
matter what direct taxes are levied they
will not be popular. The figures show
We have an investment of more than
500, 900 in the Panama canal. 1t was
The intent of Congress all along 10 have
bonds pay the way of this undertaking.
and the annual reports of Republican
Secretaries of the Treasury have urged
from time to time the sale OF these
bonds to replenish the Treasury More
than $la0,O0O,O0O worth were sold, the
last issue being in 1911.
Now that the country Is in need of
revenue for national defense it. can. be
fairly argued that the time has arrived
10 get back some of the money cXpend-
ed from the ordinary receipts of the
Government in constructing the canal
which will be used by taxpayers VINO
eventually will redeem the bonds.
THE income tax may be amended to
produce considerably more revenue, Just
how has not been worked out. There is
also reVenue-producinE qualities in an
jnheritsnce tax. and the availability of
such suCge stions will be considered in
connection with the proposal TO sell
bonds. The Ways and Means Commit
tee expects to consider the several suE-
Restions as soon as the revenue needs
Of the Governmnt are ascertainable. and
II can be said now that the bond issue
appeals to manY members OF Congress
as the best solution Of the eXtraordi-
nary problem presented
Minority Against ANY Bill.
From Republican sources it was gath
cred that the minority viii oppose prac-
tically any revenue bill advanced by the
majority The Republican view will be
that with a protective tariff heroic
revenue measures and direct taxes
would be necessary.
It is appaernt that 1t will be exceed
inSly difficult to put through Congress
legislation imposing additional stamp
taxes The suggested tax on gasolene
has practically no support. nor Is there
general sympathy with the proposal OF
heavy tax on pig iron and fabricated
steel,
The Small army and navy" contin-
gent In the House are lining up for an
excise tax on war munitions. 1t Is re-
garded as doubtful. however. that such
a bill would receive sufficient support,
and IL will probably be opposed as a
Species Of class legislation.
Every Merchant