The Birmingham age-herald., 1915-11-27
SIMMONS |NDORSES M'ADOO'S 'SPLANFOR DEFENSE REVENUE Chairman of Senatorial Fi- nance Committee Falls in Line With Administration KITCHEN HOLDS OUT
 AGAINST NEW PLAN New Majority Leader of the House Will Continue to Oppose the
 Administration Policy
 on Taxation

| Washington. November 2e-Secretary
 McAdoo's plan for raising through in
 ternal taxes additional revenue needed 1 by the government to meet deficit and cover the initial expense of army and navy increases were indorsed today by Senator Simmons of North Carolina chairman of tho finance committee, here to prepare for consideration of revenue | problems which his committee must aid | in solving.
 | While Senator Simmons was announce l ing his views, Senator Smoot of Utah, a leading republican member of the finance committee. gave out state ment attacking Secretary McAdoo's gen eral financial statement issued yester- day The Utah senator asserted that all of the secretary's revenue estimates were too high and those for expendi-
 lures too low and that misleading book
 keeping changes had been made Differing from his fellow North Caro- linian, Representative Kitchin. new ma jority leader of the House. Senator Sim ! mons announced himself as an earnest
 advocate of adequate defense and mer- | chant marine legislation and expressed the conviction that the present income
 tax exemption was far too high and that
 gasoline and automobiles should share
 the burden of the war tax.
 SIMMONS APPROVES IDEA Although l have not had an oppor- tp Inv ta ct1 of the administration defense pro-
 sramme," said Mir simmons T approve
 the general idea which l understand un-
 deries It. With reference to prepared ness generally I think the sentiment of the people of my state would be against
 what has been characterized as frenzied preparedness, but overwhelmingly in favor of what might be termed common sense preparedness; that is, prepared
 ness that would enable us to protect our selves if attacked and to defend our rights upon the high seas. as well as the land, if these rights are invaded. would
 have navy adequate not only for de- fense. but adequate to assert our rights.
 T think the reasons why the govern ment should provide for merchant ma rine are even greater today than they
  Congress was introduced and I believe
 that the reasons will be stronger when the war closes than they have been during it's continuance, because when the war closes and the scramble for international
 trade sets in. as 1t inevitably will our position will be a pitiably helpless one if we have to depend for the transporta- ton to accommodate our nearly S5,000, ,O00- GOO international trade, almost wholly upon our competitors in that trade. I like very much the suggestion of acquir-
 ing ships that may be easily convertible into auxiiaries for the navy.
 'I am not in a position to express any definite views about revenue needs be- cause I have not conferred with Presi- dent Wilson, the Secretary of the Treas ury, or members of the finance committee
 Assuming that the deficit will be no larger next year than this, it is evident that we will have to provide for raising consid- orably larger sum of money.
 SUGAR TAX TO STAND
 "l assume that the present tax on sugar
 will be continued. l assume that the present war tax will. in the main, be continued with some possible changes think that there will be some additional subjects of taxation ] see the sugges- ton that gasoline and automobiles should be taxed. Speaking personally, I was in favor of this tax when the present law
 
 a just tax and believe that these two ar ticles can well afford to bear a share of the burden that has been imposed by
 war conditions.
 .'I incline also to think that the income tax exemption is too high. It had re- suited in less than 500000 people out of total of 10o.OO0,OO0 paying the entire tax derived from incomes. That does not seem to me to be quite fair" In his statement analysing Secretary McAdoos figures, Senator Smoot asserted 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. Mir Me Atioo's table showed that on July !. 1915 there was credit balance in the general fund of sl04, ,l7o, l0o. 7S. whereas, the senator declared, the official daily state ment of the treasury for that date showed Fthe net balance in the general fund to be s76.157. .S3l. .3S On September 30. 1al5 the treasury statement, according to Senator Shoot showed net balance in the gen eral fund of $40, ,S9S, ,S9t9l, while, he added. the next days statement without the addition of the proceeds of bond sale and with an actual decrease in the reVe- nues of the government over expendi- tures shows the balance of sl2S,o6Soia.Zs.
 SHOOTS OPINION c,rhis apparent increase of $Stlbf.- e5O s6 in the treasury balance says MrI Smoot, was in bookkeeping alone and was procured by the transfer rom the liabilities to the assets side or the ledger of the disbursinS officers pal tances and the government bank note redemption fund, both of which nave 1 always been recognized as liabiiiues lby the government, and by the 'neiu- I sion of subsidiary silver coin' minor coins and silver bullion. none or which | had reckoned as available for the pay nent of government expenses l Senator Shoot further declared that
 u,i,en the present administration took I over the treasury in March. lsi5 tnere was a net general balance or Sia',sSo'- { }7i1s7S. On September So 19la, he con 1 tiniieG. that balance had been dimin- l lishei bv s10s 4S6.s16.s1. As to the esti- mates. Senator Shoot said;
 1 l"Is am of tho opinion that the esti- | r,ates, of revenue contained In Mir. No {! Adoo,s latest statement are excesstye ana that his estimate of disbursements l is foo small This certainly is the case l u.ith the revenue of $i5.0o0o00 expect | cd of sugar for the months of May and 'r,ne, f9fs and tho disbursements for < supp,emental estiamtes and deficien cias for the fiscal year 1916 will be nearer $2O,o00.000 than $l2,ooo.oeo' |