The Washington times., 1915-11-26
PAYING THE FIDDLER

meet the necessities OF the new naval
and military program of this Gov
ernment cannot, Of course, be de-
vised in detail until something def
mite is known about the character
and scope of that program. On the
other hand, the program cannot be
accurately formulated till 1t is rea-
sonably certain that the money with
which to carry it into execution will
be forthcoming.
But it is safe for Congress to go
ahead planning it's program of ex-
pcnditures, because no Congress is
going to spend money without a rca-
sonably fixed purpose also to pro-
vide it. The nation is wealthy
enough, the people are willing
enough, to carry the burdens Of a
proper defense program, to make it
safe to go ahead. There never was
a time when stronger arguments in
favor of the budget system Of reve-
nue. management were to be deduced
from current experience; but the
budget system has not been estab-
lished, and the cxigency cannot
await it's creation.
There will be plenty of discussion
of the revenue proposals of Secre-
tary McAdoo; but it is likely that
his plan of "pay as you go" will
appeal to most people and be ac.
cepted by Congress. The emergency
that requires this country to in
crease it's revenue, say, from thou.
sand to twelve hundred millions OF
dollars a year is not one that justi
fies issuing bonds. The billion-a
year now spent is raised without
grave imposition on anybody. Tt
add two hundred millions to it's sun
would not be seriously noticed. 81
far as concerns the country's capac
ity to pay, there need be no grea
worries, but there is room for dis
agreement about the precise meth
ods through which money is to b.
produced.
The McAdoo plan contemplate
. increasing customs revenues at n
point. 1t proposes to repeal tn
free-sugar clause, which in the nor
, NAL course Of events would becom
! effective May next and thus to re
tain some $52,O00,000 annual in
come which would be wiped out
, this clause were left on the stat
: utes. That this feature will b
readily adopted is not seriously t
= be questioned. 1t took all the ir
: f1uence that the Administratio
y could bring to bear. to adopt tn
n schedule that looked to ultimat
free sugar. 1t will be a good de;
easier to repeal that clause than
was to enact it.
But aside from this concession
r revenue necessities, the Administer
: ton proposes to give no recognize
v to tariff needs. 1t will stsnd by II
n Underwood measure, ant ask Il
country to pay direct taxes instes
= of indirect ones that mean prote
v ton. On this point there will
: made up an issue that will not fs
n to have important bearing on Il
e work of the coming Congress and I
!" the Presidential campaign Of ne
2 year.
The Treasury plan, it will be o
r served, does not include any ado
IS tional imposts on liquors, eth
N malt or distilled. Explanation Of II
l. is found in the statement from hi
I'd Administration quarters that t
e. last increase Of malt liquors W
ar about all the industry was thoug
c, able to bear, while the tax on d
OF titled liquors was already so hi
that to increase it would be like
to to reduce production and thereto
IS, revenue. This, Of course, is pur,
,e mathematical calculation, with
a. consideration for sentiment concel
to ing other than revenue aspects
ed the question. There till be cons
Id Grafton of those aspects, however