The Washington herald., 1915-08-30
GARRISON REPORT
is DUE This week
Recommendations of Naval
Board to Be Outlined to
the President.
HALF BILLION REQUIRED
Finance Problem Put Aside By Wilson
Until Precise Estimate
Can Be Made.
HALF BILLION REQUIRED

L
to the President this week his completed
report on the needs Of the army In ths
development of more adequate measure.
Of national defense. Secretary of tht
Navy Daniels, who is expected to return
to Washington in a few days, will be IN
position by that time, II Ii thought, tc
outline to the President the recommends.
tons Of the general board Of the navy
As soon as the President has digested
thoroughly the suggestions Of both de.
partments. he will lay the whole national
defense program before the Cabinet fol-
an exchange Of views. Whether any an.
nouncement will be Forthcoming before
the convening Of Congress IL not known
at this time. Before the army and navy
bills are finally drafted the President will
hold a series Of conferences with the
chairmen Of the House and Senate Mill
tary Affairs. Naval Affairs, Appropria-
ton and Fiscal Committees, 1t being the
intention, as far as possible, to lay be-
fore Congress program which will have
the support Of the Democratic leaders.
Wilson Postpones Decisfon.
The impression in Washington is that
the new program will call for a total ap-
preparation to both branches of the serv-
ice of approximately $500. 200, 900. split
S4eoAg oct"cci lHc anu navy. 1nlS
sum is In round numbers about $3.50. 900 0oO
in excess of the combined army and navy
authorized for the fiscal
year Of 1gl5-19l6 Where the money Is to
come from to make up this additional
sum Is still to be decided. Although
Chairman Simmons. Of the Senate FL
nance Committee. has indicated that the
President will finance the excess through
an issuance of bonds or short-term notes,
the entire fiscal outlook of the govern
ment Is at present SO uncertain as to have
persuaded the President to postpone a
final decision until a more accurate esti-
mate can be obtained Of the probable
revenues.
Not only Senator Simmons, but Of
ncials of the administration, have given
1t to be understood that the President
is opposed at this time to any. tinkerins
with the tariff. Discouraging as the
customs returns have been under tie
Underwood tariff. the President is said
to believe that the Democratic tariff
law should be given a longer trial He
Is described as clinging firmly to the
belief that as soon as the European
war is over and imports are back on a
normal basis. the ability Of the Under
wood tariff to produce necessary reve-
nues will be established. Not only is he
opposed. 1t is stated, to any tampering
with the general schedules, but has re-
buffed all suggestions Of a repeal Of the
free sugar provision Of the law. which,
under a graduated scale. becomes en-
tirely effective on January
War Tax to BE Extended.
; On the other hand. It is asserted, the
President would be far more recoaciled
to the idea Of increasing the rate or the
scope Of the income tax, which. as a
revenue producer, has fallen far short
of the administrations expectations. In
any event, and aside from the require
ments for larger military and naval ek-
penditures, the prospect of a continued
deficit in the Treasury. it is said, will
make almost certain an extension for
another year of the operation Of the
war tax enacted by the last Congress.
operation in December.
Available for the purposes of q bond
issue are about s250.0 900 worth of
Panama Canal bonds which have never
been put on the market. These, it Is
understood, could be sold without fur
ther authorization of Congress. Some
of the Presidents advisers, however.
show preference for a short term note
issue provided one can be obtained from
Congress on the ground that the need
for this preference seems to be bound
to an emergency. The reas.n
for this preference SENS to be bound
up in the memory which some of the
older Democrats in Congress have of the
suffered by President Cleve-
land in his second administration when
forced to make up the deficit caused by
the Wilson tariff through a bond issue.
President Wilson's insistence on q care
fully itemiZed statement from both Sec
retary Garrison and Secretary Daniels as
to the cost of the bigger army and navy
program has created the impression in
some quarters that the President, wor-
ried by the Treasury outlook. has grown
lukewarm toward the national defense
High officials of the War and
Navy departments insist, however, that
in no way has the President given the
slightest hint to justify such an assump-
tion. On the contrary, they declare that
The President is entirely alive to the fact
that his statement of a month ago, an
his intention to support q safe
md sane" policy of better preparedness,
has prepared the country to expect of the
administration a comprehensive program
If military and naval expansion.
During the past week Secretary Garri.
son has been devoting himself to prepar-
ng his cost summary, having more than
/ week ago completed his main report.
He has been at his desk night and day,
and in order to have the work
completed by the first part of this week
,aye up his usual weekend at Seabright,
Y. ].
Because Of his desire not to have his