New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-06-28
AT Odds Over Best Way
to Provide Costs OF
Mexican Troubles.
BUDGET TO CARRY
$35O,O00,00O MORE
Preparedness Measures Make
Heavy Increases in Reve'
nue. a Necessity.
fFrom m. rribun. Bureau

From The Trfbun- Bufeau-I
Washington, June 27.-After a con-
ference late to-day between Secretary
Of the Treasury McAdoo and Chair
man Kitchin of the House Ways and
Means Committee it developed that
there is friction between the Admin
istration and the House over the
means Of providing ~funds for inter
vention in Mexico, should Intervention
come. The Administration, afraid or
bonds as a political issue, wishes to
adopt the pay-as-you-go policy, rais-
ing all the money needed by taxa
ton. The House leaders think that
n considerable part Of the expenses
should be paid by the sale OF Panama
Canal bonds.
Instead of raising sl50.000,000 by
new forms Of taxation, as proposed
by Secretary McAdoo last month. 1t
became evident to-day that 1t will be
necessary TO raise about $3.50 100000
In making this estimate in May Mr..
McAdoo figured the additional cost of
preparedness during the next fiscal
year over the current year az from
100000 to Sl00,000,000
The Navy Department completed to-
day its figures on the naval bill which
has been drawn up by the Senate
subcommittee. The amount appropri-
ated for 1917, according 10 these hg-
ures, will be s311 .4O6,343.55, which is
more than 1851 100000 in excess of
the present years appropriations.
Figures of Big Increases.
Figuring roughly, the increases in
the preparedness bills pending or
passed by Congress for the next fs-
cal year over similar bills for this
year are: Navy. $751; 100000; army,
S67,000,000; Notifications. S15,000,0OO,
and urgent deficiency, s26,000,000, a
total of $3.50, 100000.
This is about S200,000,000 in excess
of what Mr.. McAdoo figured when he
estimated that Sl50,000 900 additional
revenue would have 70 be raised. The
revenue sources already tapped include
the sugar and war revenue taxes, which
have been continued. Part of the war
revenue tax-that based on stamp taxes
is scheduled TO be repealed, and every
cent cut of by this repeal must be re-
placed before any start az raising the
huge total of $3.50. 100000 is made.
It is possible that the naval bill as
finally passed will not carry the big
building programme provided in the
ub-committees bill, but material re-
auctions are not expected. The bill has
the approval OF the two ranking Demo
Gratis on the Senate committee and Of
Senator Lodge. the ranking Republican.
II is believed TO have the approval of
substantial majority Of the Senate.
The tendency in the Senate this year
has been 10 boost rather than cut COM
mittee reports relating to prepared
ness. President Wilson and Secretary
Daniels have agreed to speed up the
building programme so as 70 provide
the original fve-year programme IN
three years.
The army appropriation bill also is
likely 10 be so increased by the Senate
that instead of exceeding last years
bill by S87,000,000 it will be more than
S10O,000.000 greater.
Militia Expenses High.
The enormous expense of paying and
providing for the National Guard and
the furnishing of equipment must be
provided for in the revenue bill to be
passed
SIR. McAdoo's figures submitted 20
the Ways and Means Committee indi--
Gated that the balance in the general
fund. exclusive of discussing officers
credits, probably would be Sl50,0OO,oOO
at the end of the present fiscal year
and S13.500,0 900 at the close of the fiscal
year 1917. This indicates that Mr.. Nc
Adoo figured as closely as he dared IN
estimating the amount TO be raised IN
addition. On such a basis of calcula-
ton il would be dangerous, in view OF
the prospect of Intervention in Mexico,
L. f1e. h.
pense such Intervention would entail.
Even a budget which would raise
$3.50 900 900 in addition TO any short
age caused by the wiping out OF the
stamp taxes would not, according 10
Mr.. McAdoo's figures. as compared
with the present appropriation figures,
provide anything for Intervention. IL
is pointed out also that, as nearly as
can be figured by outside experts, the
present net balance in the Treasury
includes about SS8,000,OOO Of funds
which formerly were not counted as a
part of that balance.
The House Appropriations Commit
tee reported to-day an emergency Dill
S26,000,000 for extraordinary
EXPENSES of the army and National
Guard caused by mobilization for Mex
lean border service. Most OF the
amount goes for equipment and trans
portation.
Another bill reported to-day provides
for continuing all ordinary expenses of
the government through July. 1t was
made necessary because several annual
supply bills for the fiscal year begin
ming July have not been passed. Inc
hill carries a sum equalling one-twelfth
of the appropriations for year.