New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-07-01
Democratic Leaders Agree
on Issue if Revenues
q Fall Short.
CONGRESS TO PASS
NECESSARY MEASURE
Treasury Officials Hope BAL
ance on Hand and New Taxes
Will Be Enough.

Washington, June 30.-An agreement
under which Congress is expected TO
authorize a Federal bond issue to meet
the extraordinary expenses of the Next
can emergency was reached to-day by
Administration leaders Under the plan
such an issue actually will be made
only in case the ordinary resources of
the Treasury and the additional S2lO,-
100000 expected from the Administra-
ton revenue bill prove insufficient.
What form the bonds Will take,
should an issue be found necessary, has
not been determined. Some leaders
favor issuance of some of the Panama
Canal threes, of which S240,5G9,0 900 re-
main in the Treasury. Others believe
a special emergency bond should be put
out. Treasury officials emphasize,
however, that in view of net balance
of nearly 5000, 900 on hand at the
end of the fiscal year tonight, the au-
thority asked of Congress may not have
to be invoked.
Wilson for Bonds.
The whole revenue situation has been
gone over infinitely in a series Of con-
ferences by Secretary McAdoo, Chair
man Simmons. of the Senate Finance
Committee. and Chairman Kitchin, Of
the House Ways and Means Committee.
Mr.. McAdoo is understood to have pre-
scented President Wilson's view thai the
extraordinary expenses of the NSNichn
crisis should not be met out Of current
revenues, and the committee chairmen
agreed that a bond issue might be ad-
visable. Another result of the confer
ences was a decision 10 put the new
revenue bill through Immediately. 1t
probably will be passed by the House
next week.
The exact amount Of the Treasury
surplus for the fiscal year Will not be
known until tomorrow, but at the close
of business yesterday II was STA H.
845, and officials believed to-day's re-
ceipts would increase 1t TO more than
S200000,000 Total income tax receipts
to-day were S6Sl9l,6 $50, compared with
S43.525,l49 a year ago.
Internal revenue Offices throughout
the country kept open until midnight,
and the yearly total from the tax was
100000 Nearly 80 per cent Of the $685.
100000 it yielded last year came IN
during the last day Of the fiscal year.
The total ordinary receipts for the
year, including June 29, were S7l2,-
654,574.
Senator Simmons and Representa-
tive Kitchin emphasized tonight that
they were in hearty accord with the
Treasury's proposal to segregate the
expenses of the Mexican situation
from the ordinary government eX-
penditures. Senator Simmons said the
proposed bond issue would be restrict
ed to pay only this one class OF ex-
traordinary expenses.
Restricted to Mexican Costs.
"All general preparedness expense
involved in the army reorganization
and naval construction measures Will
be met by revenue legislation now IN
der consideration" said the Senator.
1--WE believe it TO be the best policy,
and that will be the recommendation
we shall make TO Congress"
Representative Kitchin declared he
strongly favored bond issue and be-
lieved that course would be adopted.
The revenue bill which Mr.. Kitchin
will try to put through the House next
week proposes TO raise SlOO,OOO,OOO
additional from a surtaX on incomes,
$50. 600 900 from an inheritance tax and
about S60,000.0O0 from a tax on net re-
ceipts of war munitions concerns. It
will be introduced tomorrow and prob
ably reported from committee on
Wednesday. Present plans are TO be-
gin debate on it next Thursday under
a special rule providing for a final vote
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