Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1916-08-18
BONDS NECESSARY
TO MEET EXPENSES
Senate Finance Committee Rec.
ommends Issue of $13O,OOO,OOO
for Extraordinary Purposes.
MEXICAN SITUATION COSTLY
Vast Sums Also Have Been Ap-
propriated for Program of
Preparedness.

WASHINGTON. August ia bond
issue of s130,0o0,00O TO meet extra
ordinary government expenditures WAS
recommended Tonight by the Senate
Finance Committee with the concur
renee OF the Treasury Department. The
bond issue is urged on the report Of
the Finance Committee flled in the Sem
ate late to-day on tho s205. 600, 900 reve-
nue. bill. In addition to the proposed
issue and the revenue bill, the Finance
Committee asserts that a further ap-
preparation Of SS6,0oo.000 will be neces-
sary to defray the expense OF opera
tions in the Mexican emergency If con-
ditions Oh the border continue as they
arc now after December |, 1916. The
$3.50, 900 to be provided by the pro-
posed bond issue, the report says, will
meet Mexican expenditures only until
the end of this calendar year.
GENERAL. STATEMENT
MADE BY TREASURY
Accompanying the Finance Commit
tees majority report, submitted by SEN
ator Simmons, was general statement
from the Treasury Department. ..sti-
mating disbursements for the fiscal
year 1917 at s1.l26.243.OOo and receipts
at s7S2. 100000.
The total appropriations for the
fiscal year 1917, exclusive of those car
ried In the so-called shipping uin.
which is to be betrayed by the issu-
ance of Panama bonds. will exceed the
appropriations for the fiscal year 1916
by about s469.0OoO00." says the report
This increase is represented prin-
cipally by Sl67 900. 600 additional
amount appropriated for the navy:
slb6,ooo.oo0 for the army: $4,000.
quo additional amount appropriated
for fortifications; 100000 for de-
ficiency appropriations; about s35. .oGo,-
ooo OF which is due to the Mexican sit
uation and increased requirements of
the army and navy-and 10000 900
for nitrate plant. which is "A prepar-
cdhcss appropriation. The increase i'm
the appropriations for the present fiscal
year other than these. is not beyond
the normal increase
COST or PREPAREDNESS
RESPONSIBLE FOR INCREASE
hut for the additional expenditures
'''A"e necessary 20 defray the cost OF
preparedness. the increased revenue to
be raised by this bill would not ho
necessary. ana the estimated roccin,s
under the present law would be con-
disbursements for the fiscal wear 1,l7
In this connection attention Ia c,1,oa
70 the fact that S2l 100000 OF tho nor
maj increase for the present fiscal year
represents the amount Appropriated for
rural credits and good roads
In statement furnished your com.
mittee August II. 1916. the Treasury
department estimated disbursements
ior the fiscal year 1917 at s1.l26,243.O0o
ana estimated receipts for 1917 ar
S'oZ'ooo.ooo, making the excess OF dis
easements over receipts S363o43O0
rms total includes appropriations
amounting to about $4,000, 900 to meet
extraordinary expenses and disburse
nents incident to the Mexican situ-
alton, and the mobiliza ton of the Ma.
tional Guard
FOLLOWING CUSTOM
OF ALL OTHER NATIONS
This would simply be following not
only the custom of this country. but of
all other nations under similar circum-
stances. Deducting this amount from
the estimated disbursement over re-
ceipts. the additional revenue required
TOR the year 1917 would amount to
S2a4'243.o0o. 1t Is estimated that tho
Dill as amended by your committee
Will raise S2o5,o00,O00. leaving a bal
ance of s29243o00 to be taken from
the general fund OF the Treasury,
winch amounted on the 10th inst, ex-
Guiding credits OF dishursinG officers
to sl34.337S95. Your committee is adj
Viscd by the Treasury Department that
IL is safe to estimate that this amount
can be taken from tho general fund
without seriously embarrassing the
Treasury"
In its analysis Of the revenue bin
as revised by the Senate committee,
the Treasury Department estimates
mat the annual revenue to bc derived
will be Sl0a,500.0OO from income tax:
inheritance tax, s20.0OO.OO0 for 1917
CATER the law Is in fun force. approxi-
matcly s65.ooo.ooO); munition manu-
facturers tax. sto.rOo,OO0: lnisccI-
lhncous. including beer. liquors stamp
taxes. etc. s35.5oO.oOo: total OF
S2O5. O0O. 900.