Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1916-06-30
ADMINISTRATION CONFRONTED
WITH PROBLEM OF RAISING
FUNDS FOR INTERVENTION.
MONEY IN PLENTY TO
BE HAD, IN VARIOUS WAYS
Democrats and Republicans in Cons
eress May Divide Over Method Of
Raising Necessary Revenue-Danser
of Gold Initiation Foreseen if Stock
Now Held in Increased.
(Ry hudson c. WeIIiver.)

NiCAiSo 10 liz" lAS pAoohSAA oSASAS SN>S
ways and means committee.
1t had been the definite expectation
of the committee to report its general
revenue measures on June 29.. AS
drafted with that expectation. the bill
would very easily have cared for the
increased cost Of the government, ex-
pansion in army and navy and other
preparedness tolls. Roughly all this
was to have been accomplished by
Adding about sos. 100000 to the re-
ceipts from the income tax.
Raising about S50,000,000 from an in
heritance tax law.
Raising about 100000 900 by taxation
on the profits of the munitions of war
business ..y"
All this in addition to the older reve-
nue. devices. 1t was intended however,
to lop off about half the revenue now
derived from the emergency war reVe-
nue. measure that passed soon after the
beginning in the European war. That
measure IS producing at the rate OF
about $S0,000,000 u year. OF this $40.-
100000, represented by some of the
more troublesome and unpopular forms
Of stamp taxes. was to be pruned off. SO
that about $40,000,000 would have been
retained from this source.
Awaiting Developments.
But the sudden apparition of the
Mexican complication in the gravest
form has necessitated a pause. The ne
cessities Of revenue have already been
considerable, by reason or this develop
ment; they are expected to be vastly
hafNra long ha
measure. it is announced, will have to
wait until the situation further de-
velops.
The delay, however, VIII not be a
very long one, because the end of the
fiscal year is at hand when old appro-
priations run out and many new ones
begin to be effective. Some of the old
appropriations will have to be contin-
ued for time by resolution.
Financing d war such as will be re-
quired in Mexico if war shall be the de-
cree in that quarter. would not, by COM
mon consent, be serious problem in
the present condition of the country.
But the details of how to do it present
as much opportunity for economic and
political divergence as an egg does OF
uutriment.
Thus, at the outset. will arise one
very big question. Shall the war be
paid for out of current income, by sim
ply hosting the taxes enough to do the
business? Or shall it be paid for from
bond issues? And after that, if the de-
cision is for bonds, shall the old Pan
anna canal bonds be sold and the pro-
ceeds applied to running the war? Or
shall an entirely new issue OF war bonds
be authorized?
Parties May Disagree.
Conversations with leading men OF
both parties develop that there is pos
sibility of ar issue between the demo-
Gratis, insisting on paying war bills
thru bond issues, and the republicans
leaning to the plan of stretching current
revenues to meet these costs. 1t has
not been discussed generally enough to
justify much generalization; but there
is sign OF schism on this line.
Democrats, realizing that the costs
of preparedness have already lifted the
appropriations total far above all
| precedents, do not fancy the political
; effects of adding a further burden, rep
lrcsenting the expense of a year of wal
! il Mexico. Admitting much that Is
urged in favor of paying the current
bills for current revenues, they never.
| theless fear the political effects of such
la huge addition. Some of them frank.
| ly declare that such a program would
give the republicans a big advantage
THE very republicans who would vote
for such program would turn arount
when they got on the stump this fall
and belabor the democrats for the I'M
mense increase in taxation declared
one democratic leader. There is M
doubt that fear Of just this will mill
tate against the current-payment plan
| Against this there is an argumen
that some men Of financial experience,
have urged in favor of paying as w
70. I can state its substance in tn
terms used by man of large financia
and public experience, who believes
firmly that this method should b.
adopted.
Danger Of Gold Initiation.
1.-The country is so full of gold, AM
of other forms of money" he said
land is SO highly prosperous by rea
son of the adventitiohs conditions tina
the European war has produced, tina
there is danger of gold imitation. NJ
recollection is that we have added abou
$355,O00,O00 net, to our stock sine
August, 1914 by imports alone. w
have added also our annual production
of new gold There Is reason to be
lieve that gold imports reaiiy represen
an even greater total than the fgur
L have mentioned.
1.-THE federal reserve system has mad
credit more liquid and available; whic
tends to increase the usefulness 9
money Altogether, then, there is ever
temptation TO imitation and speculation
lone way to check this would be
increase the call for federal revenue
, firm certain favored sources, so tina
profits might be little pruned and tn
speculative disposition modified.
would be means to taking UP som
iof the slack"
Talk about revenue to pay for
Mexican war has driven people back I
. a study Of the expenses of the war wit
, Spain. A ways and means mcmbe
after observing that 1t was well mig
, impossible to segregate out the ele
. ments Of expense caused by that ws
| and to fix d sum that could be present
? ed as the cost Of the conflict, said /
calculated that. including the p,Irchas
> | of the Philippines, the administratto