The Washington times., 1916-07-01
administration Plans
Bond Issue to Cover
Cost of Possible War
Income, Inheritance, and Munitions Taxes Will Pay
For Preparedness, According to Democratic
Revenue Bill Introduced Today.

has been established It should be able
after a reasonable period TO stand on
It's own feet. without Government pro-
lection.
Leaders of the party consider It en-
sue Of 500, ,Ooo. 900 to Si25, ,ooo. 600 to offse,
the demands OF the Mexican imbroglio
According to the House majority leader
there is no disagreement between Secre-
tary McAdoo, himself. and Senator Sim.
mons regarding tho prophet: of bond
Issue.
Care for Running Expenses.
Democratic leaders say the new rev.
enue bill and q Treasury surplus will
care for practically all of the running
expenses Of the government and the ma
tional defense appropriations for the
next next year. II q bond issue comes con !,
and ends CT preparedness appropria'
tions.
MIR. Kitchin estimates that the Mexi.
can situation has added about tlOO. 900, ,oo'
to the Governments expense bill for the
1scal year 1917. More than half of this
he says. applies directly to Mexico.
The remainder represents additions ia
the army and navy bills that doubtless
would not have been suggested had
not the Mexican situation become acute.
It may not be necessary to expend all
there would be less likelihood of bond
issue.
However, II became apparent today
that the Administration will not hesitate
to issue bonds II such an issue IA neces-
sary as n part of the preparedness pro-
gramme.
Do No. Disgrace.
There Is no disagreement" said Mr.
Kitchln today. among Secretary Nc
Adoo, Senator Simmons and myself. re.
garding these matters. We are agreed
that any extraordinary expenditure;
which have heretofore been made oI
which hereafter may be made on ac-
count OF the crisis In Mexico. should no,
be taken out of the people by taxes al
the present time.
nary expenses should be financed by ar
issue OF Government bonds. SO FAR th'
Appropriations traceable to conditions II
Mexico, including those that have peer
approved by Congress or are now befor' or
Congress-, aggregate about sl25,OOo.OOo
This amount, and any further amounts
necessary. should be paidfor out o.
| bonds.
the United States in the past to NEE
| all extraordinary expenses for miitar!
purposes by Issuing war bonds. Thi
practice Is followed by all other ma
lions That custom. the justice o
| which is apparent. will be followed II
| this instance.
"It would be impossible to include II
the present revenue bill ltaexs TO NEE
expenditures the ultimate extent o
| which we know nothing about at thi
time. These Mexican expenses ma!
amount to a great DEAL or. as tn
crisis now seems less acute, they ma!
! amount to comparatively little. II J
| even possible that the amounts alread,
appropriated may not be needed In full
! II these appropriations are not USE
we would be in position OF taxing tn
people unnecessarily
mo decision has been reached as I
the character of the bonds to be issued
We have not decided whether the
should be war bonds. to be authorizes
under a joint resolution OF Congress. o
whether We should sell bonds alread'
authorized and no wheld In the Trea
ury Panama Canal bonds).
1.-THE revenue bin will Introduce to
enueh or thi smbount s2lo 900 200 wi
| be new revenue and 1900 900 will b
revenue carried over from .he emerg
ency war bill Of two yars ago. TIL
bill was based on estimates Of ex
penses submitted before the Mcxica
situation became so acute and costly
! The Democratic revenue bill, Nj
Kitchin said, would be called up In tn
| House under a special rule next Thurs
/ day The House will not attempt I
| wdork on July Band l. Passage o
| the revenue bill Is planned for mex
! Saturday.