The Richmond Virginian. (Richmond, Va.) 1910-1920, 1916-12-30
PANAMA CANAL BONDS
AVAILABLE TO MEET
PROSPECTIVE DEFICIT
Extraordinary Expenses Due To
Mexican Situation and Prepared
ness May Make Issue Necessary.
WILL TAX EXCESS
PROFITS ON MUNITIONS
May BE Attempt Made To Reduce Ex-
csnption Limit To $4,000 On In
come Tax-John Barleycorn May
Be Again Held Up.

Washington. Dec. 29.-President
Wilson has tentatively agreed with
administration leaders in Congress
on bond issue to meet part of the
treasury deficit which confronts the
government for. the fiscal" year -erti-
ing June 80, 1918, estimated at about
$3.50, 100000
With Secretary McAdoo tie
President Is working on other pfans
for raising additional revenues,
The President has pointed out that
he believes a bond issue should be
used only to meet temporary and
emergency expenditures. Many of
these have been caused by the Mex
lean situation.
The treasury already has author
ity by previous acts of Congress to
issue Panama bonds and about $240.-
100000 OF these are available. They
would bear 3 per cent
The deficit figures differ accord
ing to congressional and admini-tra-
tive viewpoints. Secretary McAdoo
estimated in his annual report the
actual deficit in the working bal
ance of the treasury on June 30
1918. at 5,5s3o0o which accounts
for appropriations unexpended- COM
bined with the leftover balance.
The congressional appropriations
committee. basing their estimates
upon the actual appropriations with
out regard to whether the execu-
tive departments spend all or part of
the appropriations. figure s313,269.-
6b4 as the deficit
To Tax Excess Profits on Munitions.
Members of the House Ways and
Means Committee have agreed upon
a tentative plan to submit to the
President and Secretary McAdoo for a
revenue bill to meet the deficit which
Representative Fitzgerald. chairman
OF the Appropriations Committee. has
predicted for the fiscal year 1917
1918
1t is agreed that additional reve-
nue. must be arranged for this ses-
sion II an extra session is to be
avoided. for the need OF additional
revenue is imperative.
The purpose Is to readjust the In
come tax so as to increase the nor
NAL tax upon individuals and the
corporation tax to approximately three
per cent and rewrite the estate tax
provision Of the revenue act so as
to make 1t bring in from SIS, 900, 900
to $50,000.000 more than It will do
in its present form. An effort is
to be made to reduce the exemption
limit of the income tax to $4,000
A special feature OF the new bill
will be an excess profit" tax of ten
per cent during the calendar year
1915 on copper ore and other mate
rial used in the manufacture of mu-
nitions. 1t is estimated that this
would yield from s100.000.000 to
$3.50. 100000 a year.
The old fight over an Increased
liquor tax will be renewed. and 1t is
believed now that an increase OF so
cents per barrel, making a total Of
50 per BARREL on fermented liquors
can be obtained.
A renewal Of the proposition to
tax automobiles will be made. This
would include a tax of $40 or $12
for each automobile made for which
the wholesale price Is less than $500,
15 to SIS for machines costing more
than $500 and less than $1,000, $40
for machines over $1,000 and less
than $4,000. and $25 for those more
than $4,000.