New-York tribune., 1917-07-25

Adoo asked for to-day, and you have
$4,000, 100000 for the fiscal year-plus
whatever additional loans will have TO
be made 70 the Allies-Mr. Smoots fig
ure, if accepted, makes the total S2o'-
000,000.00
The additional $4,000, 100000 is need
ed chiefly for the army. Five billions
of it will go to provide for an army OF
1000. 900 men. in addition 20 the reg
ular army and National Guard, instead
of 100000 men, and for service OF
twelve months instead Of eight months,
which is what the original estimates
covered About $l00,000,00O will go 70
the Navy Department, S4OO,O00'oOO or
$500, ,00O, 900 for additional shipbuilding
and the rest scattering.
Huge Jump in Budget
Thus we lump in a few months to a
$4,000 900 900 or $4,000, 100000 bud.
get. And this is only the beginning OF
the war!
What is needed, and needed gravely
now that the country faces fifteen 10
twenty billion dollar budget, is finan-
cial policy. Are we going to raise Mt
McAdoo's additional six billions by sell
ing bonds, which is what Senators
Smoot and Penrose and the more con-
servative members of Congress urge,
or are We going to enlarge the revenues
from taxation?
There is strong economic support
for the idea of paying as we 80 as
much as possible of the cost Of the war;
as less expensive in the long run ana
fairer TO the average man, because II
tends TO check the imitation Of prices
that effects so severely all fixed in
comes.
How much of the six billions should
be raised by taxation and how much by
bond issues is not to be answered IN
an article like this. But 1t is clear
that the country cannot safely have
$4,000, 100000 budget without having
a wise and we'll thought out financial
policy, and an organization Tor carry
ing il out. This is a great and pros
porous nation, so great and prosperous
that the news that $6,000,0OOOOO more
must be raised for our own use and
perhaps $4,000, 600. 900 for our allies is
printed inconspicuously in the Wash
ington afternoon papers. The biggest
budget in the world does not excite US.
Apparently we shall pay cheeTfully,
whether il be taxes now or taxes later
70 wipe out borrowings. But the biggest
budget in the world is not 10 be safely
left 10 the prentice hands OF DIR.
Kitchin. One catastrophe was enough.
Tax Question To Be Met
The question of raising this money,
as the conservatives prefer, by borrow
ing, or, as the more progressive sug-
gest, partly by taxation, depends upon
the price policy of the Administration.
Before more money is sought from the
public the public is entitled to know
where it stands. One proposal here in
pr;ce-making circles is that single
Irice be made for each war commodity,
ard that the advantage the favorably
situated producer enjoys be wiped out
by a stiff excess profits tax. Thus, to
take copper, let us say, the price is to
re 25 cents. Then the advantage
which the producer with cost Of 10
cents enjoys over the lS-cent producer
would accrue to the government in the
way of an excess profits tax. In this
way big revenue could be raised. But
il the Administration includes any
such idea in it's price-fxing policy Con-
Lress knows nothing about it-not as
Congress is represented by chairmen
q finance committees.
Evidently there is room for big
fight on this issue of borrowing or
paying as we go. And the hght VIII
come either now, when this s6,00o,ooo,-
600 issue is before the country, or next
wear, when new billions will have to
be raised. The issue fundamentally is
the same as that underlying the ques-
tion of fixing prices for the public. 1t
is the imitation issue. And the rapidly
growing social sense down here will
cause It's solution before this war is
over. Borrowing fsvors the capitalist.
Taxing favors the ordinary person OF
moderate means, especially OF practl-
struck somewhere which will be fair to
both. @C