Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-04-07
WAYS OF FINANCING WAR
CONSIDERED BY CABINET
First Years Demands Expected to
Run Far in Excess OF $4,000
100000 Already Asked.
TO ISSUE LOANS TO ALLIES
Official Dcputation From Great Brit
aiu, and Probably From Other En-
tentc Governments, Will Visit l..
$. to Formulate Program.

WASHINGTON. April 6.--Methods of
financing the war with Cierns,my and
of extending huge loans TO the allies
constituted que OF tho chief subject
considered at to-day's C'abinct meet
ing.
Indications arc that the first wears
demands upon the financial resources
OF the country will ran far in excess
Of the 100000 600 already asked of
Congress, and may approximate $1,000
600. 600.
Fond issues already authorized also
were discussed. These total s,I4.oOO.-
ooo. Including the .OOO.0 600 of
Panama Canal bonds uuthor izc,l. hut
not issued. Announcement by Sccrc-
tary Mc.\doo as to the details Of one
or more of these issues Is expected
shortly. possibly within twcnty.four
hours.
Fiuanr'ui aud other co-opcratiou
with the entente governments is ono
OF tn" chief topics under consideration
by tho Council Of National Defense.
ana plans looking to tho issuance of
loans to the allies arc expected TO take
definite form within tho near future.
opinions as to the mUun OF the frs,
loan vary between 5000 900 and So
GEO. oo0. 600.
An official dcputation from Great
%f;ritain. probably one from France and
possibly others from other allied GOV
crnhicnt" VIII visit the United States
shortly to assist in formulating "a def
nit" program adcuuat" to mcc, the
most pressing needs OF the allies. and
AT tho same time imposing as Ugh, a
burden AS possible upon this country.
ro Isl; RAISED wy GREATLY
INCREASED TAXATION
1t seemed likely o-niSht that a
heavy percentage of tho war bill will
nc raises by greatly Increased taxa
ton. and that whatever bond issues
arc necessary will be placed through
the Federal Reserve Board or raised
by popular Subscription. or 10y both
methods.
Radical revision OF tho present in
como tax is considered as among the
robahifitiss of tho war revenue meas
urc TO he placed before Congress. This
revision will probably concern both cN.
trcincs Of tho scale. involving the low
erinG Of tho present exemptions OF
$1,000 and $1,000 Individual incomes
and heavy increases in tho rate OF
taxation At present imposed Oh in.
comes OF $4,000 and over.
Tho opinion prevails among mem
bcrA OF tho Ways :nd Means Commit
tee thai the Sovcrmmcnt's revenue
trom this course alone could he
hroueht without undue hardship TO
any onr, UP To 81 1000 0o.cOo annually.
ana possibly exceed this sum.
The Income tax At present rates viii
Weld approximately sS.5, 0po. 900.
ItcNision of the excess profits TAX
likewise seems certain. The present
measure. which allows an cxcmption
oi 5000. and taxes net earnings of
corporations in excess OF y. per cen,
annual! at the rate of : per cent. Is
designed to yic,d so2S.onc. 900 annually.
ono estimate is that tho government
could obtain $1,000. oo0. 900 ANNUALLY
from this source. instead Of The sonG,-
100000 contemplated under the present
law.
Other proposals include increased
taxation on whisky. hccr and toh,,,o
and revision OF the estates TAN.