The sun., 1917-08-15
10 BILLION BOND
ISSUE IS ASKED
FOR WAR NEEDS
Additional Billion, to Be
Raised by Taxation, Re-
quested by McAdOO.
4 BILLIONS FOR ALLIES
Further Loans to Them Will
Be Necessary Before
June 30, 1918.
4 BILLIONS FOR ALLIES
Special DsspatcA TO The srS.

WAsHIHoToN, Aug. 14.-Secretary NC
Adoo to-day told Chairman Simmons of
the Senate Finance Committee and
Chairman Kitchin Of the House Commit
tee on Ways and Means that the Gov
ernment would need additional credits
Of $4,000, 100000 through new bond
issue at the present session Of Congress.
Furthermore, he told the Congressional
leaders the Government would need an
additional $1,000. .OOo. 900 TO be raised by
taxation over and above the $4,000, ,00o.-
| 900 carried in the revenue bill now pend
ing In the Senate.
OF the $4,000. 900. 900 bond issue
asked between $4,000 .O00,0 and 81.
| O0O,000.000 will be required to meet
the demands of the Allies before June
so, 1918.
The Administration, Secretary Nc
Adoo said. will insist on the bond au-
thorization at this session Of Congress-
The increase OF approximately $1,000
100000 In the amount to be raised by
revenue for the fiscal year ending June
30 next can 80 over till the December
session, as the Administration feels that
the pending revenue bill should be
enacted as soon as possible.
A Staggering Surprise.
The demands presented by the Secre-
tary came in the nature Of a staggering
surprise 10 the two leaders from the
Capitol The highest previous estimat
Of the Governments new loan demands
had been $4,000 oo0, 900 under the figure
announced to-day.
Thus the cost of the war for the first
fifteen months, including loans 10 the
Allies, will aggregate about $1S,o0O.-
10000, and there Is no assurance that
this figure will not be increased next
winter. according to information CLEANED
from Secretary McAdoo's statements to
Simmons and Kitchin.
And this amount, according to Chair
man Kitchin, is mere chicken feed
compared with the demands which the
war will make upon the wealth of the
American people next year.
Within an hour after Secretary Nc
Adoo had conferred with Chairman
Kitchin plans were under way for rails
ing the money. A meeting OF the Ways
and Means Committee was called for
August 20, and arrangements made for
the House, now taking a three day re-
cess. TO resume its regular meetings on
August 81 and expedite financial legis-
! lation. The bond issue will be agreed
McAdoO Urges LeGislation.
| In his conference with the chaIrmen Of
the revenue producing committees Mr..
McAdoO took up also the general legis-
lative programme for this session He
urged strongly that following the enact
ment OF the pending revenue bill Con-
gress press through the Administration
Insurance and war compensation bill In
troduced last week in both houses He
also urged that the second deficiency
bill. now in course Of preparation In the
House Appropriations Committee and
which will carry nearly $4,000, 900 900,
be pressed to enactment.
Mr.. Kitchin informed the Secretary
that he could count on the passage by
the House of the insurance and deficiency
bills and a further authorization of
loans to the Allies at this session.
1t was pointed out that while the
deficiency estimates recently submitted
for the War and Navy Departments,
called for appropriations aggregating
more than $4,000. poo. 900. the Appropria-
tions Committee is considering withhold
ing until a later session some Of the re-
quested appropriations, which are not
pressing. 1t was planned to cut the next
deficiency bill to between $4,000. o0O, 900
and $4,000, 100000 and the war bill for
SIS 900, ,O00, 900.
Mr.. Kitchin told newspaper men
after the conference that any increase
in revenue would have to be borne by In
come and excess proflts taxes. as the
Senate is unwilling to take advantage of
many forms of taxation carried In the
original House revenue bill