The Republican. [volume] (Oakland, Md.) 1877-current, 1917-01-04
U. S. DEFICIT.OF
$279,OOO,O
Secretary McAdOo Warns The
Congress.

washington, u. u, Jan. l-Secretary
McAdoo Yesterday in a statement
to the public calls attention to the
condition of the Treasury and put
1t up to Congress to take care of any
deficit caused by the running expenses
of the Government. He says that the
impending deficit for the fiscal year
1916 is caused by the large OUTLAWS
necessitated by the preparedness pro-
gram and keeping United States armed
forces on the Mexican border.
He estimates that the deficit in the
Treasury, June 80, 1918, will be S279,-
000.0 and explains that it lis not for
the Treasury Department to prepare
revenue measures. That is the sole
prerogative of Congress.
Representative Kitchin, chairman of
the Ways and Means Committee, upon
his return to Washington tomorrow,
will call the Democrats of the COM
mittee together to begin work on a
revenue bill. That will be his response
to MIR. McAdoo's statement.
In his statement the Secretary takes
it for granted that bonds will sbe issued
for $l84, 556. 900 to reimburse the gen
eral fund for $162, AIS, 600 estimated
expenditures for the Mexican border
patrol up to June l, 1917, and for S21,-
$4,000 estimated expenditures for the
Alaskan Railway to June 80, 1918. This
Mould )eaYe S194, 817, 600 to be raised by
taxation.
The wealth and resources of the
country are so great" Mr.. McAdoo
said, that it will not be difficult to
raise this amount approximately $780,
000,00O by internal taxation, which
can be distributed in such way as
not to bear heavy or unjustly on any
body.
Congress has already authorized
the issue ofbonds to provide the $4,000, =
600 authorized for merchant marine,
and the $50, 600, 600 authorized for a
nitratep LIANT l presume that bonds
will be authorized by Congress for the
$25, 900, 600 required for the purchase of
the Danish West Indies.
There is not Included in the fore
going, anything for an omnibus pubic
building bill i
81 earnestly hope that even as to
some of the items which are listed in
the estimates, material reductions and
savings may be effected"
Projecting his statement the Secre-
tary said he opposed BOND issues to
meet current expenditures, but that
it was proper to issue bonds for such
permanent Investments as the Alaskan
railroad and purchase of the Danish
West Indies, as well as for extraordi-
nary expenditures due to national
emergencies.
Secretary McAdoo has already been
asked by members of the Ways and
Means Committee for estimates as 10
additional revenue that can be raised
within period of II months from:
First-An increase Of the normal in
come tax upon individuals and the tax
upon corporations to per cent.
Secondly readjusting the estate or
inheritance tax, allowing the exemp-
tons provided for in the present bill to
stand, levying graduated tax running
from 2 per cent. of the amount of the
estate not in excess of $50, OOO to II
per cent. of the amount by which the
estate exceeds S., 900, 600.
Third-A tax if 10 per bent upon the
excess profit during the calendar year
on 81 per cent of every person, paren
ship, corporation and association smet-
ing copper ore, refining metallic ore
and ALLOWING copper. 1t is also propos-
ed to extend the excess profits tax to
other products.
Fourth-A tax upon the manutac-
ture of automobiles, running from $40
for each machine for which the whole
sale price is less than $500, to S25 for
each machine whose wholesale price is
more than $500, and to be paid by the
manufacturers.
Fifth-An increase of 50 cents a bar
rel on beer.
SiXth-An Increase of Is cents gal
lon on distilled spirits.
Other things suggested as revenue
ralsers at this time are coffee, tea,
cigarettes, raw rubber, wool and i'm
ports.
A number of Congressman would
lower the income tax exemption and
make that tax bring in about $500, 0O0,-
900 instead of less than 5000, 900, 900 in
1916.
Tue pE0pI COpIIM