Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1917-08-02
WAR BUDGET WILL
EXCEED 8 BILLIONS
May Cost u. 8. Ten Billions to
Carry the War through to
Next July.
ESTIMATES IN CONGRESS.
War Department Calls for new Appro.
priations Of sS,27s. go. 00o-Other
Depts. to Ask for $1,000, 900, 900.

Washington, July o6.-The new war bud.
get to carry the government through to
next July and to cover additional credits
to the allies promises now to far exceed
eight billion dollars and may mount to ten
billions.
War department estimates sent to Con-
gress to-day call for new appropriations
Of $5,27S, 636 900 for that branch Of the mill
tary establishment alone. Estimates to-
falling another 81 .0Oo. O00, 900 or more are ex-
pected tomorrow when the other DEPART
ments report their needs, and in addition
Secretary McAdoo has indicated that be-
fore the year is out Congress will be asked
for $4,000, 10000 appropriation to increase
the fund available for loans abroad.
AS soon as the departmental reports are
in. the appropriations committees Of Con-
gress will 60 to work on an immediate
budget which probably will total in the
neighborhood Of $1,000 100000. Meantime
the Senate finance committee, which has
the war tax bill in charge. will meet to-
morrow to consider what part Of the new
expenditures is to be provided by taxation
and on what commodities the new levies
are to fall. The committee hopes to have
a revised bill ready early mex. ws-k.
Congressional leaders do not expect to
have to provide Immediately for the addi-
tional credits to the allies. as treasury
officials have indicated that no appro-
priation for that purpose will be requested
until the next session.
The gross estimates submitted by the
war department to-day totalled $5.s17. SIS.
A7, but that covered all existing and
expected deficiencies In the department
funds. including upwards Of $40, 900 900
already appropriated for the aviation pro-
gram. This latter item will not be in
cluded in the budget. but Congress will
have to provide revenues to meet It since
It was not on the ledger when the war
tax bill was framed.
How much Of the new war expenses
should be raised by taxation and how
much by bonds or treasury Indebtedness
certificates Is a warmly debated question.
Committee sentiment tonight seemed to
be In favor Of increasing the 81, 670, 900, OOo
war tax bill only to about 1900, 0Oo, 900
with authorization both for a new bond
issue, possibly at higher interest rate
and In serial form, and for issuance OF
treasury certificates of indebtedness.
Secretary McAdoo is said to favor a
much larger levy Of taxes. and a few
committeeman favor increasing the bills
total by 1.ooo.00o.00o. or at least to
| 81. 225. 200, 900.
Whether the interest rate on the new
bonds shall be increased also is causing
much discussion. Some committee lead
ers fear 1t may be necessary to issue
four per cent. securities. Such action
also would Increase the three and one
half per cent. rate on the recent issue
Of Liberty bonds. as the law provides
that II bonds subsequently issued shall
bear higher rate. the first issue shall
also bear the increased rate. There is a
strong sentiment that the new bonds shall
be in serial form, instead Of running for
20 years.
AS to the sources Of the new taxes,
sentiment In the committee apparently Is
, tending toward securing the bulk Of the
increase from war excess profits and in
comes. Excuses or consumption taxes
and few other minor new levies also
are being considered.
Chairman Simmons said tonight that
while the present years appropriations al.
ready total 50. z26 0o0, 900 it is estimated tina,
only about s. .OOo. 900 Of that will be spen,
during the present fiscal year. The com.
mittee's tax bill has been drawn on that
basis.
The largest single item in the depart.
| ment's estimate Is $2,46S, 613, 900 for arma.
Lment of Notifications. Others include:
Pay. $715, 82S. 40: transportation, $3.50 49,.
Sob; clothing and camp equipment, $751;.
5oSoN subsistence. &s2s. 672.2ls; automatic
machine rifles. S17o.27.0o0: medical sup.
plies and hospitals. 800, O2s 900; horses, ST..
Isl, 466.
Signal service. 50. ZOO. 900: quartermasters
department. $163.s17.925: barracks and
quarters. 81. 1ss. 900; civilian training
camps. $2.11s.ooo: engineer department
80. 100000; ordnance stores. ammunition
$s9ba.Oo; ordnance stores supplies. So.
Ooo. 900: armored motor cars. "a. 75o, 900; and
submarines. 100000.