The Mena weekly star., 1917-04-12
S3,5O2,5l7,OOO
 TO DEFEND NATION
Seeks $2,952, ,537 ,933 For War Department AIone-0m- cials Say Billion Can Be Raised
 From Internal Revenue.

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 Washington, April 6.-Congress was asked today to provide immedi- ately s3,502 2,5i70oo to finance the war for one year, approximately as follows:
 For the War Department, $2,952,- 537, 7,933.
 For increasing the authorized strength of the navy to 10000 men and the Marine Corps to 30,00O men, Si75, ,s55,7 762.
 For other necessary expenditures for the naval establishment at the discretion of the president, s262,- s55, ,79O.
 For the coast guard, so that it may perfect and bping to high state of efficiency, it's telephone system of coastal communication, $600000
 Increased taxation, higher state taxes, larger income, whiskey, beer, tobacco taxes and new methods of taxation probably will be resorted to to raise the huge amount.
 Reserve Banks to Help.
 Unofficial estimates are that the banks of the federal reserve system will be able to absorb up to S2,000,- 100000 of war bonds at once at rate of not exceeding 3la per cent.
 Secretary McAdoo said that he believes the government will have no difficulty in raising the necessary finances, but declined to indicate the probable methods
 Treasury Department experts are compiling information for the pres lident and congressional committees lin drafting the war revenue meas lures. Leaders in the House and Senate today conferred with Secre- tary McAdoo regarding proposed in- creases and new taxation and the House Appropriations Committee will meet to consider the situation
 The estimates calling for appro- priations carrying on the war were couched in general terms. The great total does not include possible loans to the allies.
 To Increase Income Taxes.
 Representative Rainey of Illinois, ranking majority member of the Ways and Means Committed said to- night that the income tax probably would be amended so as to furnish the government with greatly in- lcreased revenues during the war.
 My view is, 1" he said, that while the war lasts, no man should en- joy an income of more than S75,000 or Si00,000 a year and that the gov lernment should take all over this lamount. We could obtain also S200,- 100000 additional by raising taxes on whiskey and beer to level with what they were taxed in England before the war started.
 "The excess profits tax now in force must be graduated, making it heaviest on largest profits. The tariff is impossible as a source of revenue during the war
 Lowering of the income tax to S2,0O0 and possibly to Si,500 are among the proposals under consid- eration.
 A conservative view was at the present rate of taxation Si00,000,000 would be added to the governments revenue by lowering the exemption to 5000 Some officials thought that the returns would be doubled, bringing the total to approximately S650,000,000
 Proposals under consideration te increase the tax on estates up to 10 per cent on very large estates would swell the governments revenues by Hundreds of millions.
 The Internal Revenue Bureau of the Treasury Department is collect ing revenue under peace taxes at the rate of S750000,000 annually This lsum could be doubled or increased by Si,000,000O00 by moderate in- creases in the tax rates on whiskey, beer and tobacco, the lowering of the income tax exemption to S2,000, a graduated excess profits tax, in- creased taxes on estates and greatly increased taxation on large incomes.
 Thru this channel alone it was thought approximately Si,000,000,000 annually might be raised for carry ino on the war.