The sun. [volume] (New York [N.Y.]) 1916-1920, 1917-07-25
$5,OOO,OOO,OOO
ASKED TO TRAIN
MILLION IN ARMY
McAdoo Urges Huge Rev.
enue to Double Expedi-
tion to France.
NEW TAXES TO GIVE PART
50, 900, 100000 in Addition
Needed for Allies, Senate
Committee Hears.
NEW TAXES TO GIVE PART

WASHINGTON, July 24.--once more an
obstacle has been thrust into the path
way of the $3.50, 100000 war revenue
bill. and this time at the request OF the
Secretary OF the Treasury, who to-day
appeared before the Senate Committee
on Finance and informed 1t that the
exigencies Of the hour demanded mate
rial increases In the revenue.
Mr.. McAdoo informed the COMMITTEES
that estimates were TO be submitted to
Congress for . new war budget calling
for not less than $4,000. .0oO.0 900. as ex-
clusively predicted in THE SUN several
days ago.
One of the reasons why the war
budget is to be increased in such a
stupendous sum is that the plans Of the
Army General Staff have been revised
so that II is the present anticipation
that within a year a million American
fighting men ri.l be landed in France
instead of haif a million, as earlier pre-
dicted. Mr.. McAdoo told the committee
1t is the Administrations wish that at
least part OF the $4,000, ,o00. 900 budget
should be met by taxation. This calls
for the addition OF numerous new items
TO the war revenue bill.
Following his general statement to the
committee the Secretary advanced the
suggestion that an additional billion
dollars OF revenue be provided for In the
bill. The committee took no action,
however. beyond adopting a resolution
requesting the Secretary to prepare an
estimate of all the needs of the depart
ments of the Government.
Two Billions for Allies.
The new estimate. including $500 ,oo0,-
NAr H. -nl
and S100,000.o00 for the Navy Depart
ment. is to be submitted to the COM
mttee late this week. Then there will
begin another revision of the war reye-
nue. measure. probably resulting In an
increase OF the bills gross tax levy by
from $3.50. 100000 to $500, ,OOO. 900.
Further credits may also be authorized
in the form OF bonds or Indebtedness
certificates.
Besides the additional sums needed
for the american war programme. Sec
retary McAdoo told the Senate commit
tee, that the .ss,ooo.uoo. 900 authorized
for loan to the Allies probably would
last only until October, and that about
$4,000, 100000 for their further assist
ance would be needed. Provision for
this, however. Is not planned In connec-
tion with the pending revenue legisla-
tion. u probably will be considered at
the next session.
By the end OF the week the committee
hopes to arrive at decision as to what
part OF q new budget should be derived
from immediate taxation. There is an
element In the committee willing to
follow suggestions of McAdoo literally
On the other hand a majority of the
committee are expected To hold out for
more reasonable increase in the rev.
enue rates and bond issue of larger
proportions.
sources of Revenue.
Chairman Simmons of the Finance
Committee was all ready to submit the
majority report OF the committee and
TO urge prompt passage OF the bill as
IL stood this morning. 1t was also
planned to begin consideration of the
DILL in the Senate tomorrow. The Ut
committee by this disruption of its pro-
grammc.
Chairman Simmons said tonight there
are numerous sources of taxation un-
touched by the bill as at present framed
He showed that practically 10 per cent
of the yield expected from the measure
as now drafted would come from the
excess profits tax and Increases in the
income tax rates
Senator Smoot. leading revenue ex-
pert, In addressing the Senate on the
aivers and harbors bill just before Sec
retary McAdoo's visit pointed out some
reasons why money should not at this
juncture be wasted In pork barrel''
legislation. He showed that Americas e
war bill already has been 39, ,226. .OOO, 900
and that the proposed new budget OF $5,-
0O0, 900, 900 would bring the expenditures
close to $4,000, 900, 900 for the first year
Of the war.
"PeOple want Moneys Worth"
In view of these extraordinary fiE-
ures no Senator can stand here and
raise objectoon to the closest scrutiny
of the methods employed In expending
Americas treasure said Smoot. How
easily these enormous sums are appro-
rriatedi We never take into considera-
tion how the vast sums are to be raised.
Somebody's got TO pay. ] believe the
people OF this country are willing to
pay any amount necessary to win the
war II they are assured they are get
ting their moneys worth for every
dollar spent"
Financial experts In the Senate ex-
press the opinion that safety In the de-
of Americas financial pro-
gramme for the war will demand that
approximately 20 per cent. OF the an
nual expenditures be derived from taxa
tlon. On this basis increase In the
volume OF revenue 10 be derived from
immediate legislation must be nearly
q z