Norwich bulletin., 1917-04-06
$2,ooo 100000 of War Bonds at Once


 will be reported to raise the huge amount.
 $2,ooo ,ooo, 900 of War Bonds at Once.
 Unofficial estimates to the federal re- serve board are to the effect that the banks of the federal reserve system are in a position to absorb up to s2,- 000. 900 900 of war bonds at once at a rate of interest not exceeding 3 1-2 per cent. Secretary McAdoo author ized the statement that he though the government would have no difficulty in raising the necessary finances.
 Leaders in the house and senate con- ferred with Secretary McAdoo during the day with eference to increased and new taxation and a call was is sued for mee ing tomorrow of the house appropri; ions committee to consider the ent re situation.
 The great totas does not include pos sfble loans to the allies-part of the administration's programme as out lined in the presidents address to con- gress-and dema nds upon the coun- try's finances will he increased by whatever amount it is decided to place at the disposal of the entente gov ernments.
 Comptroller c,nsuItirn Bankers. John Skelton Fiilianis. comntroIIer of the currency. Ae itf New York to consult. it is understood. with bank CTS regarding the proposed bond is- sue.
 Secretary McAdoo expects to have frequent conferences during the next few days with leaders of the house and senate during which an attempt will be made to place proposals in concrete shape so that they may be considered by congress.
 Chairman Simons of the senate n- nance committee, intimated that short term notes might be issued to a Him. fted extent to make immediately avail a a nf 10 daS
 Representative Rainey of Illinois, ranking majority member of the ways and means committee, which will have the final say in drafting the war rev house, declared tonight that the in come tax would probably be amended so as to furnish the government with greatly increased revenues during the war.
 Large Incomes and Excess Profits.
 'Nfy view is." he said. "that while the war lasts no man should enjoy an income of more than s75. 900 or S100,000 a year, and that the govern ment should take all over this amount. We could obtain also s2o0. .000. 900 ad- ditional annual by raising taxes on whiskey and beer to a level with what they were taxed in England before the war.
 ''The excess profits tax. now in force, must be graduated. making it heaviest
 
 possible as a source of revenue during the war;
 May Tax $1,5oo Incomes.
 Lowering of the income tax exemp- tion to $2.000 and possibly to s1.500, are among the proposals under conr sideration. What such action would mean. one official said today. in act ual revenue. could not be forecasted even approximately because of lack of information upon what to base an es- timate. conservative view was that at the present rate of taxation, $100.- ooo. 900 would be added to the govern ment's revenue by lowering the ex- emDtfon to S2,0
 Proposals under consideration to in crease the federal tax on estates up to would swell the governments revenues if adopted. by hundreds of millions
 Internal Revenue. treasury department is collecting rev. enue. under peace taxes, at the rate of s750.0o0.0 900 annually. This sum could be doubled or increased by s1- the tax rates on whiskey. beer and to- bacco, the lowering of the income tax exemption to $2.000 a graduated ex- cess profits tax. increased taxes on es- tates and greatly increased taxation on large incomes.
 SouhtryS FfnSnCeS strong.
 The country's finances were never before so strongly intrenched as at present, Mr. McAdoo said. Indications arc that the interest rate on whatever bonds are issued will not be in excess of 1-2 per cent. and may be as low as per cent. There will be little diff ficulty, in the opinion ofs officials, in obtaining all the money needed by popular subscription. The banks and business interests were characterized today by one official as simply wait ing to see how much is needed and what plans are adopted for raising it." To thi sattitude was attributed, in large measure. the recent dimunition of activity in the country's industries
 Reserve Banks Could Take Bonds.
 A large proportion of the bond is- sue, 1t was indicated. might be handled through the federal reserve board which would act as the distributing or fiscal agent for the government in placing the bonds. The 7.50o banks of the federal reserve system with their $16, 900 in resources would. 1t was thought be abundantly able if neces- %-,lr <~f