Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-04-09
NEARLY ONE-HALF
|. Of THIS AMOUNT
AS LOAN TO ALLIES
Congress Must Raise ST.
750,O00.000 by New Tax
alton Measures.
COUNTING ON BOND ISSUE
FOR SUM OF $5,OOO.OOO.OOO
Entire Issue, Term of Which Is
Not Yet Fixed, to Bear 31l
Per Cent Interest.
PROMPT ACTION is EXPECTED
Indications Arc That Program viii
Meet With Overwhelming Sup
port i'm Both Houses.
PROMPT ACTION is EXPECTED
tBy Associated Press.


WASHINGTON. April S.-presiden,
! Wilson'S policy outlined i'm his adj
dress to Congress. of paving Americas
war bill. so far possible. While the
war is being waged. leaving :, mini.
mum deb: to posterty, was reflected
Tonight ir virtual decision by lead
ers' IN the House and Senate 10 raise
90 per cent OF the first years cxpcndi-
! lures by taxation.
Under tins program. Congress will
be called upon to raise war revenue to Y
the extent of Sl,750. 900, 900 through
new and increased measures of t,x,
ton during tho fiscal year ending June.
80. 1915. This is exclusive OF the
So.ooo.00o.o0o bond issue authorization
for which Will be sought OF Congress
this week. The total demand mar, >
the financial resources OF the country
during the first year, OF the war under
this program would be $3.50 coo, 900
or the $4,000. 000. 900 to be raised by
bond issue. $4,000. 900, 600, II was den.
nitely stated tonight, would bc loancu
to the entente allies. The entire issuc
House and Senate leaders have agreed.
VIII hear interest at the rate of ~.
per cent. II is proposed to make the
loan to the allies at this interest rate.
winch is lower by far than the rate
'heE nave been compelled to pay on
their previous issues.
TO HOLD $1,000. 100000 ron
ARMY AND NAVY WORK
Nter the entente governments have
becn granted the loan. the plan ia 10
mold the remaining $4,000, 600, ,OoO of tho
s''ooo.ooo.OO0 to be applied on the cost
OF inc military and naval establish
'nchts ana other war expenses of the
ohi'cd states. Indications are that,
with the new war revenue measure,
in effect. tho fun amount. so.ooo.ooo.
600. would not be entirely exhausted at
the end of the first year
In requesting authorization for ,
s'.OoN. 100000 bond issue. administr,
tion leaders have in mind the necessity
Oh allowing for slight margin or
safety. so that the work of tho War
ana Navy Departments would not bc
handicapped by a lack of funds dr.
10 the possible failure of proposed tax
measures to raise tho entire sum or
ou pcr cent desired
he term OF the bond issue Ia vet to
DC hNcd. and there Is a possibility that
authorization for the issue will bc
granted by two acts OF Congress. rather
'han one The proposal that Congress-
an.norl"e immediately the issue OF
F''oV'''"",oeo In bonds TO finance loan
To the allies and afterwards take I'm
the request for $4,000, 600. 900 for tho
army and navy is considered.
Indications are strong. however tb,,
Congress will ho asked to author;yc
the So'ooo.oc$.o00 i'm one lump sun,
Legislation to this effect will be con.
Sidcrcd ny the Ways and Means Corn
mittce within the next day or So and
pronaniy VIII be reported to Congress
tor action before the end Of the week
kfrCHIN IN CHARGE UNLESS
HE ASKS TO HE RELIEVED
To Chairman I<itchin, who was
called to North Carolina and. there
rore' was not consulted with reference
TO details OF the proposed legislation
VIII tall the honor Of carrying through
III the House the Administrations i'm
mediate financial problem Recalling
Mr.. kitchins opposition TO the war
resolution. members of the COMMITTEES
are prepared. however. to relieve him
OF this duty, should be personally on
pose the plan. In that event il prob
ably would dcvolve upon Representa-
WV htiHes, ranking majority member
OF the committee. or Representative
HUI. OF Tennessee, to carry through
the program.
In the Senate the Finance COMMITTEES
is preparing to study the measure
closely as reported by the Ways and
Means Committee in the House. with
view to reporting 1t promptly to the
Senate.
indications arc that the adn!nistra.
tion's financial program will meet with
overwhelming support in both houses
Considerably more time IL is
thought, will he consumed In the pas.
sage OF the war revenue measure to
follow. Sentiment in Congress. appaf.
entity crystailized in support of the
program OF advancing an enormous
loan to the allies. varies greatly as
to the methods to be pursued in rails;
ing revenue through taxation Nriu
The bond issue diyposed OF. the need
for war revenue legislation also would