The sun., 1917-04-04
S.WARCREDlT'
Democratic House Leaders
Estimate Need From
Now Until Dec. 1.
INCLUDES AID FOR ALLIES
cabinet Discusses Big Popular
Loan and Increased In
come Taxes.
INCLUDES AID FOR ALLIES

| WAsHiNGroN, April 3.-Democratic
leaders. particularly members Of the
Ways and Means Committee OF the
House, are looking for $4,000, ,ooO, 900
additional revenue war credit for this
Government and the Entente Allies be-
tween now and December I.
This figure. IL is believed. represents
the minimum of what the country may
expect to commit itself to by entering
the war against Germany on the scale
urged last night by President Wilson
This amount may not be voted at once,
; but Congressional ieacers believe that
before the extra session adjourns, pos
sibly in month or six weeks, this
amount of credit will have been ad-
vanced the United States Government
and the Entente Allies.
The problem Of financing the war was
discussed at to-day's Cabinet meeting
and It is understood plans were con-
sidered for raising large loan by popu-
lar subscription. A bill to authorize such
a loan may be framed by the Admin
istration and submitted to Congress
soon.
Last night. following the reading OF
the Presidents war address. Secretary
McAdoo asked several members of the
Ways and Means Committee to obtain
as nearly as possible a consensus Of
views among the leaders as to the best
means Of raising credits which war with
Germany may make necessary. The Sec
retary Of the Treasury suggested that
these views be obtained and considered
when the leaders consult with him over
the question.
Here 10 Probable Progra N me.
So far as can be ascertained from
talks with Democratic members OF the
Ways and Means Committee. and in
the light of President Wilson's sugges-
tions. the programme will include:
/. Provision for a bond issue of s3,-
O0O.000.00O. part as credit to the
Entente Allies and the remainder for
purposes of defensive preparations
and the support OF American naval
and military forces.
2. Prevention of imitation" warned
against by the President through Of
fering short term bonds in serials. part
OF the issue maturing at stated inter
rals after certain length Of time.
probably by three years.
3. Provision for liquidation Of the
bonds at as early date as possible
through adequate sinking fund pro-
visions to be cared for by greatly in
creased taxation-increased income
and corporation taxes and increases in
the excess profits tax.
I. Gradual increase in import duties
following recommendations Of the
newly named tariff board.
o. Provision for the protection of the
purchasing power of credits both of
this Government and the Entente AL
lies through supervision of profits and
virtual price fixing on the basis OF cost
plus percentage OF profit.
McAdoo to Have Free Hand.
Although members OF the committee
have some pretty we'll fixed ideas as to
how the money should he raised there
Is no indication that Secretary McAdoo
will have any more trouble debating the
course than he has had In the past In
this case. however, he will not have the
insistence of Majority Leader Kitchin
that the Northern munition makers be
made to bear the burden. an insistence
which resulted last winter in an excess
profits tax aimed almost exclusively
against business concerns north of Mason
and Dixon's line.
Leaders in Congress and members of
the Administration are of one mind on
two points affecting the industries en-
gagged In the manufacture of war sup
plies:
l. Munition makers must not expect
TO reap inordinate profits from war
, contracts either with us or our allies.
2. Regulation Of these profits by the
Government, directly or indirectly.
must not be oppressive or discourage
an Industry 30 absolutely essential to
SncrAGgfnI pft th.,
The Government does not wish to con-
template at this time the taking over
OF private munition plants or the sale
| direct to the Allies by this Govern
J ment OF supplies and munitions. This.
however, will be the course pursued
unless a workable basis can be reached.
Taxation Of $1,000 Incomes.
( Changes In the income and excess
profits taxes could bring from those
, sources at least $1,000. .OoO, 900 a year
without calling for oppressive taxation
in the opinion Of members OF the Ways
| and Means Committee. 1t Is proposed
10 maintain the minimum from which
, income charges are based less n $500
abatement, so that the practical result
would be the starting OF the scale at. a
minimum income Of $500, and main
tanning that same scale until after the
$4,000 mark Is passed. The present min
imum is $4,000 without any abatement.
What the base tax will be has no,
been decided and will not be fixed until
some idea Of the amount needed for cur
rent expenses and inland sinking fund
on bonded indebtedness can be obtained
from the size Of the war budget. The
present base tax Is 9 per cent, with a
graduating scale Of surfaces.
In the event Of big war It was as
serted by member of the Ways and
Means Committee to-day, the industries
| OF the country could well afford to pay
double the excess profits tax now levied
while the 5000 exemption which now
| obtains could be removed with view to
distributing the tax more equitably. 1t
Is also suggested that the exemptions IN
favor Of private Arms and individuals
be rsPovsd