The Lancaster news. [volume] (Lancaster, S.C.) 1905-current, 1917-04-06
HUGE SUM IS ASKED
FOR PURPOSE OF WAR
FOUR BILLION DOLLARS TO
BE NEEDED.
Much Money Will Be Required
For the Army and Navy
During Struggle.

hpat uSStC.
Washington, April 5.-Congress
was asked today to provide imme-
diately s3,502, 1000 to finance the
war for one year, approximately as
follows:
For the war department, $685.
537,933; for increasing the authoriz-
ed strength OF the navy to 10000
men and the marine corps to 10000,
1852; for other necessary
expenditures for the naval establish
ment at the direction and discretion
of the president, $292,53S,79O, and
for the coast guard so that il NAV
perfect and bring to a high state OF
efficiency its telephone system of
coastal communication, 100000.
A bond issue, increased taxation.
including higher taxes on estates,
large incomes, whiskey, beer, tobac-
co and new methods of taxation
probably will be resorted to to raise
the huge amount.
Unofficial estimates to the federal
Preserve board are to the effect that
the banks of the federal reserve sys-
TEN are in a position to absorb up to
$4,000, 100000 of war bonds at once
lat rate Of interest not exceeding
; 1-2 per cent. Secretary McAdoo
authorized the statement that he
thought the government would have
no difficulty in raising the necessary
finances
Only Part of Program
The estimates calling for the ap-
of money for CARRYING on
the war were couched in general
terms. The great total does not in
clude possible loans to the allies,
part Of the administration program
las outlined in the presidents address
to congress, and demands upon the
'country's finances will be increased
by Whatever amount ii is decided to
place at the disposal of the entente
governments.
Secretary McAdoo said tonight he
had received many suggestions from
bankers and others and was investi-
eating every phrase of the situation
John SHELTON Williams, comptroller
of the currency, is in New York to
consult. it is understood, with bank
ers there regarding the proposed
bond issue.
Chairman. Simmons of the senate
finance committee intimated that
short term notes might be issued to
Ia limited extent to make Immediate
ly available portion Of the sum
desired. He said he was waiting on
Secretary McAdoo for suggestions
and thought a plan of action would
be framed shortly.
Representative Rainey of Illinois.
ranking majority member of the
ways and means committee, which
will have the final say in drafting the
war revenue bill before it's presenta.
tion to the house, declared tonight
that the income tax probably would
be amended so as to furnish the gov
o'HhieHl With greatly increased rev.
enues during the war.
For Income Taxes.
'My view is" he said. that while
the war lasts no man should enjoy
an income or more than $4,000 or
100000 year and that the govern
ment should take all over this
amount. We could obtain also 5000
100000 additional annually by rails
ing taxes on whiskey and beer to a
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 source of revenue
during the war"
Lowering OF the income tax ex-
emption to $4,000 and possibly to
j 500 are among the proposals un-
der consideration. What such action
would mean. one oM,.ai said toIa,
In actual revenue could not be fore