Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1917-04-06
CONGRESS IS ASKED
FOR So. 4OO,OOO,OOD
FOR ARMY AND NAVY
Secretary McAdoo Asks for
War Appropriation to Be
Raised Through Bond Issue;
Taxation Plan Considered

WASHINGTON. April 5.-The gov
eminent today took its first active steps
in preparation for war.
Secretary of Treasury McAdoo asked
congress to appropriate about s3,40O.-
O0O.0OO for army and navy expenses.
This vast sum will be raised through
bond issues.
The rate of interest on the bonds is
20 be around 3 or 1-2 per cent.
The federal reserve poarG, as pre-
,iously planned, will have charge of
HE task of the contemplated bond issue
As well as of financing all war ex-
penses.
These acts became known today after
Senator Simmons. chairman of the
nnance committee of the upper house,
had conferred with Secretary of the
Treasury McAdoo on war revenue meas
ures.
Neither official would discuss the
plans, but 1T is known that concrete
proposals looking toward the near three
billion and a half bond issue would
shortly be suggested to congress in for
mally presented resolutions. Unof1cial
estimates presented to federal reserve
board officials indicate that two billions
can be raised at once and without diff
Guilty through a bond issue at the 3 1-2
per cent interest rate
BUDGET PLANS DISCUSSED.
Plans tor such a war budget were dis
cussed in greatest detail yesterday at
a meeting here of the federal reserve
board governors. The reserve governors
after discussion of the interest rate
49, Ia 81,
er than an initial issue at a low with sub
sequent issues at higher rates.
Treasury officials today discussed
possible means of raising revenue for
financing the war by direct taxation.
The government will raise approx
mately $750,000,000 this year through
the internal revenue bureau.
1t is estimated that proposed increased
inheritance taxes alone would increase
this source of revenue by $500,000,00l,
one suggestion being that the govern
ment increase the rate on taxation on
large estates up to 80 per cent
The income tax under present rates
will yield, it is estimated 335,000,0OO
this year.
The lowering of the exemption to-
$1,000 and increasing the rate on large
incomes would swell this sum to vast
figures. The estimated increase of in
heritance tax from this channel alone,
according to one official, would amount to
at least 500, 900 annually.
Increases in the tax rate on distilled
liquors, beer and tobacco also are under
consideration.
ARMY AND NAVY NEEDS.
Secretary Daniels asked that the
navy personnel be increased from ST.
900 to 1900 and the marine corps
personnel from 1900 to 10000.
The army. Mr.. McAdoo said. would
require $2.932,537,933 and the navy
S292, in addition to regular ex-
penses.
Beside the sums mentioned Daniels,
through McAdoo, asked an additional
S175,S55,76 to be available until June,
1918, to care for the additional person.
mel of the navy and the marine corps.
The estimate in blanket form called
for the money for military expenses
under the war department. necessity for
the national defense for each and every
purpose connected Herewith, to be ex-
pended by the secretary of war under
such regulations as the president may
prescribe, to be Immediately available
until expended"
The department of justice coincident-
ally asked a deficiency appropriation for
the bureau of investigation work to be
available during 1917-191s, of $500, 600.
The coast guard service sought $780,
900 wherewith to extend it's communi-
cation system for the national defense.
REGISTERING SINGLE MEN.
Means of registering all single men
between the ages of 90 and % under
the universal training bill and those
to be exempted were discussed today
by the executive council of the commit
tee on labor of the national deferse
council
Cooperation with state and muuIci-
pal governments toward accomplishing
this work will be sought under gene =.
al plans OF state aid in placing the
government on a war footing.
1t apparently is the intention of the
war department to aim for an army
with 100000 men as its first object,
the men to be raised in increments of
500 900 as rapidly as they can be Off
cered and trained. All single men in
the early twenties will be subjected to
the first draft under the plan.
Plans for raising an army were dis
cusSed today by Secretary Baker and
Chairman Chamberlain. of the senate
military committee. 1t was agreed TO
expedite the regular army appropriation
hill and the new administration army
bill Immediately after the house passes
the war resolution.
The new army bill has been submitted
10 Senator Chamberlain and Chairman
Dent. Of the house committee. and will
be introduced in both houses, probably
tomorrow.
The principal provisions for raising
the new army follow:
PROVISIONS OF BILL.
Immediate recruiting of the regular
army and national guard to their full
war strength. about 100000 men, and
calling of all national guard units into
federal service
Compulsory enlistment to recruit both
the regular army and national guard 20
(conttnued on Page 3, Col. a.