River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1917-05-24
Washington Letter
(From James A. Frear, NJ. CO.
Washington, D. c., May 2

taxation. During the consideration Of
the bill last week, Mr.. Kitchin in
charge, said that the Secretary of the
Treasury, McAdoo has submitted
amended and larger requests calling
for S445, 100000 more than was first
estimated, or practically two and one
fourth billions Of dollars by direct tax
alton apart from the $2,000,0O0,0OO
bond issue Steps were Immediately
taken in the House to increase some of
the sources Of the revenue, particular
ly by larger taxes on incomes. 1t was
set forth in the debate that certain
tax proposals contained in the bill, if
enacted into law would destroy speci-
fc lines of business and "kill the goose
that lays the golden egg" Although
the bill is under discussion in the
House and will then go to the Sen
ate, number of amendments are sure
to be embodied before it becomes law.
Answering opposition voiced on the
floor against raising this enormous
amount Of money by tax levy, Fitzger-
aid of New York, chairman of the ap-
preparations committee, made the
statement that the Governments ex-
penditures up to June Goth, 1918, are
now estimated at $5,100,000,000 apart
and in addition to which $76O,OOO,OOO
will have to be added because of in
creased war estimates just received.
He further states that this did not in
clude the usual deficiency apprOpria-
tions which could not be determined
at this time. To meet such eXpendi-
lures the Government is unable under
existing law to raise revenues of ST.
49,750,0OO during the next year and
bond authorizations are permitted OF
S2.195, 256,292. This amount does not
cover $5,OOO,OOOOO0 which is being
raised for loans to European allies to
be secured by European bonds. These
figures are too enormous for the aver
age man or legislator to comprehend,
but the man who earns $500, or 5000
year and is confronted with GER
tainty of several times that amount in
unexpected expenditures, may be able
to understand the national financial
situation. Although the Governments
promissory note for $4,000 ,OOO,OOO IN
the form of bonds is now being floated,
it will be necessary to raise the bal
ance of the obligation by some other
means. It is problem in mathematics
and economics wherein the Govern
ment like the individual must meet it's
obligations either by cash or bonds.
That is the reason why unprecedented
taxes are necessary at this time, and
according to statements on the floor,
may grow in proportion as the war
continues.
Another important statement made
by Chairman Fitzgerald, who is prob
ably the first authority in the House,
relates to the necessity of raising this
proportion of our financial obligations
by direct taxes in order to maintain
national credit for floating bonds. The
Government cannot go beyond a GER
tain limit in mortgaging the future
without destroying it's present credit.
That was discovered by our experience
during the Civil War and is a recog-
nized principle of national finances. Ii
newspapers and individuals that be-
lieve legislation can be passed over
night, were confronted with the nee
essities of the Government on the one
hand, and protests from threatening
disaster voiced by legislation on the
her, they would understand yhy leg
islation has to be carefully considered
in order to avoid gross injustice and
business ruin. That is what Congress
is trying to do at the present time.
The President by proclamation has
fixed June 9Th, between the hours OF
seven a. m. and nine p. m. for regis
tration under the CONSUMPTION act as
finally passed. Every person between
and including 81 and so years of age
subject to military service, is required
to register on that day at the registra-
ton precinct wherein he has his per-
manent home. The law is accom-
panied with severe penalties for fail
ure to register and this reminder Is
sent in order that those affected viii
understand the Importance of regis
tering under the new law.
1t is also announced that the Pres
ident has overruled the decision of the
General Staff which opposed to send
ing regular army troops to Europe
General Perishing has been ordered
"to proceed to France" at as early 9
day as possible, with one division OF
regular troops. The allies are report
ed to have three million men or more
under arms on the Western battle line
so that the American division of ap-
proximately $4,000 men will amount tc
less than one per cent of the allied
force. However, the purpose is one
largely of sentiment urged by foreign
officials and is intended to show this
Governments practical cooperation II
the war. The CONSUMPTION Bill provid-
ed for four divisions of volunteers tc
be authorized by the President. 1t was
understood this would enable Col
onel Roosevelt to take an army of 1OO,-
000 volunteers tO France at an early