New Britain herald., 1917-07-28
YEARS WAR BILL TO
Be $lO,735,8O7,OOO
Senate Finance Committee Sur
prised by MCAdoo'S Estimate

VI o.
$4,000, according to an estimate sub
| mitted by Secretary McAdoo late yes
terday to the senate finance commit
tee. Appropriations already made
pending, Or proposed aggregate Sill
651, 1914, 900, the secretary figured
leaving a margin of nearly $1,000
100000 to take care Of any unexpect-
ed emergency.
These figures, showing the huge
scale of war expenditures, surprised
the finance committee, which had
not expected any such demand upon
the nations financial resources for
the year. The estimates were SUBJ
nitted to the committee in response
to its request to Secretary McAdoo
to let it know precisely what was
needed.
The committee had been asked by
the secretary of the treasury to pro-
vide additional revenues of $780,
100000 beyond the s1,67O,OOO, 900
carried in the war revenue bill The
estimate given convinced the mem
bers that the $1,000, 100000 must be
provided.
OF the s11.651, 194,O00 given by Mr..
McAdoo as the aggregate or appro-
plated, $S,673, 100000 was mentioned
by him as having been set aside for
uses of the army and $1,324,OOO,O 900
for use of the navy. For the conduct
of various other governmental de-
propriated.
The estimated receipts of the gov
eminent from ordinary sources and
la Of
Mr.. McAdoo said, reached a total of
leaving $1,000, 100000 to be raised
otherwise this year. Of this
$7,o00,0 100000 the war rev.
ed, makes up $1,670,0OO,0OO and
this, according to the tentative deci-
sion reached, will be increased to 81
o0o,000,0oo. That will leave the S.
o00, 900 wanted by Mr. McAdoo to
be taken care Of and to do this the
committee is expected to arrange for
long-ter bonds.
Increase Profits Tax.
To get the s330,oO0,OOo needed to
raise the war revenue bill levy to
100000 the finance committee,
it was said will apply a higher tax
upon excess corporation war profits,
and, in addition, probably will raise
the normal corporation income tax by
1 per cent
The finance committee talked with
experts from the war and navy de-
partments before Mr.. McAdoo's esti-
mate came in, and received assur-
ances that the appropriations al
ready made or contemplated were es-
sential in carrying out the war policy
of the administration. The commit
tee heard Brig. Gen. Crozier, chief
of ordnance; Brig. Gen. Black, chief
of engineers; Quartermaster Gen.
Sharpe; Brig. Gen. Squier, the chief
signal officer, and Major Gen. Gorgas
surgeon general. All agreed that it
would be unwise to attempt to cur
tail any of the appropriations asked
by the war and navy departments.
1t was pointed out last night that
the estimate of Secretary McAdoo did
not include fresh loan to the allies
contemplated by the administration.
One loan of $4,000, 100000 is expect
ed to be issued soon, while there is
talk that another of s2,0OO,OOO,OOO
will follow within a few months. The
$5,000,000,00O Of prospective loans
would raise the aggregate Of appro-
mately to- the 100000 esti-
mated by Senator smoot, one Of the
finance committee, in a speech in the
senate this week.
The 100000 asked for by Mr..
McAdoo, it was said, would prob
ably be made up of twenty-year
bonds, bearing 4 per cent interest
Will Not Oppose Consumer.
Senator Penrose of the finance COM
mittee said the committee was OPP
posed to putting any additional tax
upon the consumer, whose war bur-
den would be heavy enough with the
taxes carried in the war revenue bill,
besides the increased cost of neces-
sites in the market. THE majority
of the committee favors raising by
bonds almost all of the $5,000,OO0,-
900 asked by Mr.. McAdoo," said the |
senator. 1.-The revenue bill cannot
with reason. be increased beyond
100000 or 100000, 600 at the
outside. If we attempt to put too |
much strain upon it. we will only !
injure the industrial activities of the |
The view of the committee |
is that the basic structure of the bill, |
written after two months of deliber !
ation shall remain unchanged. and |
that the increase of SS3O.OOO,OOO to !
make up the $4,000, 100000 aggregate |
for the war revenue bill be met by |
TAX and yet it has to meet the war |
demands. The finance committee will |
have to scrutinize the estimates sub |
mitted to it by the secretary of the !
treasury. If they are found, after I
lue deliberation, to be essential, of |
course the money will be forthcom- |
ng.
I'm any event, the committee is
of one thing, and that is
hat it is unwise to- increase the tax