Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1917-04-06
Federal Reserve Banks CAM
Take Up Two Billion DOL
lars in Bonds at Once, Is
Said at Washington,
INCOME TAX LAW TO
Be GREATLY EXTENDED
No Provision in Estimates for
Lending Financial Assist
ance to Allies, as Suggested
by President,

wv WoNthu ICuHNAI hFkGiAA LNA5bD WiRE1
Washington, April 5.-Congress
was asked today to provide immedi-
ately $S,5O2,517OOO to finance the
war for one year, approximately as
follows:
For the war department, $685.
537933.
For increasing the authorized
strength of the navy to 10000 men
and the marine corps to 10000 men,
$175,sS5, ,762.
For other necessary expenditures
for the naval establishment, at the
direction and discretion of the presi-
dent, $292,53S,790, and for the coast
guard, so that it may bring to a high
state of efficiency its telephone sys-
tenn Of coastal communication $780,
G1o.
A bond issue, increased taxation,
including higher taxes on estates,
large incomes, whisky, beer, tobacco
and new methods of taxation prob
ably will be resorted to to raise the
huge amount.
Can Take Big Bond Issue.
Unofficial estimates to the federal
reserve board are that the banks of
the federal reserve system are in a,
position to absorb up to $4,000, 600, 900
of war bonds at once at rate of in
terest not exceeding 3 u per cent Sec
retary McAdoo authorized the state
ment that he thought the government
would have no difficulty in raising
the necessary finances, but declined
will be adopted.
Treasury department experts are
assembling a mass of data for con-
sideration of the president and con-
gressional committees. Leaders in the
house and in the senate conferred
with Secretary McAdoo during the day
with reference to proposed increases
and new taxation and a call was is
sued for a meeting tomorrow of the
house appropriation committee.
Not All Expenses Included.
The estimates calling for the ap-
preparation 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 as
outlined in the presidents address to
congress, and demands upon the
country's finances will be increased
by whatever amount it is decided to
place at the disposal of the entente
governments.
Secretary McAdoo. into whose
hands will be placed the task of sug-
gesting methods for raising large
sums by increased taxation, so that
the war may be paid for as far as pos
sible during its lifetime. said tonight
he had received many suggestions
from bankers and others. John
Shelton Williams, comptroller of the
currency, is in New York to consult
with bankers there, it is understood,
regarding the proposed bond issue.
Burden on McAdoO.
Mr.. McAdoo expects to have fire.
uuent conferences with leaders of the
house and senate. Chairman Fitz-
gerald of the appropriations commit
tee said tonight that no plan of action
would be formulated until the com
mittee could consider the estimates
and reasons for making the appro-
priations.
Chairman Simmons Of the senate
finance committee intimated that
short term notes might be issued to a
limited extent
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 presentation to
the house, declared tonight that the
income tax probably would be extend
ed so as to furnish the government
with greatly increased revenues dur
ing the war.