The midland journal., 1917-08-03
NEW WAR CREDIT
OF S5,000,OOQ,0O0
Provisions Must Be Made for
Second Army of 100000.
McADOO TELLS THE SENATE
$500, 100000 More For Shps-Navy
Department Also Calls For Addi-
tionaI $1oo,ooo,ooo - War
Taxes To Be Increased.

WaShlngton.-PlanS worked out in
Congress for raising war revenue were
overturned by announcement of forth
coming additional estimates for war
expenditures aggregating more than
$4,000, 100000, principally in anticipa-
ton of assembling second army of
100000 men under the selective draft.
Secretary McAdoo, at special meet
ing of the Senate Finance Committee,
revealed that the War Department
alone is preparing estimates to cover
additional expenditures of nearly $5,-
000,000,000 and asked the committee to
hold up the ,67O,000,O00 War Tax
bill until the detailed estimates of all
departments are submitted.
The committee agreed to the request
and pigeonholed a report on the meas
ure which it had planned to submit
during the day.
Revenue Bill Must Be Revised.
The new estimates, including $780,
100000 additional for the Shipping
Board and $1O0,00O,000 for the Navy
Department. are to be submitted to the
committee late this week. Then there
will begin another revision of the war
revenue measure, probably resulting in
an increase of the bills gross tax levy
by from $3.50, 900 to $1,50O, 600, 900.
Further credits also may be authorized
in the form of bonds or Indebtedness
certificates.
Besides the additional sums needed
for the American war program, Secre-
tary McAdoo told the Senate commit
tee that the $3,000,000,000 authorized
for loans to the Allies probably would
last only until October and that about
$4,000, 100000 for their further assist
ance would be needed. Provision for
this, however, is not planned in con-
nection with the pending revenue legis
lation. 1t probably will be considered
at the next session.
The Secretary made no recommends
ton as to what part of the total should
be raised by taxes and what part by
bond issues or other credits. 1t was
reported, however, that the Treasury
Department would favor raising ST.
000,000,000 more than had been plan
ned in taxes, making the tax bill total
$3.50, 100000
AS to the tax sources to be tapped
to meet the new estimates, the COM
mittee for the present is entirely at
sea.
Mr.. McAdoo's announcement came
entirely without warning and more
than one committeeman expressed
himself as completely staggered by the
size of the Forthcoming estimate. The
first disposition was to turn to new
taxes on war excess profits and in
comes.
There are many great sources of
revenue open for great and rich peo-
pie like ours" said Chairman Sim
mons, but he would not predict what
the committee would do. A meeting
will be held Immediately after the new
estimates are submitted.
At today's meeting a resolution was
adopted calling for submission of new
estimates by all departments, so that
the whole war expenditure program
may be considered in connection with
the pending war tax legislation.
The $5,000,00000O army increases,
Secretary McAdoo informed the COM
mittee, are largely to provide for the
second draft army of 100000 men to
be called while the first 100000 are
under training. The $4,000, 200, 900
would provide for expenditures until
July 1, 1918.
During the debate on the Rivers and
Harbors bill Senator Smoot presented
statistics to show that appropriations
of the war session already aggregate
1926, 100000. so that the new esti-
mates would raise the total for the
first year of the war well above $14.-
600, 100000.