Evening journal., 1917-08-16
WAR FUNDS CALL
JARS CONGRESS-
Leaders Astounded TO Learn
$1,000, 100000 Needed
for Artillery
SAY M'ADOO GAVE
NO ADEQUATE NOTICE

WASHINGTON. Aug. 16.-lnforma-
ton from Secretary McAdoo thar TWO
and hall billions are needed 10 pro-
vide the American army with neecs-
sarv artillery came as complete sur-
Prise to congressional leaders. They
had supposed that every possible con-
tlnrencv IN the way Of equipment
had been considered and ample pro-
vision made for Il in the $1,000 ,o0O,-
QUO bond issue OF a few months ago
Secretary OF the Treasury McAdoo's
cemanc for a credit Of $9,000,0O0t0y,
to be voted all, or nearly all, before
the first OF the year, came as rude
shock to the leaders OF the House
and Senate. The proposition to raise
$4,000 600. 600 10 lend to the Allies rs
not entirely new since 1t has DeeE
stated that they are in need OF moro
money, and that It would tato this
much to meet their requirements up
to June 1, 1918 Nor did the statement
that additional funds are needed by
this government occasion so much
surprise. But for the Secretary OF the
Treasury 20 come 10 Congress with
demand for an immediate bond issue
OF nine billions. and with the infor-
nation that two and q half billions
OF that Is needed for artillery. rather
took the breath OF Congress leaders
It threw a cold blanket over peace
talk and served 10 reduce the hope
that had sprung mp over the Popes
proposal Senators who have been
discussing peace. either from anti
administration or from humanitarian
motives. had lost much of their OPP
timlsm and peace talk in the Senate
was postponed
Indications were that the new $1,000
600 bond Issue for the allied loan,
10 bc authorized at the present session
might bear 4 per cent interest. NO
official announcement has como from
Secretary NcAdoo. but It is known that
an advance of one-haf of ! per cent.
over the interest rate of the first allied
loan has been discussed In the Cabinet
and in Congress.
Secretary McAdOo's latest estimates
have upset all the calculations Of those
who have charge Of fiscal legislation in
Congress. and Il probably viii result ia
the addition Of half billion or more
IN revenues to the war revenue bill
that IS now pending in the Senate
These additions nay be put In while
the bill IA being considered IN the Sen.
ate, or they may be made in confer.
encc. But 1t Is conceded by the leaders
that tho revenue bill, which already
carries more than 50 900 600 600 In al.
rect taxes, will have 70 fbe padded ~
view Of these latest Developments.
Much complaint was heard yesterday
against Secretary McAdoo for bringing
L 4 u
~ and without advance notice Neithc
Chairman Kitchin, Of the Ways aul
Means Committee. nor Chairman Sim
mons, OF the Finance Committee hal
any advance information TINT the nd
ministration would come in at this lat,
hour with request for this big credit
These men. who are charged with "a
Eponsibihty for the fiscal Legislation
necessary 20 raise the money required
were left IN tho dark as 10 the Govern.
ment's needs, and this has aroused the
Ire Of Senators and Representatives n
had been planned TO raise one or tWt
billions more of emergency funds az thi,
session. and then adjourn, with the idei
Of taking up further financial needs al
Tho regular session of Congress. which
convenes in December. This plan hal
been knckcd into cooked hat. and tn.
prospects are that this extra session
may merge into the regular session thi
winter.
Complaints against Secretary Nc
Adoos course do not carry with then
opposition to the bond issue proposed
Republicans and Democrats on Tn
ways and means committee and tn
finance committee, as a rule, hav
shown no disposition to deny the ad
mlnistration any sum n considers nee
essary to defray the expenses OF IN
war. There is now no wish to tie III
national purse strings. But the lead
ers or Congress. OF all parties are de
termined that from this on they mus
be taken into the confidence OF tn
executive branch OF the government
and that they shall not be kept in tn
lark as to the governments require
ments until The last moment Senate
Simmons Will have a conference wit
Secretary McAd0o. at which time h
will emphasize 10 the Secretary "a
necessity for a closer understandin
between Congress and the executiv
as TO the financial needs OF the COY
eminent
Senator PenrOse ranking Repuhl
can member OF the finance COMMITTEES
characterized as "scandalous" IN
course OF the Secretary I'm suddenl
coming to Congress with this deman
Tor nine billions. Penrose has vote
Tor all the credits and appropriation
asked by the President and has state
that he stood ready to give him ever
facility for carrying on the war. bl
he is opposed 10 the game of "blin
mans bluff between Congress an
the executive department and will II
Eist upon a working arrangement thi
Will keep branches full advised
pDITICu EDEuru