Evening star. [volume] (Washington, D.C.) 1854-1972, 1917-04-07
TWO BILLIONS: MAY
BELENT TO ALLIES.
Secretary McAdoo Discusses
Plans With House and Sen
ate Committee Members.
MONEY TO BE SPENT IN U. S.

Plans for financing the war were dis
cussed today by Secretary McAdoo
with members of the House ways and
means committee. and with Chairman
Simmons of the Senate finance COM
mittee.
The $3,400 600, 900 already asked for
the army and nayyisssxpected to suf-
fee. in addition to the regular appro-
priation bills, until June 80. 1918.
The step considered most important
now is the extension of an immense
at least 81. .ooo, ,ooo, ,ooo-as an indication
that the nation Is going-into the war
to the limit with the resources most
readily available.
Bonds under such a plan would be is
sued to take over bonds of the allies,
making them in effect security for
those obligations. Most of the. money
derived from such bonds, it is expected,
would be spent in the United States
Details of that sort of bond issue
have not been worked out, but it is ex-
pected legislation to provide for it will
be presented to Congress soon.
Division Of the Burden.
On the question of taxation Congress
leaders feel that the burden Of the war
should be about equally divided between
taxation and bond issues. 1t was said to-
day there would be no attempt to drain
the wealth of the country by enormous
increases in the income and corporation
taxes and higher tax on excess profits.
but it was declared wealth will be forced
to share its portion of the burden.
.'The young men of the country" said
Chairman Simmons ARE going to risk
their lives in this war, and the wealthy
who may not be able to risk theirs should
contribute from their wealth.
Details Of increases in the income
and other taxes, whether there should
be a revival of stamp taxes of other
war days and the proportion to be
maintained between taxation and bond
issues, have not been determined.
To Take Up Work at Once.
Chairman Simmons said he expected
to go to work at once on consideration
of revenue suggestions, but that his
committee would not meet to frame a
bill until one had been reported to the
House.
Later Secretary McAdoo met with
members of the House ways and means
committee to take up the matter Of
necessary legislation for raising the
money required.
plans of the House leaders today
were for a brief session Monday to con-
cur in the Senate amendment to the
general deficiency bill providing a spe-
cial war fund Of S100.000,000 for dis
posal by the President, and then an
other adjournment until next Thurs
day to permit the committees to frame
the war legislation.
Representative Rainey of Illinois.
ranking democrat of the ways and
means committee, in the absence OF
ma jority leader and meanwhile confer
with Secretary McAdoo on finance
measures.
Urges Careful Consideration.
Senator Weeks of Massachusetts,. re-
publican member Of the banking COM
mittee, declared in statement today
that the best obtainable advice should
be secured by the government before
it undertakes to finance the war.
"If these operations are wisely under
taken there will. in my opinion. be no
support necessary on a reasonable
II think the President should call for
the best obtainable advice before any
financial operations are undertaken
II this is neglected and an attempt is
in a haphazard way, 1 am confident
that the market will be very seriously
injured and the government will be the
sufferer This is not n time for re-
warding any one whose services may be
required by the government; neither is
if a. time for disr regarding skilled serv-
ices because of prejudice or for any
other purpose"
Cabinet Discuss War Finances.
The cabinet and the council Of national
defense both had under consideration and
discussion yesterday afternoon methods Of
a.aacin1 thu urar with Germany and the