Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-08-28
us. WILL REQUIRE
S21,OOO,0OO,00O
NEXT FISCAL. YEAR
Congress Expected to Give
Necessary Authorization
at This Session.
M'ADOO WILL BE ASKED
TO EXPLAIN SITUATION
$19,ooo,ooo,oOO Will Meet Ex-
penses and $2,ooO,oo0,0o0 Will
Be Held for Emergency.
KITCHIN DISCUSSES ESTIMATE
Ways and Means Committee Begins
Consideration of Bond and
Certificate Measure.
M'ADOO WILL BE ASKED
TO EXPLAIN SITUATION
KITcHIN DISCUSSES ESTIMATE
Ways and Means Committee Begins
Consideration Of Bond and
Certificate Measure.

ST.
WASHINGTON. August 1.-TWO bil-
Hon dollars may be added to the total
OF bonds to be authorized at the pres
cnt session Of Congress. making to.
tai approximately of s21. 900. 900. 600
available TO the government during the
fiscal year ending June 30. 1918.
Democratic Leader Kitchin said to-
night that estimates submitted to him
by the Treasury Department made il
appear that the additional authoriza
tion probably would be necessary. Sec.
retary McAdoo will be asked TO cx-
plain the situation when he appears
before the Ways and Means Commit
tee tomorrow to discuss the forthcom-
Ing administration S1l.53S,945.is0 bond
and certificate bill.
Present indications. according 10 MIR.
kttchin. are ,hat $4,000, 100000 will
meet the expenses of the fiscal year.
hut 1t Is thought hest to have "a 81
000.0eo,0oo margin for emergencies. He
said: This estimate covers about So
o0o,o0o,oo0 for loans to the allies. s3.-
000.000.o0o OF which already has been
provided; s1.3o0.O00. 900 for current ei.
$4,000. 100000 for war expenses. In
cluded In the war estimate Is $4,000.
o0D for the new insurance bill and
$1,000. 100000 for the Shipping Board .
METHODS OF RAISING
GREAT AMOUNT NEEDED
The s2i.ooo. o0o. 900 would be raise d
as follows: bonds for allied loans, ST.
co0,oQo.0to: pending revenue bill. 49,
100000 600. war certificates. $4,000 600
600. bonds for domestic purposes al.
ready authorized. $4,000. 900. 900: pro
posed new bonds, $4,000. 100000. war
savings certificates. $1,000. 100000. and
regular revenue. $1,000 900. 900.
Approximately $1,000, 900 900 of the
foregoing amounts are included In the
bond and certificate bill. which tho
Ways and Means Committee TO day be
gan TO consider. The bill would au-
thoriZe s1,0O0.e91,000 for allied ioa,:s.
$4,000. o0J.o0c To bc used in rcfundins Z
"172 per cent bonds ALREADY author
ized; s2.poo,0oo.o0u in war certificates
and oo0.o00,o0e in war savings Ger
tihcatcs. IL also contains a rca ithor-
ization for $1,000 O0o. 600 in war Ger
titicates. and would provide for tax
! ing over other previously authorized
bonds in the following amounts. Fam
anna Canal. $22j.000.000: naval con-
struction. sl5O.Ooo.OeO Mexican border
control. Danish West Indies and Alas
kan railway. $1,000 900: per cent
Panama Canal bonds issued in 1916.
s63.s45.4so
No attempt will be made Mr. Kitchin
believes. to add the newly suggested
$1,000, 100000 issue to the bill now be-
fore the committee. 1t will come Iii ~
separate measure. II at all
NO HOPES OF PASSING
MEASURE BY WEDNESDAY
brief meeting of the committee to-
day to consider the bill made IL or
vious that hopes of leaders to pass
the measure Wednesday could not be
realized. An insistcnt demand Cor the
full discussion in committee and ON tic
floor created doubt il the bill could he.
passed before the end of this week AT
the earliest.
Several members indicated TODAY
that they would oppose Secretary Nc
Adoo's plan OF taxing the bonds There
was no indication. however, of on
position to the general terms OF the
bill.
AS drafted by Secretary McAdoo and
laid before the committee. the measure
would authorize the issuance OF ST.
538,945.000 worth of bonds to meet
allied loans. and s2,O0O,0OO,OO0 worth
Of certificates. respectively. to dis
charge other obligations not desig-
mated. All would draw per cent in
terest. and be subject only to super
taxes and war profits and excess
taxes
Substitute taxation proposals cover
a wide range. including straight
levy of per cent ON the interest re-
turns and the fiat income tax. These
varying plans represent personal opin-
ions of members without regard to
party Affiliations.
GENERAL DISCUSSION
TO DE INDUCED IN
In addition to discussing the pro-
posed Issue. general discussion of the
war financing situation will be in
dulGed in with a view to evolving a
definite plan for possible future issues.
The convartibility feature, brought to
the fore by the provision of the present
bill to permit exchange OF previous
31-2 per cent war authorizations for
the new Issue, was expected to cause
much debate. Several members were
opposed to permitting future CONVEX
sion Of bonds bearing 4 per cent for
higher interest Issues regard
less OF the state of the money market.
Work in the House. which meets
Tuesday, for resumption of regular ses-
sions. following period OF three-day
recessss will depend largely upon
Continued on Fourth Pagc.)