The Washington times., 1917-04-08
RAISING WAR FUNDS
Big FINANCE FACTOR
Wall Street Interested In the
Methods to Be Employed by
the Government.

1t Is not surprising, perhaps. that
more or less radical ideas should de-
velop. with respect to taxation to raise
funds for purposes of war at q time
OF crisis such as this country IL now
facing. The Secretary OF the Treasury
calls for an appropriation of $3,401,-
6S4.S7, of which sum all but about
and naval expenditures. This money
will enable the Government at Wash
lngton to put the army and navy on q
war footing. But the question which
interests Wall Street most is, OF
course, the methods to be employed in
raising these funds.
1t has been a matter for wonder
ment that the bankers of the country
have not been more fully taken into
the Governments confidence in an ad-
visory capacity, as has been so freely
done in other phases OF the prepared
ness movement Financing ourselves
and aiding the allies with our ample
means is q project OF the FIRST impor-
tance, since the entente's greatest
need at this time Is for credit and sup
plies and the facilities for adequate
transportation. Neither the army
scarcely at all nor yet the navy fully
Is prepared to jump into the fray.
Therefore, we must help with money
and supplies now while getting ready
our military and naval forces.
Financing War Big Factor.
So the big factor at this moment Is
the raising of funds. 1t is felt quite
Justly that a portion of the money re-
Quired should be raised by long-term
bond issues so that the generations
to come should bear a part OF the bur
den of this mighty conflict between
democracy and autocracy, q success
ful issue to which will beneht succeed
Ing ages. Two billion dollars could be
made Immediately available In this
way, it is estimated, at q rate of in
terest approximating 3 to az per
cent. 1t Is proposed to fix the inter. |
est rate now and adhere to It as close. |
ly as may be for future issues. The |
sale OF $25,000, 900 State bonds this
week would seem to Indicate success
for Federal issues
There is, however, a most whole |
some desire on the part of Washing
ton to raise as much money by means |
OF taxation as would not be unduIy |
nurdensome for the present genera |
N@OA-@ - - AZ lhl6 COuuCCIlOn LQRI FaQ- |
ical ideas have been put forth. |
Money raised by taxes for war pur- |
poses IL to be spent. Every citizen |
should be given the privilege of con- |
triouting something; hence IL 10 fair, |
perhaps. that the income exemption |
should be lowered SO as to include In |
comes OF $1,000 or even less. War
profits should be taxed with due care |
that industry may not be DISCOURAGED |
or shampered. Incomes derived from |
accumulated funds should be taxed at |
a higher rate than incomes derived |
from wage earning, is a suggestion |
frequently heard.
Suggestions For Raising Funds.
1t Is suggested that no man during
the war should enjoy an income in ex-
cess OF $4,000 or 100000.
All of these references to sugges-
tions advanced in the past few days
are intended merely to draw attention
to a state of mild confusion as to
procedure, natural In this period OF
excitement. They also serve to en-
phasize the dnited support which the
whole country Is prepared to render
to the President in a righteous night. |
This determination of the people Is |
Dg lnC chInuSl-
asm into which every form of help
is entered.
Industrial mobilization Is going on
apace. 1t Is estimated that over
$4,000 plants have been offered to the
nation, and It is important to remem-
ber that these plants are ready at |
once to turn out munition and other
supplies, thanks to the Industrial ex-
pansion with a war complexion OF the
past two years or more. The new
phase OF our entrance into the war
will give impetus to industry, al
though there can be no longer a ques-
tion OF the large profits which have
been forthcoming from the European
belligerents. Reasonable profits only
can be derived from this country's
tion for our allies would furnish sup
plies to them at the same rate.
Bolster To stock Market.
Although Congressional debate and
obstructive tactics on the part OF q
small group OF unpatriotic legislators
prevented prompt action on the
war resolution so much to be desired
for it's influence on both camps of
Europe, the measure has gone
through DOln Win
ties that can leave no doubt OF the
unanimity OF the peoples sentiment.
The stock exchanges and the other
exchanges were closed In Observance
of Good Friday, so there was no Sc
curities market to be affected by the
intelligence.
That a state of war actually exists
Is likely to be momentarily disturb
ing, but majority opinion in Wall
Street leans to the view that the /
stimulation to trade and industry
will act as a bolster to the stock
market. particularly when II is re-
membered that prices have shown all
along a consistent resistance to pres
sure. There have. indeed, been
sinking moments, but prices invar-
iabIy have rebounded. Prior to Fri
dav the stock market was more or
less confused. Trading was only
moderately active. with now and then
considerable selling iniative. Doubts
as to our financial measures unques-
tIonabIy caused such weakness as was
apparent Otherwise, trading was
wholly in the hands Of the profes-
sIonal elment.