New-York tribune., 1917-04-09
i. S. to Raise
$l,75O,O0O,0O0
More by Tax
Congress to Impose Levy Be
sides $1,000, 100000
Bond Issue
Allies Get Loan
AT 3I2 Per Cent
Incomes and Commodities to
Bear Bulk Of Assessment
First Year Of War

Washington, April S.-Presideut
Wilson's policy. outlined i'm his address
to Congress, Of paying Americas war
bill, so far as possible, while the war
ic being waged. leaving a minimum debt
to poSterity. was reflected tonight in a
virtual decision by leaders in the House
and Senate to raise 30 per cent of the
first years expenditures by taxation.
Under this programme Congress will
be called upon to raise war revenue 10
the extent of $l,75O,OO0,o0O through
new and increased measures OF taxa
tion during the fiscal year ending June
50. 1918. This is exclusive Of the
$1,000, 100000 bond issue. authorization
for which will be sought of Congress
this week. The total demand upon the
financial resources Of the country dur
ing the first year of war under this pro-
eramme would be $3.50. 900.
OF the $4,000. 100000 to be raised b.
a bond issue S3.OOO,OOO 600. # was def
uitely stated tonight, would be loaned
to the Entente Allies. The entire is
sue, House and Senate leaders have
agreed. will bear interest at the rate
of ga per cent. II is proposed to
make the loan to the Allies at this in
tercst rate, which is lower by far
than the rate they have been COM
nelled to nav on their previous issues.
Ready for Emergencies
After the Entente governments have
been granted t,.e loan. the plan Is TO
hold the remaining S2,OOOG0,OO0 of the
$4,000 100000 to be applied as neces-
sary on the cost of the military and
naval establishments and other war
expenses Of the United States. Indi-
cations are that, with the new war
! ,-,rasures in effect, ~ ~ amount
/ SO. .0OO. 900 600. would not be entirely
exhausted at the end of the first year.
In requesting authorization for
$4,000. 900 bond issue Admlnistra-
ton leaders have in mind the neces-
sitv of allowing for slight margin
of safety, so that the work OF the war
and Navy departments would not Dc
bandicapped by a lack Of funds. due
TO the possible failure OF proposed TAX
measures TO raise the entire sum Oh
30 per cent desired
Indications are strong that congress
will he asked to authorize the 5o'OOo,-
600 600 in one lump sum. Leg slatlon
"a This effect will be considered by tne
Ways and Means Committee WITHIN lhe
neyt day or so-possibly tomorrow
and nrobably will be reported TO Con-
oress for action before the end OF the
week. ~ 81, .Lo
honor of carving through in the House
tho Administration immediate imam
c;al nrogranrme. Recalling Mr.. hltchlh
onnosition TO the war resolution, mem
hers of the committee are prepared
bowever. 70 relieve him Of this duty
should he personally oppose the plan
In the Senate the Finance Committee
j. preparing TO study the measure
loosely. as exported by the Ways ana
Means Committee in the House, with
view TO reporting It promptly 20 the
Senate.
Bond Issue to Pass Quickly
Indications are that the Admins
tration's financial programme will meet
with overwhelming support IN botn
houses and that the proposed BOND
issue will be authorized without loss OF
time.
Considerably more time, It IS thought
will be consumed in the passage OF the
war revenue measure to follow. Senti-
ment i'm Congress, apparently crystal
lied in support of the programme oi
advancing an enormous loan to the
Allies. varies greatly as to the methods
20 be pursued in raising revenue
through taxation.
In general terms. 1t seems certain
that the bulk Of the additional reye.
rue will be raised through revision OF
tho income and excess profits tax laws.
Suggestions that part Of the war rev
cnue be raised by the imposition OF
stamp taxes on checks and other docu-
p,ents. and that consumption tax be
placed on sugar tea and coffee, have
been made in both branches Of Con-
officials in charge Of the financial
nropramme found themselves to-day
ihe centre Of countrywide lombard
ment Of kilograms and letters Of ap-
proyaL