Omaha daily bee., 1917-07-29
WAR BILL FIRST YEAR
MAY Be 16 BILLIONS
Secretary McAdoo's Revised
Totals Indicate Budget AL
ready Eleven Billions
Exclusive of Loans.

| informed congress today that new
revenues totalling $7,000,000,O00 mus
be raised from taxation or issuanc,
Of securities.
| If advancement of credit to the al
lies is continued at the present rate
the years's total expenditures will
pass $l5,000,000,000 and the amour
of additional revenue required will
increase accordingly.
How congress will meet the enor
nous new revenue requirements re
mains to be determined, but there is q
distinct sentiment In favor of offset
ting most of the expenditures BY
bond issues.
Many leaders on both sides of the
capitol predicted tonight that moi
more than $2,000O00,000 of the ST..
000000,000 asked would be raised by
taxation and that the remainder
might be met partially by bond sale:
and partially by issuance of treas
ury certificates of indebtedness.
Cost of Army Equipment
Equipment and stores for the ma.
tional army, particularly artillery, will
require the lions share of appropria.
tions under the administrations es'
Inmates. Of the years total of $l0,-
735, 1907 900 the war department alone
expects to spend $7,864 100000 or
$3.50 100000 more than has been ap-
propriated thus far for its expenses
during the year.
The navy expects to spend ST ,200,-
100000 of which $286,000,000 remains
to be appropriated. The shipping
board, whose ship building projects
place it third on the list, expects to
spend $799, 100000 of which $350,000,-
900 remains to be appropriated.
These figures cover the cost of the
war from July |, last to June 80, next.
They do not include the money spent
prior to the first of this month.
Estimated receipts for the year
were placed by Secretary McAdoo, in
transmitting the estimates to the
house ways and means and senate
finance committees, at 33,500000.
This estimate of receipts did not in
clude revenues to be raised under the
pending war tax bill, estimated by
democratic leaders in congress at
$3.50, $4,000. Revision of the bill
will begin Immediately to embody
whatever additional taxation it may
be deemed best to impose as result
of the new estimates.
Tremendous as are the estimated
expenses of the government for the
year, the appropriations actually
sought by the various departments
are placed above these totals in or
der to provide a margin of safety.
Thus the war department, expecting
to spend $7764,240000, asks for ap-
preparations totalling $8,673, ,368,000,
and the navy department estimating
its expenditures at 81 $l,200,000000 asks
for appropriations of $1,324, ,178,000.
More Than Sixteen Billions
Total appropriations sought by all
departments aggregated $11,651, ,l93,-
993 or nearly 81 l,000,000,000 more than
estimated expenditures. Should this
sum be authorized by congress with
all additional $4,500,000,000 for the
allies, which would be necessary to
keep up the present rate OF loans
totalling $500,000000 a month, the to-
tai to be raised by bond issues and
additional taxation for the current
fiscal year would be more than $l6,-
000,000,000 1t has been indicated
that additional authorization for loans
will not be requested of congress un-
til the new sessions begins in De-
cember.
With estimated expenditures of
$10,735807, 900 as the basis for COM
putation, the following deductions
from the total OF estimated expendi-
lures were made in reaching the ST.
O00,O00.000 total of new revenues
needed:
Income for the year under existing
laws, ST ,333, 100000.
Bonds authorized under the war
finance bill of April Is, but not is
sued $2.000,000000.
From customs duties $22S, 600, 900;
from ordinary internal revenue SQUIRE
es $6s0,000,000 from the income tax
$3.50, 100000; from miscellaneous tax
es and other items $70,000,000; Pam
ANA canal tolls 100000 and depos-
its to retire national bank notes, an
item which is represented by the
same figure on the credit side OF the
ledger, $30,00O,000. No suggestions
or recommendation as to methods
for raising the money were made by
Mr.. McAdoo. He probably will ad-
wise later, however, with the finance
committee which wrestled all OF to-
day with the war finance problems
and will meet tomorrow for further
discussion. Radical differences OF
opinion exist within the committee
regarding the future financial burden.
Some prominent senator's insist that
despite the secretary's figures, at
least $8,000,000,000 additional revenue
must be found.
Revise War Tax Bill
Senator Simmons, chairman OF the
committee said tonight that he ex-
pected the war tax bill would be re-
vised promptly to provide for the
81 900 ,000.00 asked by the secretary,
although by far the greater part
would be in bond authorizations. The
latter, many members believe, must
bear interest at four per cent in
stead Of three and one half per cent
as in the case of the liberty loan.
With sentiment crystalizing toward
increasing the tax levy provided in
the bill to S2,000,000,000 the increase
of $330OOO,0OO is expected to be
made up largely Of higher leyies up
on incomes, war excess profits and
possibly tobacco. A few minor new
taxes also may be adopted. Senator
Simmons hopes to complete the re-
vision by the middle of next week