Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-04-25
u. s. GIVES BRITAIN
FIRST WAR LOAN
McAdoo Turns Over War
rant for $2OO,OOO,OOO to
Spring-Rice
INCOME TAXES OPPOSED
WASHINGTON, April 25.


Americas first war loan to Great Britain
was consummated at IL o'clock this morn
ing, when Secretary OF the Treasury Will
| liam G.. McAdoo signed "A Treasury warrant
| for 5000, ,O00, 600 and turned it over to Sir
Cecil Spring-Rice, the British Ambassador.
The warrant was signed in the presence
of Lord Cunliffe. governor of the Bank of
England. and the other British financiers
who accompanied the Balfour war mission
to the United States.
A receipt for the warrant was signed by
Sir Cec-Spring Rice, as the official repre-
sentative In this country of His Britannia
Ma iesty, and handed to Secretary Of the
Treasury McAdoo.
British Government bonds. bearing per
cent interest are to he turned over To the
American Government in payment for ti~
5000, 900. 900 loan. The actual turning over
of the bonds is scheduled to take place
June 30
The warrant signed today is the largest
ever signed by any american Secretary of
the Treasury
The loan couSummated today Is prelimi-
nary to a series of other and greater loans
that will be made to England and her al
lies to aid them in prosecuting the war on
Germany.
ury certificates of Indebtedness, which were
announced for subscription only last week.
The issue was sensation2'lv oVersubscrlbed.
The money was called from the subscribing
banks at 10 o'clock this morning.
AT WORK ON TAXATION BILL
The House Ways and Means Committee
began its preliminary work toward raising
close to 1000 900. 900 by taxation.
Despite strong pressure favoring heavy
.yt.,ti.a
today that old-line. hard shell believers in
old-time methods of raising taxes on liquor
mail matter, checking accounts, etc, Will
bitterly fight any such innovation as pay
ing most Of the wars expense with income
surfeits.
A revenue bill will be completed in about
n week. 1t will provide for new taxes to
the amount of from Sl,600,000000 to
S1,75O, 100000. a subcommittee of the
Ways and Means Committee, in daily meet
ings, is preparing a tax bill to present to
the full committee for approval.
The $1,000. 10000 war budget bill pro-
vded $4,000, 100000 in bonds and $4,000
100000 in treasury certificates of indebted
ness. Three bll.o'.S in bonds are to go to
the Allies. The otner two billions will help
pay the first of the United States war ex-
penseS.
Secretary of Treasury McAdoo will have
absolute charge of the distribution of the
Allied bonds. lie viii also fix the denomina-
tions of the bonds and their time of ma
turity.
The Ways and Means Committee must
raise taxes sufficient to meet the $1,000
100000 in treasury certificates. These are
used to obtain money for Government use
in anticipating taXes-in this case the taxes
to be raised by the forthcoming revenue
bill They amount to Government II o U.s.
and are issued to banks at ~ per cent
interest, the same as that the bonds.
They are paid by the Government when
the taxes are received at the treasury.
OPPOSES PROFITS TAX
Abolition of the excd;s profits tax and
substitution of increased income taxes on
the corporations of the country was today
recommended to the Secretary of the Treas
ury by r. j. Reynolds. the Winston Salem,
y. c., tobacco magnate.
Reynolds assaled the excess profits tax
unjust to the smaller business interests
of the nation. Under it the financial burden
of the war would be saddled not upon large
corporations, but upon the small business
man. An increased income tax, the ma
chinery for the imposition Of which is al
ready in existence, is the only equitable
method of distributing the burden, in Rey-
nolds's opinion.