The Richmond Virginian. (Richmond, Va.) 1910-1920, 1917-08-20
Half-Billion a Month Needed
for Loans to Allies, While
Other Demands Increase
SENATOR'S ARE KEEkLY
INTERESTED IN PLANS
Chairman Of Finance Commit
tee Sees No Objection to Is
suing War Certificates Of In
debtedncss

While revenue originates in the
house of representatives, the MEM
bers of the senate finance committee
are naturally much interested in Sec
rotary McAdoos financial plans as
their committee must ultimately pass
on the money legislation.
The secretary's latest request to add
two billion dollars worth of GER
tifcates of Indebtedness and as much
in value of war savings certificates to
upon today by Senator simmons,
chairman of the senate committee.
Il do not see that there should he
any objection to authorizing the sec
rotary to make this issue" he said to-
day The war certificates would, l
assume. be Intended to cover a hiatus.
II is said the plan Is TO make the GER
tifcate of Indebtedness run five years.
Now that the secretary proposes to
retire the first three billion dollar lib
erty loan issue with a new bond is
sue of seven and one-half billion dol
iars. there has been some discussion
over the legality OF making the inter-
est rate per cent when the original
loan was IL.
The low" said senator Simmons
today. is clear on this point. II was
provided that If during the war an
other issue was put forth, the first
ssue would be entitled to the same
interest charge The rate OF per
cent would help 10 sell the bonds any
way and make them attractive to the
investor"
CT
Ados, of the treasury department. will
need at least SIC oao.0o0.oso for the
conduct of the war by the end OF next
June. This information was brought
forth tonight, following the sending TO
the house WAYS and means committee
saturday OF treasury estimates EN-
braciag new war budget bill, calling
for approximately $1,000 ooo.o goo.
Some time ago the various govern
ment departments estimated their ex
penditures or account Of the war
would figure up ten billion dollars hv
the end OF the fiscal year June 80.
1918. Since the war began the United
States has been lending money to the
allies at the rate of $500, coo, 900 a
month This would bring the expendi-
lures OF the United States in behalf of
the allies. in which the United States
government departments do not figure
up to $4,000 600 600 by the end OF the
next fiscal year, Since the estimates
were made, however IL has developed
that expenditures have been al a rate
which. IL continued. will make their
total larger than the estimated So
GOO. oe0.o5o by next June. and If the
present rate of the loans to the allies
continues that account also will be
larger than the estimated $4,000. 0ao .00G.
Just how much of the more than $ts.-
GOO. Zoo oo0 will be provided by bonds
and just how much by taxation can
not be said with authority by any
person in Washington. according to
statement at the treasury department
tonight. Much depends upon how much
money will be raised by taxation in
the war revenue bill. now being de-
bated in the senate. The bill when 1t
left the house of representatives pro-
vided for less than the approximate
sum OF 81. 600, e0o.o 900 in the bill as re-
ported to the senate by the senate A.
nance committee. No one will know
until the bill goes to conference be-
tween the senate and the house how
much it will raise. The committee
lost 100000 600 so to speak. when the
senate refused to adopt one-cent
stamp tax. and other items may be lost
when deba,e is resumed on the bill
tomorrow.
Since the estimates of necessary gov
eminent expenditures in the depart
ments were made there have appeared
the possibility of many other expendi-
lures. invoicing large sums. such as
the proposal to insure soldiers and
sailors now, for which a government
department or bureau similar to the
pension bureau, with large administra-
tive expense. would have to be ere
ated Many governmental RgencieA
not originally in the estimates OF what
the war will cost have been created
since the estimates were made. and
many appropriations of heavy sums
have been made for governmental agen-
cies since then which have been in
the nature of additional expenditures
not contemplated in the early esti-
mates