Evening star. [volume] (Washington, D.C.) 1854-1972, 1917-01-01
S194,S17,0OO NEW
TAXES ARE NEEDED
This Revenue, With $184, 256,-
600 Bond Issue, Is Neces-
Sary, Says Mr.. McAdoo.
NO REVISION OF TARIFF

To help meet an estimated deficit in
The United states Treasury of s27s.ooo.-
900 by June so, 1918, and to provide an
extra sI00, 100000 as working pal
auce, Secretary McAdoo is of opinion
that Congress will be compelled to
raise by taxation in the next fiscal
year S194.Si7,0oo.
This takes into account. which Sec
rotary McAdoo takes for granted. the
issue of bonds to the value of S1S4,-
256.000 to reimburse the Treasury Tor
s16e.41S,OO estimated expenditures for
the Mexican border patrol up to June
30 next. and for $21.s3s.000 estimated
expenditures for the Alaskan railway
up to June 80, 1915.
Secretary McAdoo would raise this
additional revenue by further interior
taxation. He contemplates, in his
present statement, no revision or the
tariff to bring in revenues. Nor would
he issue. other than the bonds provided
for by Congress-bonds to meet current
expenditures of the government.
Measures Up to Congress.
How shall this money be raised ?"
asks Secretary McAdoo. ut is not for
the Treasury Department to prepare
revenue measures. That is the sole pre-
rogative of the Congress. The function
of the Department is to furnish all
available information and to submit
suggestions for the consideration of the
Congress. What l say is, therefore,
merely an expression of my personal
views i am and always have been OPP
posed to the issue of bonds to meet cur
rent expenditures of the government.
Nothing could be more unsound than to
fail to pay as we go.
There is, however. this distinction:
First. that for permanent Investments.
. such as the purchase Of the Danish
West Indies and the construction of the
Alaskan railway; second, for the con-
struction and purchase of vessels for
the merchant marine. and the construc-
ton of nitrate and armor plate plants,
all of which have commercial and
marketable value and which are also
. in the nature of permanent invest
ments; and third, for extraordinary ex-
penditures, due to national emergen-
cies, such as the necessity for patrol
ling the Mexican border. and which it is
manifeStly impossible to anticipate in
revenue legislation-for all of these it
Is proper to issue bonds. This also APP
plies to the Panama canal, which is a
permanent investment and on account
of which there has already been ex-
pended out of current revenues $751;
10s.2s3.
Estimated Expenditures.
Taking into consideration, however,
only the following estimated expenditures
for the Mexican border patrol up to June
30, 1917. s162, AIS. 600; estimated expendi-
lures for the Alaskan railway up to June
20. 1918. s21-S3s. 900, there will be a total
expenditure Of s1s4. 25S. 900 out of the gen.
eral fund Of the Treasury, for which 1t is
clear that the Treasury ought to be re-
imbursed by the issue Of a like amount
Of bonds
ITO summarize:
''The total new money to be raised for
the fiscal year ending June 30, 1918. is, as
Proposed bond issue. 1854, 25s, 600
Leaving to be raised by taxation.
$1s4. Z. 900.
"The wealth and resources of the coun-
try are so great that it will not be diff
cult to raise this amount approximately
$500. 900. 00O) by internal taxation, which
can be distributed in such way as not
to bear heavily or unjustly upon anybody
Bonds Already Authorized.
The Congress has already authorized
the issue of bonds to provide the
s50.ooo.o00 authorized for merchant
: marine. and the s2o.000.000 authorized
for a nitrate plant I presume that
~ nds will be authorized by the Con-
gress for the $4,000 900 REQUIRED for
the purchase of the Danish West In
Sies. II this should be DONE and bonds
Y hould be issued to cover the Mexica n
= rider patrol and Alaskan railway ex-
= mixtures. a total issue of $279256 900
; of bonds will be made ultimately.
There is not included in the fore