The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1917-04-12
THREEAND A HALF BILLION
CONGRESS ASKED TO PROVIDE
THIS AMOUNT IMMEDIATELY.
Bond Issue, Increased Taxation on
Estates, Large Incomes, Whis-
key, Beer, and Tobacco.

diately $3.502, SIT, 900 to finance the
war for one year. approximately as
follows:
For the war department $685.
537,933.
For increasing the authorized
strength of the navy to 10000 men
and the marine corps to $4,000,
s175,S55,762.
For other necessary expenditures
for the naval establishment at the
direction and discretion of the presi-
dent, s292,53S,7s0.
For the coast guard so that it may
perfect and bring to a high state of
efficiency its telephone system of
coastal communication. 100000.
A bond issue, increased taxation.
including higher taxes on estates,
large incomes, whiskey, beer, tobac-
co and new methods of taxation prob
ably will be resorted to to raise the
huge amount.
Unofficial estimates to the federal
reserve board are to the effect that
the banks of the federal reserve sys-
tenn are in position to absorb up
to 2,000,000,000 of war bonds at
once at rate of interest not exceed
ing 8 1-2 per cent Secretary Nc
Adoo authorized the statement that
he thought the government would
have no difficulty in raising the
necessary finances.
Doesn't Include Loans to Allies.
The estimates calling for the ap-
preparation of money for carrying on
the war. were couched in general
terms. The great total does not in
clude possible loans to the allies,
part of the administrations pro-
gramme as outlined in the presi-
dents address to congress and de-
mands upon the country's finances
will be increased by whatever
amount it is decided to place at the
disposal of the entente governments.
Secretary McAdoo said tonight he
has received many suggestions from
bankers and others and was investi-
eating every phase of the situation.
John Shelton Williams, comptroller
of the currency, is in New York to
consult, it is understood, with bank
ers there regarding the proposed
bond issue.
Chairman Simmons, of the senate
finance committee, intimated that
short term notes might be issued to
a limited extent to make Immediate
ly available a portion of the sum de-
sired. He said he was waiting on
Secretary McAdoo for suggestions
and thought plan of action would
be framed shortly.
z Income Tax Amended.
: Representative Rainey, of Illinois,
ranking majority member of the
ways and means committee, which
will have the final say in drafting
the war revenue bill before its pre-
sentation to the house. declared to-
night that the income tax probably
would be amended so as to furnish
the government with greatly increas-
ed revenues during the war.
My view is," he said, that while
the war lasts no man should enjoy
an income of more than $4,000 or
100000 year and that the govern
ment should take all over this
amount. We could obtain also
s2O0,00O,OO0 additional annually by
raising taxes on whiskey and beer to
a level with what they were taxed in
England before the war started.
"The excess profits tax now in
force must graduate, making it heavl-
est on largest profits. The tariff is
impossible as a source Of revenue
during the war.
Lowering of the income tax exemp-
ton to $4,000 and possibly to ST.
500, are among the proposals under
consideration. What such action
would mean, one official said today,
in actual revenue could not be fore
cast even approximately, because OF
lack of information upon which to
base an estimate. A conservative
view was that at the present rate OF
taxation 100000 would be add
ed to the government revenues; by
lowering the exemption to s2'ooo
some officials thought that the re-
turns would be doubled, bringing the
total to approximately s650,OoO,OoO.
Increase Tax on Estates.
Proposals under consideration to
increase the federal tax on estates
up to 40 per cent. on very large es-
tates would swell the government