Arizona republican., 1917-12-09
NEW LIBERTY BOND ISSUES NOW SEEM
 ID BE NECESSITY
raepubliesn A. p. Leased wireJ

WASHINGTON. Dec. S.-Congress will have Go authorize early in the ses- zion converting next Monday, means of collecting from the American people 7ctWccu now and July 1, about five bill ion dollars in addition to the SS,666, pno000 from Liberty bonds already au- .hori1od but yet to be issued, the bill lion dollars or less expected from war saviugs campaign and about three bil- lion dollars firm war taxes.
 Most congressional leaders believe the five billion dollar balance must be | provided principally by issue of bonds, and Secretary McAdoo has told mem | hcss Of congress that he heartily favors | this method. If this plan is finally | adopted, the country probably will be | called on to absorb two more big lib- | crty bond issues between February | und July 1 aggregating more than SS,- | 500 GOO 000
 Another big finance question which | will receive thc early attention of con Eress is the continuance of loans to the 1 allies. lf the present rate of extending credits to the allies is continued the seven billion dollar authorized credits will be exhausted by July 1 and con gress will have to decide whether to continue the loans after that time. Six billion dollars will be required for the V b rate of a half billion dollars a month is kept up. Wide difference of opinion exists in congress over the question of whether thc bulk of the five billion dollars should be raised by taxation or bond Issues. but those advocating the issue of securities expect strong support from the administration. They are pre- pared 10 argue that the internal rev
  with the immense task of creating ma ,hiucry for collection of the $3,400,- rnon00 war revenue expected before JrIr l. and that great confusion would Ia,Ilt from imposition of new taxes aiorc opportunity has been given for tNr existing levies to adjust them- solves to the economic situation.
 Taxation advocates are expected to make a fight for establishment of new ttNcs on certain business lines and for Increase of income and excess profits rates. Under the present law, the esti- mated receipts from incomes is S1, 200. onooo0 and from excess profits $1,20O,- O10 00O
 Treasury officials and congressional leaders in charge of the finance pro- sran have no means of knowing at his time what success the war savings plan will mdet but most of them figure on receiving between $500. .000, 900 and fl00o 900 ,000 of the authorized two bil- ion dollar total before July 1.
 A number of other issues of treasury certificates of indebtedness may be looked for, Secretary McAdoo an- lounced tonight in anticipation of big tax collections next May and June, but these so-called tax certificates and also any which may be issued to prepare -he way for future liberty loans prob lbly will be redeemed before July 1 and consequently play only a minor part in the finance problems facing congress,
 In connection with the taxation leg slatiye program, it now is indicated hat congress will be asked by officials n charge of administrating the tax laws to make a number of amendments to the excess profits tax provision. Members of the excess profits advisory .unmittee. which has been assisting internal Revenue Commissioner Roper n interpreting the law, feel that it is impossible for the executive branch to define what shall be included in in vested capital" for instance, and that further legislation will be required to olarify this and several other sections.
 The advisory committee went to work today on its recommendations which will be submitted to Commits sioner Roper probably the middle of next week.