New-York tribune., 1917-07-27
New Budget
For War Nears
Ten Billions
War Department Estimates
Call for $685.
$4,000
$4,000, 900, 1000 More
Needed for Loans
House Members Propose In
crease in Tax Bill to
$2,225,0 100000

Washington, July 26-The new war
budget to carry the government
through to next July and TO cover
additional credits TO the Allies prom
ises now to far exceed eight billion
dollars and may mount to ten billions.
War Department estimates sent TO
Congress to-day call for new appropria-
tons of s5,27S,6Se,oO0 for that branch
of the military establishment alone.
Estimates totalling another $1,000, ,oO0,-
900 or more are expected tomorrow
when the other departments report
their needs, and in addition Secretary
McAdoo mas indicated tnat before the
year Is out Congress will be asked for
a $4,000, 100000 appropriation TO in
crease the fund available for loans
abroad.
The greatest item in the est aates
Is that Of So, S,6l3, 900. for armament
Of fortifications." This represents
half of the total asked for
War Department plans to make the
country's coasts as safe as possible
from attack.
Favor Tax Increase
How much of the new war expenses
should be raised by taxation and how
much by bonds or Treasury indebted
ness certificates is a warmly debated
question. Secretary McAdoo may ad-
wise personally with the House Finance
Committee on the subject. Committee
sentiment tonight seemed to be in
favor of increasing the Sl,67O,6OO,oOO
war tax bill only to about $4,000, ,OOO,-
00o, with authorization both for new
bond issue, possibly at a higher in
terest rate and in serial form. and for
issuance of Treasury certificates OF in
debtedness.
Secretary McAdoo is said to favor a
much larger levy OF taxes, and a few
committeeman favor increasing the
bills total by s1,000000, 900, or at least
to s2,225, 100000.
May Increase Interest
Whether the interest rate on the new
bonds shall be increased also Is causing
much discussion. Some committee
leaders fear it may be necessary TO is-
sue 4 per cent securities. .
The law provides that if bonds sub
sequently issued shall bear higher
rate, the first issue also shall bear the
increased rate. There is a strong SEN
timent that the new bonds shall be in
serial form instead of running for
twenty years.
AS TO the sources Of the new taxes
sentiment in tie committee apparently
Is tending toward securing the bulk
of the increase from war excess prohts
and incomes. Excises or consumption
taxes and few other minor new leyles
also are being considered.
Several War Department officials VIII
appear tomorrow before the Finance
Committee to explain their new esti-
mates. Chairman Simmons said to-
night that while the present years ap-
propriations already total S9,226,OOO.-
600. il is estimated that only about
s5. 900 900 900 Of that will be spent dur
ing the fiscal year, or before June 80
1918.
Estimated deficiencies of s5,917 ,S78,-
347.98 in War Department funds were
shown to-day in the communication
received by the House from the Sec
retary Of the Treasury. The amourt
includes S639 ,24l ,422 appropriated with
the passage of the aviation bill. MAX
ing the total deficiencies S5,278,636'-
1888.
Following are the estimates submit
TED by Secretary McAdoo:
Office OF the Chief Of Staff, contingencies:
military information section. General stan
Corps, s4S9. 100000.
Signal Service Of the army, commercial tel
Artillery posts, Quartermasters Depart
Psv etc of the army. s715,s2s, ,440.98 ;
subsistence Of the army. s329.673, ,?lSl5.
Regular supplies. sl63.9lI.925.
Incidental expenses, Sll,OlO.i99.
Transportation Cost
TRANSPORTATION of the army and supplies.
Water and sewers at military posts, S3i.-
Clothing and camp and garrison equipase'
s35T. SOC, ,09T.65.
Horses for cavalry, artillery and engineers
s5l. l.I5l, 1866. .oo,oooo
Shooting galleries and ranges. s6.Oli $40.
Roads, walks, wharves and drainage. w.
27O.OOO. .,- %,
960. 900. ,o,,o
Civilian military training camps. 2.lls,-
Medical department. medical and hospital
department, 800. .O26.00O.
Engineer department. engineer eauipmen'
u Engineer operations in the field. 500. .OOo,-
900. .oo-oo ooo
Ordnance stores. ammunition. S39.5?0 900.
Ordnance stores and supplies, $40 OOo.OOO'
Armored motor cars. S2l. 100000: ooo
Armament of fortiAcations, s2,46s,6l3,OOO
t-UO 900 DrOylnR gTOunis.
So. .OOO. 900; Benecia Arsenal. Beneeia' Cal'
sql 500: Frankford Arsenal, Philadelphia.
s., $50. 900 Picatinny Arsenal. Dover y. j.
s40. 900 Rock Island Arsenal. ROCK Island.
ILL.,, sl.645 200; San Antonio Arsenal, san
Antonio, Tex, SlS5. 900; Springfield Arsenal,
Springfield. Mass, s4i5.000; storage facili-
ties at armories and arsenals. $500 900: ter
noinal facilities, S25.000.000: Watertown
Arsenal. Watertown. Mass, Sil.5OO; test
ing machines, $4,000.
Water''liet Arsenal. West Troy n L.
S7s9 500.
Panama Canal. protecting Panama Canal
and canal structures. s692.sOO.
Submarine base. canal zone. Panama
Canal. S902,625.
Total. s5.2T5. .753. .750ss.
sUPPLEMENTALS
Signal corps. signal service OF the army.
$685.. .24l.4 .452. ,,,.
ouartermaster't Department. military
post. S339.OOO.
Barracks and quarters. sea coast defences.
s75O.O0o.
As soon as the departmental reports
are in the Appropriations Committee
of Congress will go to work on an i'm
mediate budget, which probably will
total in the neighborhod of $1,000
900 900. Mean time, the Senate Finance
Committee, which has the war tax bill
in charge, will meet tomorrow to con-
slider what part Of the new expendi-
lures is to be provided by taxation and