New-York tribune., 1917-07-28
Loans to Allies May Bring
Years Total to
Is Billions
7 Billions Needed
To Meet the Bill
McAdoo Plans to Raise
$5, 900, 900, 900 With Bonds,
Rest With Taxes

Washington, July 27.-Estimating the
cost of the war for the coming year At
S10,735, ,s07 ,000 exclusive Of loans 70 the
Allies, the Administration informed
Congress to-day that new revenues
totalling $1,000, 100000 must be raised
from taxation or issuance of securities.
II advancement Of credit to the Allies
is continued at the present rate the
years total Of war expenditures will
pass 5000, 900 900, and the amount Of
additional revenue required will in
crease accordingly.
The average daily cost Of the first
year of the war TO the United States
will thus be s2s,413l69 for military
needs and $11, 1,6s2,9s4 for loans to the
Allies. This exceeds by s7,000,000 the
present daily cost of the war to Brit
ain, and also exceeds the present ex-
penditure of all the Central Powers.
The difference is explained largely by
the fact that the United States is con
fronted with the task OF creating q
huge military establishment. doing
work IL could have done in past years.
American rates of army pay, too, are
many times those Of the Teutons and
the French.
How Congress will meet the enor-
nous new revenue requirements re-
mains to be determined, but there Is a
distinct sentiment in favor of offsettipg
most of the expenditures by bond Is
sues. Many leaders on both sides OF
the Capitol predicted tonight that not
more than s2,000,000,000 Of the $1,000
100000 asked would be raised by taxa
tion, and that the remainder might be
met partially by bond sales and partial
ly by issuance Of Treasury certificates
Of indebtedness.
Army To Get Lions Share
Equipment and stores for the Ma.
tional Army, particularly artillery, will
require the lions share Of appropria-
tions under the Administration esti-
mates. OF the years total Of Sl0,735,-
100000, the War Department alone ex-
poets to spend S7,S64, ,240, 900. or s5,-
3l9,000,000 more than has been appro-
prated thus far for its expenses dur
ing the year.
The navy expects TO spend $780,
100000, of which s28S, 900, 900 remains
to be appropriated. The Shipping
Board, whose shipbuildng projects
place it third on the list. expects to
spend s799, ,OOO, 900, Of which $3.50, ,0o0,-
900 remains to be appropriated.
These figures cover the cost Of the
war from July l last to June 30 next.
They do not include the money spent
prior to the first Of this month.
Tax Bill To Be Revised
Estimated receipts for the year were
placed by Secretary McAdoo, in trans
hitting the estimates TO the House
Ways and Means and Senate Finance
committees. at sl,333, 100000. This
estimate OF receipts did not include
revenues TO be raised under the pend
ing war tax bill, estimated by Admin
istration leaders in Congress at sl.670.-
10000. Revision of the bill will begin
Immediately, TO embody whatever sddi-
tional taxation IL may be deemed best
TO impose as q result Of the new es;i-
mates.
Tremendous as are the estimated eX-
penses of the government for the year.
the appropriations actually sought by
the various departments are placed
above these totals in order TO provide
a margin of safety.
Thus the War Department, expecting
to spend $7,s64 100000, asks for appro-
priations totalling ss,673 ,36S,000, and
the Navy Department, estimating its
expenditures at 81 200. 900 900, asks for
appropriations of $l,324. 900. Total
appropriations sought by all depart
ments aggregated 1910, ,l93,993. or
nearly sl,000,000,000 more than ssti-
mated expenditures.
Is Billions May Be needed
Should this sum be authorized by
Congress. with ar additional s4,500,-
100000 for the Allies, which would be
necessary 10 keep up the present rate
of loans totalling $500 100000 a month,
the total TO be raised by bond issues
and additional taxation for the current
fiscal year would be more than
$4,000, 900 900
It has been indicated tha. additional
authorization for loans will not be re-
quested of Congress until the new ses-
sion begins in December. With esti-
mated expenditures Of siO,735.s 900
as the basis for computation, the fol-
lowing deductions from the total Of
estimated expenditures were made in
reaching the $1,000 900 total OF new
revenues needed:
Income for the year under existing
laws, 1888, 500, 900; bonds authorized
under the war finance bill Of April 25.
but not issued. $4,000, 100000; other
bond issues previously authorized to
reimburse the Treasury for various
items Of expense, about 100000, 900;
total, s3,733 500, 900.
Estimate of Receipts
The estimate OF receipts during the
next twelve months was computed as
follows:
From customs duties. S225, ,000, 900
From ordinary internal