The World. [volume] (Martinsburg, W. Va.) 1912-1921, 1918-11-13
NJ ADOO SAYS TAXES
AND LOANS STAND
GOVERNMENT FINANCIAL NEEDS
FOR MANY YEARS WILL Run
OVER 5000 coo. coo ANNUALLY.

OVER $4,000. coo. coo ANNUALLY.
Government financial needs for
many years are almost certain to run
above s4.o0o0oo,oo0 annually. Govern
ment experts estimate and most Of
the money will be raised by taxation.
Consequently students of Government
finances think the taxes imposed last
year and paid in June probably VIII
not be Hehtened Materially by he
advent Of peace.
Secretary MeAdoo today warned
that taxes necessarily would be high
for many years to pay of war debts.
aud that additional Government loans
woald be required He did not attempt
to forecast how bis the volume OF
taxes would be.
Roughly Treasury officials and Con
gressional leaders in caarge of rev
enue legislation figure this way
Expenses Put at s4.25o, coo 600.
Ordinary Government expenses
which ran around $1,000 600 600 a yea-
before the war, now will amount to
at least $2.000000.000 annually for
many years. and for two or three years
after the war may be double that fig
ure. If the $16.S500o0 of Liberty Bonds
already issued are increased in vol
ume by later loans to $25 1000 100000.
the interest on this sum would amount
to about 81 100000, 900 year In addi-
ton. it probably viii be the Govern
ment's policy to establish sinking
fund to pay off the bonds at maturity
and this would require about $1.250.-
900 year These three items would
make an aggregate near $4.250.0Oo.-
GOO
To offset this there would be neary
$500 900 600 coming in annually srom
the Allies as interest ON their loans,
which now amount to $1,000 900 00o and
are Likely 10 run much higher, and
revenue from customs and miscellane-
Gus sources, which last year amount
ed to about s45o000,000
With allowances for wide variations
in these calculations there would still
remain about $4,000 100000 to be rails
ed from internal revenue taxes. Last
year s3.643.0000OO came in from in
ernal revenue, including $a,716.oOO,-
600 from income and excess profits
taxes This year these figures prob
ably will be more than doubled.
Income Taxes to tSay..n
Factors which make this system of
estimates highly tentative, officials
poitn out. are that the war is not yet
definitely over. so far as expense is
concerned, and that war debts both Of
the American Government TO the pub
lie and of the Allied Governments to
the United States cannot befigured un-
til then Reconstruction policies, yet
to be formulated will have much to
do with determining how many exist
ing government wartime agencies
shall be continued, and consequently
how high ordinary government expen-
ses will run. Besides on the condition
OF business and foreign trade after the
war must depend the weight of the
tax burden which can be borne.
The methods of applying taxes after
the war also are receiving attention
If the schedule of Income taxes now
being framed in the new. revenue bill
works out we'll it is considered prob
able that the bulk of after-teh-war reve-
nue. will come from income levies
which next year will. yield probably
s2,5eo,o00.OoO Excess profits taxes
probably would automatically be abn-
doned after the war and liquor revenue
will stop if the constitutional prohi-
bition amendment is ratified and
sooner with the passage of the war
time prohibition bill 1t is almost GER
tain that the multitude of minor taxes