The daily times. [volume] (Wilson, N.C.) 1902-1936, 1918-11-15
RECONSTRUCTION
Of THE WORLD
And the Responsibilities Con-
nected Herewith are Up
to America
SEC'Y M'ADO'S PROGRAM

SECY MADO'S PROGRAM
Washington, Nov. 15.-Revision
Of the pending revenue bill with
view to yielding 000,O00,OO0 pay.
able during the calendar year 1918
and not les than $4,000, 100000 the
/, following year, vas recommended
by Secretary McAdoo last night in a
letter to Chairman Simmons, of the
Senate Finance Committee, setting
forth the Treasury's financial pro-
gram for the reconstruction period.
The secretary estimated that ex-
penditures during the fiscal year
ending next June 80, now would be
SIS, 000,00O,O instead of the $24,-
estimated before there were pros
poets OF peace. He declared for
! continuation of the policy Of loaning
to the allies for limited time dur
ing reconstruction cfter peace to en-
able them to purchase foodstuffs,
raw materials and manufactured
products in this country.
Other recomme eidations We're:
That income and profits taxes be
payable in four equal quarterly ~
stallments on March Is, September
Is and December is.
That excess prot,s tax rates Tor
payments due next year be no high
er than those in the existing law.
That necessary safeguards bepro
vided for war and excess profits tax
es in the form of adequate provis
ions for amortization, conservative
valuation of inventories and ascer-
tainment of minimum income which
shall be exempted from the tax to
insure the taxpayer against injustice
and avoidable injury,
That war and excess profits taxes
be eliminated entirely from pay
ments due in 1920 except with re-
spect to profits on contracts negotia-
ated during the war period.
That corporation and individual
income tax rates be increased on in
con.s = of 1919 payable in 1920;
That the basis fer next years tax
es payable in 1920 be determined
now.
The secretary also urged prompt
enactment of the pending bill. He
estimated the revenue yield from
the measure as framed by the Sen
ate Finance Committee at $6,300,-
100000 provided by the bill as
passed by the House, which he de-
clared "is more stringent than the
changed situation will justify"
1.-THE existing law is not satisfac-
tory to the country nor to the treas
ury," he added.
Mr.. McAdoo did not refer to the
fifth war loan which probably will
be floated next spring, but his calcu-
lations Indicated that the size of
this might be around 5000, 100000
gathered from the fourth Liberty
Loan, and the eighteen millions Of
expenses.
The Senate Finance Committee to-
day will examine Mr.. McAdoo's let
ter said in the main he approved the
added that they were along the lines
he and the Secretary had discussed
at repeated conferences.
After reporting that government
expenses for July, August, Septem-
Der and October this year, amounted
to $685., 100000 or $3.50, 900, 900
q month, Mr. McAdoo in his letter
said:
There seems every reason to an
ticipate a large reduction in the
governments expenditures during
the balance of the fiscal year. How
great that reduction will be it is i'm
possible at this moment to estimate.
"The United States will be the
fortunate possessor of foodstuffs,
raw materials and manufactured
products of which Europe and the
rest OF the world are in dire need.
Not all of the allies can fully pay us
in gold, for some have little and 9TH
ers none to spare; nor in commodi-
ties during the period of reconstruc-
tion, for some of them will not 80
soon be able to resume normal ac-
tivities; and the United States must
beprepared to continue, therefore, to
enable the governments of the al
lies or some of them to AXE pur-
chsses on credit. I shall promptly
ssk Congress for authority to con-
tinue to establish such credits and
make loans within reasonable limits