The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-09-19
WAR COST THIS
YEAR NOW PUT
AT 80 BILLIONS
Congress Leaders Will Con.
suit McAdoo To-day on
Money Problem.
NAY DRAFT NEW POLICY
Gen. March Says $7,OOO,OOO,-
900 Deficiency Must Be
Met With Cash.
NAY DRAFT NEW POLICY
Special Despatch TO The Sex.


the injection Of new and absolutely
unexpected elements In the situation
the financial problem of the Govern
ment to-day began to overshadow in
Importance every other war consid-
Grafton.
Indications of how seriously the
problem was viewed were afforded at
both ends Of the Capitol. particularly
after 1t became known this afternoon
that Gen. Peyton c. March, Chief Of
Staff, had informed the Ways and
Means Committee that almost all of
the new deficiency demands Of the
War Department. amounting to more
than $1,000. .OOO. 900, would have to be
met in cash.
So concerned are the leaders over
the Developments. requiring, as they
see 1t. an entirely new financial policy.
that it was determined late this after-
noon TO lay the matter before Secre-
tary McAdoo at once and get his
views. For this purpose Chairman
simmons Of the Senate Finance Com
mt:ee and Chairman Sherley Of the
House Appropriations Committee will
confer with Mr.. McAdoo tomorrow.
Pussied Over Methods.
Meanwhile members of both houses.
who hao regarded $24.ooo. 900, 900 as
pretty sim sum to be raised are won
dering what new methods can be
adopted to raise in one year at least
s3o.Ooo, 100000. OF this gigantic total
large amount must go out of the
country in loans. in pay of the soldiers
IN France and ros supplies purchased
abroad.
Upon the question of whether the
productivity Of the country will be suf-
fcient to require the expenditures
called for varying views are held.
Chairman Simmons and Chairman
sherley were inclined to the view that
the enormous expenditures mapped out
would not be required because Amer
lea could not produce so much in one
year.
the other hand the whole programme of
the War Department is predicated upon
the theory that industrial America can
and will comply with its demands.
The suggestion Is being seriously made
a. the Capitol that the loans to the
Allies must be pared down. But THE
SUN correspondent has the hishes, au-
thority for saying that such plan
will not be considered at all by the
Administration. The loans will continue
at the rate at which they have been
goins--about $4,000. 100000 year.
Elements of the Problem.
The problem which the conference to-
morrow must work out has these ele-
ments contributing to- 1t:
The House has about finished the
revenue bill, designed to raise $s.200,-
100000 in . twelve month period IL
none OF the souI ces OF taxation tapped
is taken away.
Through the ban on the manufac-
ture OF Seer and near beer nearly
one-tentl~of this amount will be lost
In that period.
The War Department has demanded
more money with which to win the
war-s7,247.727,6o2.32. in addition to
the appropriations and authorizations
already approved.
After July OF next year more thEn
81 000, 100000 in revenue will be lost
through the effectiveness OF war time
prohibition.
Most OF the amount demanded by
The War Department must be in cash.
according to Gen. March, Chief of
staff
Practically the only sources OF tax
alton left open are consumption taxes
and a tax on sales.
That there can be no cutting down
OF the amount of money loaned TO the
Allies periodically.
That the productivity of the coun-
try probably cannot equal the con-
tsmplated expenditure OF $3o.00o,0 900
In year.
That thought must be given the
consideration that the people OF the
country and business must have suf-
hcient money left with which to buy
bonds.
That II is possible to spend sso.-
eo0.o00,ooo year and the, present
solicy Is followed $4,000. 900. 900 must
be raised In taxes and s:o.ooo,oQo
In bonds fset
EJECT Of Beer Dan.
The demand Of the War Department
for an additional sum totaIling moro
than sT.s47.ooo.ooo and the Executive
CostSDsed ss F0fh Peep,