The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-11-15

consideration and the changes made and
In prospect In tho revenue dill sas u
pfsSsd the House the measure would
raise about t6.s0o, 10000 From this
bill taxes could be eliminated which
would bring II down to the right figure,
he indicated.
The elimination OF all war profit and
excess profits taxes after collections are
made for the calendar year 1918 10
urged by Mr.. McAdoo as a spur to busi-.
ness throughout tho country. After as
serting that tax measures should en-
courage rather than stifie and suppress
business Mr.. McAdoo wrote: d"
IL can think OF nothing which would
do moro to encourage industry and
enterprise than this measure teliminat-
ing the profit taxes). carrying with u
as It would the assurance, that with the
cessation of war there will come cessa-
ton Of taxes on so-called war profits
and war excess profits"
In urging that after next year the
tax receipts need not be more than
81, 900, o0o, 900. the Secretary Emphasized
the fact that II Is impossible to fore
cast altogether accurately what the
peace time revenue needas will be.
The prediction nj THE Sun yesterday
that the Treasury Department would re-
sort to short term notes maturing In
year or two to aid In tiding the Gov
eminent over the transition period from
a war to peace footing was Justified
in Mr.. McAdoos letter tonight.
New Legislation IL Urgent.
Mr.. McAdoo's letter follows:
.-The COLLAPSE Of cur enemies necessf.
tates instant consideration Of the flnan-
ciai problems before the Government.
the most Immediate Of which Ia that
presented by the new revenue pill now
before the Finance 'Comnittee' or the
Senate. The. prompt enactment OF
revenue bill II imperative. The existing
law Ii not satisfactory to the country
nor 70 the Treasury: On the other hand
| the revenue bill which passed the House
IL more stringent than the changed sit
uation will Justify.
"In June in preparing for q long wal
and an increasing military programme
I estimated the expenditures for the is
| cal year ending June 80, 1919, at s24,'
| 600, 100000. The expenditures for thu
| first four months of the fiscal year 1919
! that Is for the months OF July. August
September ana October. aggregated. ac
cordins TO the Treasury daily statement
Ss,ssS.s22.423. or within Sse5, 900 o.
the amount which ] anticipated fol-
that period.
""rhe saving was apparent rather thar
real, due to the fact that the improyet
arrangements which the Treasury wal
able to make for meeting the require
ments Of the armies disbursing officer,
abroad released funds which had accu
mulated to their credit and made then
available for current expenditures. ans
also due to certain other adjustments
I have little doubt therefore that hat
1.-the war continued the expenditure
would have reached the amount est
mated.
Nov. however. there seems every rea
son to anticipate large reduction In tn,
Governments expenditures during tn,
balance Of the fiscal year. How grea
that reduction will be II 10 impossible a
the moment to estimate. Existing con
tracts will no doubt be iiquidated to 1
considerable extent That process o
liquidation might actually result for
time in acceleration Of demands on tn
Treasury rather than retardation.
The pay Of the army and navy ant
the expenditures In salaries and wage
OF the war establishments must continu,
without material change for months u
como It seems reasonable to suppos.
that the decrease in the Government
expenditures cannot DO at a very rapi,
rate II a wise policy of readjustmen
and transfer of activities from q war u
q peace basis 10 followed. egg.
Our Allies Will Need Credit.
The United States will be the for
tunate possessor of foodstuffs. raw ma
terials and manufactured products o
which Europe and the rest of the worl'
are In dire need Not all of the Allie
can fully pay US in gold. for come hav
little and others none to spare: nor II
commodities during the period of recon
struction. for some OF them will not 81
soon be able to resume normal activities
''The United States must be prepare,
TO continue therefore to enable the Gov
ernments of the Allies. or some OF them
TO make purchases on credit shall
promptly ask the Congress for authorit!
TO continue to establish such credits an,
make loans within reasonable limits 4
these Governments for purposes growing
out Of the war.
at Is OF the utmost importance tina
such foreign loans should be held dow
TO a minimum and as soon as may b
discontinued and that every REASONABLY
argument should be pressed upon tn
Governments OF the Allies to prepar
themselves and their people 20 max
payment for their exports from tn
4 United States by imports into the Unite'
States: that Is, in effect. TO make casl
reyment instead OF payment by cred.,
FOR tho period OF reconstruction. how
ever. some Of the Allies must have work
ing capital IN the form Of credits 4
enable them 10 pay for the import
without which they cannot place them
selves and their industries on q peac
basis.
This is not only the policy which 4