The Birmingham age-herald., 1918-11-15
REVISION OF REVENUE
 BILL IS RECOMMENDED BY SECRETARY M'ADOO
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ed that the size of this might be around S5. .OOO, ,O00 GOO to make up the difference between the s6,Oo0,0 100000 of taxes, plus SC, ,S66, ,000, ,000 gathered from the fourth Liberty Loan, and the $1s,OO0, ,00o,0oO of ex- penses.
 The Senate finance committee tomorrow will examine MT McAdoo's programme and will examine him in person when he appears before the committee late Tn the afternoon. Chairman Simmons, aft er studying MT. McAdoo's letter, said that in the main he approved the sec retary's recommendations. He added that they were along the lines he and the secretary had discussed.
 After reporting that government ex- penses for July, August, September and October this year. amounted to S66So,- 0O0, ,COO or $1,65O0O0,000 q month, MT. Me Adoo in his letter said:
 'There seems every reason to antici- pate a large reduction in the govern ment expenditures during the balance of the fiscal year. How great that reduc- ton will be, it is impossible at the mo- mont to estimate It seems reasonable to suppose that the decrease in the gov ernment's expenditures cannot be at very rapid rate, if wise policy of re- adjustment and transfer of activities from war to 8 peace basis is followed.
 U. S. FORTUNATE
 ''The United States will be the for tunate possessor of foodstuffs, raw ma terials 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 others none to spare; nor in commodities during the period of recon struction, for some of them will not so soon be able to resume normal activi- |. pared to continue, therefore, to enable the governmentsl of the allies, or some of them, to make purchases on credit. shall promptly ask the Congress for authority to continue to establish such credits and make loans within reason able limits to these governments for pur- poses growing out of the war.
 Tt Is of the utmost importance that such foreign loans should be held down to a minimum and as soon as may be, discontinued. and that every reasonable argument should be pressed upon the governments of the allies to prepare themselves and their people to make pay- ments for their exports from the United States by imports into the United States; that is, in effect, to make cash payment Instead of payment by credit
 This is not only the policy which is actuated by a proper desire to be help lui u tiic NIllCls Wltn uo' have borne the burden of the war, and to their peoples. but is also the policy of enlightened selfshness. It is to be apprehended that the sudden cessation of the extraordinary demands upon our in- dustry and products, consequent upon the conclusion of the war, may result in sud den reduction of prices and wages and even in unemployment, if we are not pre- pared to continue to sell on credit to the extent that may be necessary" EXPLAINS VIEWS
 Taking up the pending revenue bill, the secretary explained his views as fol- lows:
 The excess profits tax rates applicable to the calendar year, 1918, should not be greater than those provided for in the existing law of October, 1917, and should be payable only in; those cases where such excess, profits tax would yield larger return than the proposed war profits tax. The 80 per cent war profit tax applicable to the calendar year 1918 should be retained Contracts have been made during past months in the expectation of heavy war profits tax. ..:Ev veryone is agreed that war profits should be taxed. They must be taxed 1t is time to look ahead to the fu- i ture of American business and industry. Our tax measures should be 30 devised as to encourage and stimulate, rather than to burden and repress them I. therefores recommend the immediate