Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1918-01-28
UNCLE SAM MUST
RAISE TEN BILLION
That Sum Is Required to Meet OBJ
legations Now Incurred o..
Necessary to Incur.
MORE TAXATION IN SOME FORM
Plan Now Is to Provide 1t Until
June 80 Through Sale OF Bonds,
Treasury Certificates and War
Savings Stamps.
Especial to The Times Dispatch. ]

Especial TO The Times DiSpatch.l
WASHINGTON. January 27.-Bcfore
the end of tho fiscal year on Juno so,
the government must raise $4,000. 600
coo in order TO meet all obligations now.
incurred or necessary to incur during
the six months period. This statement
is made upon the authority Of the Sec
rotary of tho Treasury. who has con-
idcd il to members OF congressional
committees dealing with the railroad
legislation.
This is more money than has been
raised by the government during the
ten months since war was declared 1t
is almost twice as much money as was
raised by the first and second Liberty
bond sales. II is almost twice as much
actual currency as there is in tho coun-
try to-day. including every banknotc.
every Federal reserve note and every
piece OF gold. silver or copper which
has been coined into money.
y part OF the sl.0 O000no0o sum Will
be raised through ta8ation--nornal and
emergency. Eut Il, tho outside scarcely
moro than $4,000. O00, 600 will he Melted
through that means. inasmuch as
excess profits taxes Will he -ealized on
10 any cons dcrablc extent until after
June so. This means tina. the bulk of
the money required must he raised by
tho sale OF bonds. Treasury certificates
and war savings stamps.
Most OF the new Treasury certificates
which will be issued probably Will be
needed 10 retire the onc-yesr ccrtin-
cate issue authorized a. the beginning
of the war. And ii is now doubted IL
half Of the $1,000 100000 war savings
issue will he disposed OF by the end OF
the fiscal year. II fact. moo: calcula-
tons indicated that not more than
Sooo,ooo.o0o in actual money Will he re
ccircd by the government from these
stamps. since many OF the stamp pur-
chascrs arc investing in these securities
on month. to month basis.
LHERTr Bo>D ONLY So-RCE:
LEFT E0U RAISING HUGE SUN
This leaves the Liberty bond AS tho
only source from which the govern
mcnt may hope TO secure the 5000
100000 TO SS,oou.oq0.ooo needed to alb
Sorb tho deficit now IoreSccn hy the
Secretary OF tho Treasury. And il,
means that tho country must prcoarc
itself To subscribe to at least two more
bond issues before the fiscal wear
passes. The first or these will probably
be for minimum of $1,000. 600 600 and
a maximum OF $4,000, 001. 900 and is
scheduled 10 come about tho middle Of
February. The second Will probably
come early in June. the size or il to
ne determined; first. by the success Of
the irSt sale. and. second, by the state
oi the Treasury 1t that time.
Many serious questions have pre-
cntcd themselves To officials OF the
GoNcrnmc' I in conn Hciicu with those
roma issues. The mist important -
the matter or the future intcrcs, rate
I" be paid This problem has arisen
through causes beyond tho control Of
the government, IL is true, but causes
winch must be carefully considered in
til" further financing, of tho war.
FOR instance. Liberty loan per cen,
bonds ar" now selling below par and
have been almost from their issue. The
- pcr cents have held their own.
MICH on the surface. seems to H., an
anomalous situation. Eut tho reason
ne" ia the fact that tho less rcmuil-
'tatNe h"nd is nontaXab!c. whereas
tn tours are subject to income and
'N'"NS profits taxation. The small
holder OF Liberty bonds is not dis.
i"rh"d hH tho taxation feature. hui, the
large Institutions aud TIA individual
with Largo holdings has n5ured very
closely upon this circumstance, with
the result that the fours arc worth
Hss on the security market than are
tho three and 4 halls
+" what extent the government MAJ.
fAItTtt To sell future iSS;ucS of :. ,<n,,