South Bend news-times. (South Bend, Ind.) 1913-1938, 1918-05-10
M ADOO CALLS
FOR REVENUE
TO WAGE WAR
Congress May Continue Work
through Summer-Further
Bond Issues Probably
Necessary, Belief.

~ ASH y - lO-Ns EIdg 4V--CoIl-
ressiOnal leaders have been advised
b. Sec'y McAdoo that legislation at
this session Of congress Is impera-
tive TO have revenue 10 meet the
unexpected increases in expenses in
cident 10 the vast expansion Of the
nations war program.
a statement Of the cOuntry's finan-
cial situation. upon which the
amount Of additional taxes and
bonds needed may be calculated has
been prepared at the treasury for
submission within the next two or
three days TO the committees of the
senate and house.
May Postpone Adjournment.
Whether congress will undertake
at the present session upward re-
vision OF the war revenue law Of last
fall. leaders at the capital said to-
night. depends upon the impression
made by this statement II IL dem
onstrates that il is essential 10 act
now instead OF waiting until Decem-
Der. as planned, hope for adjourn
ment by July ] will go glimmvrins
and congress probably will be here
until fall
Sec'y McAdoo's belief that legis-
lation must be enacted at once was
expressed in a letter 70 Sen. Sim
mons Of North Carolina, chairman Of
the senate finance committee.
Give Heavy Estimates.
The unexpectedly heavy estimates
OF expenditures for the coming year
include the 5.OOO.OOO.OOO army
program, about $500, OO0, 600 for
the nav with further estimates ex-
pected and $3.50. 100000 for the
shipping board
Sen. simmons said tonight the
tacit agreement 10 defer further rev.
enue legislation until next December
was made before these new esti-
mates were submitted. The situa-
tion now, he said. is materially
changed, and will have 10 be con-
siderej IN the new light when Sec'y
McAdOos formal statement is pre-
scented.
Representative Kitchin of North
Carolina, democratic leader of the
house and chairman of the ways
and means committee, said he had
heard nothing about the treasury's
plans. but II additional taxes were
decided upon. the levy of the last
tax bill probably would be dOu-
bled. He estimates that $2,50O,UOO.-
600 in new taxes would be levied,
but other leaders placed the prob
able figure at from $1,000. 900. 900 to
S1,5OO,OOO. 900 making a total Of
around $1,000, 900, 900 based upon
the estimated returns of between
$4,000. 900. 600 and $4,000 ,0OO,O 900 on
the present law.
More Bond Issues.
Further bond issues also I'M
doubtedly will have TO be authorized
during the present session. accord
ing TO Sen. simmons. regardless of
when revenue legislation is enact
ed. The amount of the issues, how
ever. OF course. will depend upon the
decisions as to taxes.
Incomes and excess profits. both
Rep. Kitchin and Sen. simmons in
dicated. are regarded as the prin-
cipal source from which any reve-
nue. increase must come. The for
mer said both can be doubled. while
the latteus believes additional tax
burdens should be spread more gen.
orally over the population, more con-
sumption taxes are REGARDED a
strong probability.
Strong republican opposition TO
any general revenue legislation at
the present session of congress Is ex-
pected. Sens. Lodge of Massachu-
sets. and SmOOt OF Utah. republican
mem bers of the senate finance com
mittee, both stated today that Leg
islation is not necessary until next
December because no apprecia BILE
amount of additional revenue would
be received by the treasury much be-
fore the spring OF 1919. IL also was
pointed out that while appropriation
estimates and actual authorizations
for the fiscal year beginning July
are enormous. drafts upon the treas
Jury and actual expenditures prob
ably will not be large before the
beginning OF 1919.
Next Years Expenditures.
Estimated actual expenditures Of
next year OF about S23.OOO.OOO. 600