New-York tribune., 1918-11-15
Wants Senate to Provide
$6,0oO,00O, 600 in 1919 and
$4,OOO,OOO, 900 in 1920
He Would Continue
Giving Aid to Allies
Estimates Next Years Elk.
penditures Will Be Less
ened by Peace Pact

WASHINGTON, Nov. ID (By The AS
sociated Press Revision Of the pend
ing revenue bill with a view to yield
ing S6,00O, 100000, payable during the
calendar year 1919, and not less than
$4,000 100000 the following year, was
recommended by Secretary McAdoo to-
night, in letter to Chairman Sim
mons of the Senate Finance Commit
tee, setting forth the Treasury's tinan-
cal programme for the reconstruction
period
The Secretary estimated that ex-
pendltures during the fiscal year end
ing next June 30 now would be $18 8,000,-
100000, instead of the s24,000,000 ,000
estimated before there were prospects
Of peace. He sfavored a continuation
Of the policy 6f lending to the Allies
for a limited time during reconstruct
ton, to enable them to purchase food
stuffs, raw materials and manufactured
products in this country.
Other recommendations we're:
That income and profits taxes be
payable In four equal quarterly instsl-
nents on March 10, June Is, September
5 and December Is.
That excess profits tax rates for pay
menus Que next year DS ilO NlSucL tildll
those in the existing law.
That necessary safeguards be pro-
vided for war and excess profits taxes
in the form of adequate provisions for
amortization, conservative valuation of
inventories and ascertainment of mini
mum income which shall be exempted
from the taX to insure the taxpayer
against injustice and avoidable injury.
That war and excess profits taxes be
eliminated entirely for payments due
IN 1920 except with respect to profits
on contracts negotiated during the war
period.
That corporation and individual in
cone tax rates be increased on incomes
OF 1919, payable in 1920
That the basis for next years taxes
payable in 1920 be determined now.
Urges Prompt Enactment
The Secretary also urged prompt en-
Actment of the pending bill He esti-
mated the revenue yield from the meas
ure as framed by the Senate Finance
Committee at $4,000 900 000 as COM
pared with the $4,000, 100000 provided
by the bill as passed by the House.
which, he dec ared. "is more stringent
than the changed situation will JUS
tify"
1.-THE existing law is not satisfactory
10 the country nor to the Treasury"
~ added.
Mr.. McAdoo did not refer to the fifth
,yar loan, which probably will be float
ed next spring, but his calculations in
dicated that the size of this might be
around $5,000,00O, 900, to make up the
difference between the six billions of
taxes, plus $6.866 900 900 gathered from
the fourth Liberty Loan, and the elgh-
teen billions of expenses.
The Senate Finance Rommittee to-
morrow will examine Mr.. McAdoo's pro
gramme and will consult him in person
late in the afternoon. Chairman Sim
mons, after studying Mr.. McAdoo's let
ter, said in the main he approved OF
the Secretarys recommendations. lie
added that they were along the lines
he and the Secretary had discussed al
repeated conferences.
After reporting that government ex
penses for Ju Y. August, September an'
October this year amounted to $3.50,
600 600, or 81 $50 100000 a month, Mr.
McAdoo wrote:
There seems every reason to an
ticipate large reduction in the gov
ornment's expenditures during the bal
ance Of tie fiscal year. How great tina
reduction will be it is impossible a
the moment to estimate.
ut seems reasonable to suppose tina
the decrease dn the governments ex
renses cannot be at very rapid rate
if wise policy of rNadjustment an
transfer of activities< rom u war to
peace basis is followed.
1.-THE United States will be the fortu
nate possessor of foodstutfs, raw ma
terial and manufactured products O
which Europe and the rest of the worl
are in dire need. Not all of the Allie
can fully repay US in gold, for som,
have little and others none to spare
nor in commodities, during the perio
of reconstruction, for some Of them will
not so soon be able to resume norma
activities, and the United States mus
be prepared to continue, therefore, t.
enable the governments of the Allies
or some OF them. to make purchases OF
credit.
ii shall promptly ask the Congress
tor authority to continue to establish
such credits and make loans within
reasonable limits to these govern
ments for purposes growing out of tn,
war.
1T is of the utmost Importance tha
such foreign loans should be hel,
down TO minimum and, as soon as |
may be, discontinued, and that ever
reasonable argument should be presse
upon the governments of the Allies I,
prepare themselves and their people 4
make payments for their exports from
me United States by imports into tn
United States-that is, iu effect. T.
make cash payments instead of nav
ment by credit. ''
This is not only the policy which i
actuated by proper desire to b