Evening journal., 1918-03-29
JUNE IS IS Dreaded
By MANUFACTURERS
Paying Of Excess-Proiits Tax
in Lump Said TO I'm.
peril Banks
M'ADOO AGAIN
UNDER FIRE IN HOUSE

WASHINGTON. March 2e.-Chsrglne
Secretary Of the Treasury McAdoo with
adopting & course In the collection OF
the excess-prolts tax that might clos
the financial system OF the country
representative Louis T. McFadden, OF
Canton, Pa. urged the Secretary yes
terday, In a speech in the House, to
make publ his reasons for opposing
the pending bill, which would author
lie the payment Of the excess-profts
TAX over period Of four months in
stead OF In a lump sum on June IS.
p. Otests from all sections from busi-
ness men were read into the reco d by
Mr.. McFadden He said II the Admin
lstrat on did not wish 10 support his
bill because he was a Republican ne
would work for a similar measure in
troduced In the Senate by Senator
Pomerene. Of Ohio Mr.. McFaIden
said:
"1he estimates now made are that
the collections ON the excess-pr onts
tax FOR this year will be s3,400.OOO,OO
Instead OF s2.7O0OOO.O00 as at FIRST
stat d. The financial resources Of this
country are not In a pos ton TO assume
this burden ID single day. The
Secretary has put on the market ST.
2oOWO,OOO in Treasury certificates and
Federal Rese We notes issued on the
st engih OF the rcdscOunting opera
ons OF these banks total Si,6OO,OO0.OO0
An enormous period OF financial in
nat.On has already taken place. and
now the proposal is that the financial
institutions OF this country, the cor
po az ons AMI the smaller business es-
Establishments lnd s3.4O0.OOO.OO0 more
To get IN S money the persons who
are 10 pay the exoess-pronts tax must
either go into the market or else
deplete their wo king cash
"As June IS approaches. every bank
will be overwhelmed with applications
for loans, and IL Is hardly possible
that every bOri over can be accOmmO-
dated Tile banks, under present con
ditions, are limited In the calls they
can answer.
The Trcasurery already has adopted
the system recommended In IN BIN in
the sale OF Liberty Bonds Purchas-
erS have been enabled 10 meet theie
obligations from time 10 time. but now
the proposal is reversed There is no
real necessity at IN time for a cat
influx Of money. The expenses Of the
Government today have dropped %
s40,OO0,00O daily The inflow OF reve-
nue. has been much greater than his.
and the United States Is unable to
spend the money as fast as It is com
ing in. yet the Secretary insists $780,
0O0O0O be turned n al once.
Il have q communication from the
Association Of Employers and Manu-
facturers OF New England, the biggest
business firms In that section An
urgent plea is made for speedy action
on this leg Station so that the period
OF uncertainty may be shortened The
Pennsylvania state Chamber OF Com
merce has made the same request. The
Cascade Foundry Company. Of Erie.
Pa asserts thai although It's profits
have b en- large, IL has been forced
20 put back a great deal Of this money
as working capital and 10 provide FOR
expansion As Is the case with many
others seeking relief, Il Is engaged
largely In The manufacture Of war
mater ais
Another protest from the Manufac-
turers' Association OF a big state says
the payments cannot be made all at
one tine without Gripping banks,
handlcspp'ng the Liberty Loan and
hampering the manufacture OF war
materials. All these men say that the
immense sum cannot be withdrawn
from the ordinary channels Of business
without having grave and harmful
effects"