Evening journal., 1918-09-19
M'ADOO Warns
AGAINST TAXES
Thinks $4,000, 900, 1000 is
Enough Burden on
Nation This Year
LIBERTY LOAN Is
HIS CHIEF THOUGHT
BY The United Press.

BY the United Press.
WASHINGTON. sept. i9.-Secretary Of
the Treasury McAdoo today put the
quetus on fears that the nation must
bear a greater burden than ss,0oo,OcO,-
600 for the year 10 carry on the war.
In an oillcial announcement issued as
Congressional leaders were floundering
in confusion as 10 how best 10 meet the
added $1,000 100000 demanded this week
by the War Department. McAdoo de-
clared. 1T would be unwise to get fur
ther into taxation at the present time.
Conditions might develop in the fu-
ture." he added, "will determine the
question Of further increases IN taxa
ton. For the present fiscal year II IS
our plain duty 10 ask for ss.OooocooVo
in taxes.
McAdoo probably will announce the
amount OF the Fourth Liberty Loan this
week Final determination OF the
amount may be made before Congress
disposes Of the pending bill TO extend
tax exemptions on Liberty Bonds.
After a conference today with his
treasury advisers. Secretary McAdoo
said he would ask Congressional lead
ers for advance assurances concerning
the tax exemption feature.
The amount Of the fourth issue Is ex-
pected to be In the neighborhooi Of
s6.O00OO00O0. The interest rate will be
"a per cent.
Small amounts OF bonds Of the fourth
loan will he in the hands OF the district
committee on the opening day OF the
loan The Bureau OF Engraging and
Printing Is ready 10 begin turning out
finished bonds within an hour after
decision the terms Is reached.
Rep. Sherley, chairman Of the House
Appropriation Committee, believes u
will be necessary 10 add s20000oO000
in taxes TO the ss,00O.0000O0 war tax
bill now pending n the necessary reve-
nue. is 10 be provided.
But the task Of getting s2,0O0,0O0.Ooo
more in taxes out Of the country, In ad-
dition 10 floating six or eight billions in
Liberty Bonds this year looks well
night insurmountable 10 the finance
leaders, unless they hit business even
harder than the rates imposed in the
war and excess profits and income tax
schedules now proposed TO hit II.
One alternative is 10 20 into new fields
Of taxation. This admittedly means
imposition Of consumption taxes on the
people generally 10 an extent not here
tofore considered.
That. II is feared, might hurt the Lib
erty Loan. The problem thus becomes
one Of getting the maximum amount OF
revenue out Of both taxes ana later on
without impairing the country's ability
TO absorb the loans and pay the taxes.
As a result. Congress wants to be con-
vinced Of the War Departments abil-
ity 10 spend all the vast sums appro-
priated for it and the additional funds
now asked
.AIcAdoo's statement today reafilrms
the position he took before the House
Ways and Means committee. when he
said that as the program was outlined
three loans would be necessary to raise
funds sufficient 10 meet the outlay.
Treasury officials, however. today
were speculating on the probability of
there being four loans this fiscal year.
II was hinted today that the size Of
the coming loan might approach 81
100000. This. however. was not OH /
cislly discussed by high treasury ohi- |
cials.
But unless the German government Is I
crushed before the predicted time, the
nation must certainly prepare itself to /
take care Of four loans in fourteen
months. IL was stated semi-ofilcially.