New-York tribune., 1918-02-01
McAdoo Sees Leaders and
Arranges for Measures
Introduction
Increased Taxes Near
Laws Providing Bonds to Meet
1919 Needs Are
Planned

WASHINGTON, Jan. 31.-Steps to-
ward vast financial operations for the
war were planned to-day at confer
ences between Secretary McAdoo and
leaders in Congress.
Next Monday, it was agreed, the Ad-
ministration bill TO create war
finance corporation with $500, 100000
capital and authority 10 issue $4,000
100000 in short term notes to finance
private industrial operations will be
introduced simultaneously in the Sem
ate and House.
For the governments own finances,
Senator Simmons, chairman of the
Senate Finance Committee, announced
after comforting with Secretary Nc
Adoo that work probably would be-
gin about March is or April on war
tax legislation; first tc perfect the
present law. and second. to provide
both by additional bonds and IN
creased taxes for the governments
needs in the fiscal year of 1919.
McAdoo Meets Leaders
Secretary McAdoo went to the Capt
tol TO discuss many phases of the war
financial situation, meeting Democra-
TIC Leader Martin of the Senate. SEN
ator Simmons and Chairman Owen Of
the Senate Banking and Currency
committees.
Besides arranging for launching in
Congress Monday of the war finance
corporation BILL which will be intro
duced by Senator Simmons in the Sem
ate and in the House by Democratic
Leader kitchin, chairman of the Ways
and Means Committee. Mr.. McAdoo
urged prompt action on that measure,
and on the Administration railroad
bill lie also gave the Congressional
leaders information regarding the gov
ernment's financial situation.
Data Not Available Now
The Secretary advised Senator SIM
mons that it would be impossible be-
fore March CT April to present any re-
liable data regarding future Federal
needs, largely because it will not be
known before then how much of the
war appropriations Congress has au-
thorized will be unexpended. Also by
that time it is hoped to have more
accurate estimate of returns under the
new war tax bill.
The revenue legislation undoubt-
cdly viii be brought ont during the
present session of Congress- Mr.. Sim
mons said tonight. at probably will
deal with three principal subjects
the amount OF bonds, increased taxes
and perfection of some features of the
present war tax law"
Bigger Taxes in 1919
Senator Simmons said he did not be-
leve the legislation would affect bond
or tax levies for the year 1918, but
only for 1919
There is no question, from the
present outlook said Mr. Simmons,
that taxes for 1919 will be increased
not enormously, but probably by in
creasing levies Of the present war tax
bill, with the addition possibly of some
new and comparatively minor items"
Action on the revenue legislation
during the present session of Congress
is regarded as essential because Of the
difficulty of getting it through the next
, session, which expires by limitation in
March. Senator Simmons suggested.
too, that action this year on taxation
legislation for 1919 would give business
chance to foresee conditions and ad-
just itself to them.
Despite agitation oy business inter-
ests for radical changes in the excess
profits taxes, and by other interests for
revision OF individual income tax
levies, as we'll as certainty OF efforts in
Congress to change the many tax rates,
Senator Simmons believes the revenue
Legislation can be concluded without
the long delay of the last session. a
general plan having been outlined un-
der the present law. with increa sed
compreh ension Of difficulties.