Evening journal., 1918-11-12
PEACE MAY AFFECT
new REVENUE BILL
McAdoo to Survey Govern
ment Needs With Econ
omy as Object
BOTH PARTIES
FAVOR THE CUT

WASHINGTON, Nov. i2.-Peace yes
terday threw into conference between
congressional leaders and treasury Of
ficials the question Of whether the tax
burden imposed in the pending revenue
bill can be lightened in view Of pros
pective reduction of expenditures.
Senator Simmons, chairman Of the
Senate Finance Committee; Chairman
Kitchin, of the House Ways and Means
Committee, and Secretary McAdo0 dis
cussed the problem, but reache a con-
elusion Mr.. McAdoo said he would
undertake an immediate survey OF the
Governments tentative program for re-
turn OF the army from abroad. for cur
failing war orders and other phases Of
war-to-peace conversion and make rec
concentrations within few days.
The uncertainty Of future Government
financial necessities and the urgent need
Of pushing the revenue legislation to
completion at an early date constitute
the principal reasons prompting many
congressional leaders, both Democrats
and Republicans today TO advocate that
the bill be not changed 10 reduce the
revenue 20 any great extent.
Already the Senate has revised II so
that the income is estimated at about
s6,250,000,0O0 instead Of the SS,0OO,0O0O00
provided by the House draft. Treasury
officials said that large inflow of taxes
will reduce the volume of war bonds
which must be floated in the spring.
Demand for immediate steps TO cut
down expeditures now is coming
strongly from both parties in Congress.
Borah and Smoot, Republicans,
in addresses in the Senate urged i'm
mediate curtailment of vast Govern
ment expenditures and said that Senator
Martin. the Democratic leader, would
have difficulty in carrying out his re-
Gently announced economy programs
unless the public Is informed on details
Of all expenditures.
Senator Martin VIII find there will
be 1000 reasons advanced for maintain
ing and extending existing bureaus"
said Senator BOrah. zone thing Con-
zress never has been able 10 do Is 10
ibolish an office or a department"
Senator Smoot said the time has come
or the Senate 30 point out how the
saving can be brought about He urged
curtailment of Washington
var bureaus, some of which, he said, |
nave as many as 10000 employees
Treasury officials said that expenses !
n about a billion and a half dollars
a month are expected 10 continue
through the winter. with another war
oan in the spring, and that millions
1f dollars TO be provided by the pend
ing revenue bill will be collected Just
The same next June
Loans 10 Allies will not be shut or at
onoe. but II the call FOR aid from those
governments continues many months it
will be under new program providing
FOR peace and reconstruction loans The
policy for assisting IN the !
OF the great task Of rebuilding |
sections Of Europe Is not yet |
formulated.
To stimulate the outpouring Of addi-
lonal billions In the spring for govern
lent bonds, officials are considering
ew directions for appeal. The term
Liberty Loan" may be dropped and
Victory Loan" peace Loan or 'Re-
uilding Loan" adopted. with a slogan
lch as Bring the boys home"
The governments financial agent in
any important reconstruction meas
res will be the War Finanp Corpora
on, whose powers Congress will short
I be asked 10 broaden 10 enable 10 10 +
ivance funds 10 enterprises essential
n peace, the industries converting
'om war TO normal production and pos
bly, even rebuilding ventures abroad