The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1918-11-16
GlFT Be L0EERED.
GOVERNMENTS s. NEEDS WILL
CONTINUE HEAVY MANY
YEARS. ~
Secretary of Treasury Says That Ad-
9 61itionaI Government Loans VIII be
Required.

Washington, -9op. 12.-Goyernnent
financial needs for many years are al
most certain to run about $4,000, ,000.-
: sSDs annually, treasury experts esti-
mite, and most OF the money will be
raised by taxation.
Consequently, students Of govern
mant fnarces think the taxes imposed
last year and paid In July probably
! VIII not be lightened materially by the
advent OF peace
Secretary McAdoo today warned
that taxes necessarily would be high
for many years to pay Off war debts
ana thAt additional government loans
wauId be required: He did not at
tempt to forecast how big the volume
! e& taxes would be. z: -. 80 80. y :. - :
Roughly, treasury officials and con-
gfeSSonal leaders in charge, Of reve-
nne. legislation figure this way:
:ss Ordinary g9yernment expenses.
whatH ran around a Billion dollars a
yAar besere the war, will now amouns
ts at least $4,000 ,0o0,s06 annually 70.
many gears, and for two or three
Years after the war may be double
that figure. If the si6,S50,000,0o0 OF
Hbsrty bonds already issued are in
cteAsed in volume by later loans to
$s5,0o8po0D ,0D0. the interest on thi:
sum would amount to about $1,000
o99, 900 a. year. IN addition, it prob
ably, will be the governments policS,
To establish a. sinking fund to pay Oft
the bonds at maturity, and this would
esquire about sI.25D, 100000 year.
These are items which make an ag-
gfagate near s4,a5e,0oo.ooo.
TO offset this there would be nearly
g. half billion dollars coming in an
nGa1ly from the allies as interest on
their loans, which now amount tc
$7.000, ,eo8, 200, and are likely to run
much higher. and revenue from Gus
toms and miscellaneous sources which
last year amounted to about $780,
0o0, GOO.
With allowances for wide variations
in these calculations there would Still.
remain about three and q half bill
lion doIlara to be raised from inter
nal revenue taxes. Last year $3,e43,-
gee, 900 came from internal revenue
including s2,775. 200, ,0oe from income
and excess profits taxes This year
these figures viii probably more than
be doubled. Factors which makes
the system OF estimates highly tenta-
tive, officials point out, are that the
war is not definitely over SO far as ex-
pense is concerned, and that war
debts, both of the. American govern
ment to the public and Of the allied
governments to the United States
cannot be figured until then. Re
construction policies, yet to be for
mulated, will have much to do with
determining how many existing gov
ernment wartime agencies shall be
continued. Besides, on the condition
of business and foreign trade after
the war must depend the weight Of
the tax burden which can be borne.
Methods of applying taxes after the
war also are receiving attention L
the schedule of income taxes now be-
ing framed in the new revenue bill
works out we'll it is considered proba-
BILE that the bulk Of the after-the-
war revenue will come from income
levies, which next year will YIELD
probably $2,S00,000. Excess profits
taxes probably would automatically
be abandoned after the war, and L
quor revenue will stop if the cor
,templated prohibition amendment IS
ratified, and sooner with the passage
Of the war time prohibition Dill. II
is almost certain that the multitude ,
Of minor taxes now levied on trans
portation, insurance, admissions. club
due, the excise taxes, stamp taxes
and special taxes on certain bus
inesses, now yielding comparatively
little revenue and very difficult of ad-
ministration will be abandoned. To-
bacco and estate taxes probably will
remain, it is said. Whether tariff
schedules will be raised materially
depends on future formulation Of
policy.