Saturday news. (Watertown, S.D.) 19??-19??, 1918-11-14
four BILLIONS
ANNUAL NEEDS
OFG0VERNNENT
Secretary MeAdoo Warns Public
That Taxes Wal Neeessar-
lily Be High.
INCOMES LEWEs TO PREVAIL
Five Hundred Millions Due in In
terest From the Allied
Governments.
INCOMES LEVIEs TO PREVAIL

Washington, ID. c., Nov, 14.-Govern.
ment financial needs for many wears
are almost certain to run above Sd .O00.-
00o, 900 annually, treasury experts esti-
mate, and most of the money will be
raised by taxation. Consequently stu
dents of government finances think the
x imposed last year and paid in
June probably will not be lightened and
materially by the advent of peace.
Secretary McAdoo today warned that
taxes necessarily would be high for
many years to wear off war debts. and
that additional government loans would
be required.
Roughly, treasury officials and con-
gressional leaders, in charge of revenue
legislation figure this way:
Ordinary government
which ran around 81, 200, 000, 600 a year
before the war, now will amount to at
least 2 1000. 000, 900 annually for many
years, n for two or three years after
the war may be double thai figure. If
the SIG, $50, 600, 900 of Liberty bonds al
ready issued are increasedsin volume b
later loans to $25, 0o0, 900. 900 the in
about $1,000,00o.000 a year. In addition
interest on this sum would amount to
it probably will be the governments
policy to establish a sinking fund to
pay off the bonds at maturity, and this
would require about 81, ESQ, 600, 900 a
year. These three items would make
an aggregate near $4,,250, 900 900.
Interest from Allies
$500, 000, 900 coming in annually from
the allies as interest on their loans.
which now amount to $1,000, 000, 600
and are likely to run much higher; and
revenue from customs and miscellan-
eous sources, which last year mount
I'd to about $3.50, goo, 900.
WithssalloWaneessfor wide variations
in these calculations there would still
remain about $780, 600, 900 to be raised
from Internal revenue taxes. Last year
So, 643 900 900 came from internal re-
Venue, including $2,775 ,000, 700 from in
come and excess profit taxes. This
year these figures probably will be
more than doubled.
Factors which make this system of
estimates highly tentative officials
point out, are that the war is not yet
definitely over, so far as expense is
concerned, and that war debts, both of
the American government to the pub
lie and of the allied governments TO the
United States, cannot be figured until
then.
Income Levies to Prevail
The methods of applying taxes after
the wal also are receiving attention.
II the schedule of income taxes now
being framed in the new revenue bill
works out wellrit is considered probable
that the bulk of after the wal revenue
will come from income levies, which
next year will yield probably $2,3O0,
900, 900. Excess profits taxes probably
would automatically be abandoned at
ter the war, and liquor revenue will
stop if the constitutional prohibition
the passage of the wal, time prohibition
amendment is ratified, and sooner with
bill. 1t is almost certain that the null
titude Of minor taxes now levied on
transportation, insurance, admissions,
club dues and special taxes on certain
businesses now yielding comparatively
little revenue and very difficult Of ad-
ministration will be- abandoned. To-
bacco and estate taxes probably VIII
remain, 1T is said.