The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-11-15
NJ ADO0 WANTS
AUTHORITY TO
EXTEND CREDIT
Would Revise Revenue
Tax Measure on Down
ward Tendency.
MONEY FOR EUROPE
Must Supply Funds to
Allies With Which
They May Purchase
Goods From Us.
MONEY FOR EUROPE

Washington, Nov. IL
Secretary of the Treasury Nc
Adoo, in a letter addressed to
Chairman Simmons, Of the sem
ate finance committee, and
Chairman Kitchin, of the ways
and means committee, made
public tonight. recommends a
downward revision Of the taxes
in the $4,000, 900, 600 war reve-
nue. bill until the total yield for
1919 will be not more than ST.
000, 100000. For 1920 he re-
commends a still further reduc-
ton to $4,000, 900, 900.
Mr.. McAdoo recommends
that the 80 per cent profits tax
be retained, and that the excess
profits rates be lowered until
they are the same as in the
existing law. Individual in
come rates, he says, should be
raised, hut provision should be
made for their payment in four
equal installments, the same
provision to apply also to the
war profits and excess profits
taxes.
It is recommended further
that the war profits and excess
profits taxes should end with
the 1919 collections. Continu-
ance of these taxes beyond an
other year, he points out, would
inflict an unnecessary burden
upon business and industry.
Needs Not So Heavy.
The bill as already altered by the
committee has been reduced to S.
$4,000. zoe. In suggesting additional
reductions. Secretary McAdoo points
out that the collapse OF the war makes
II unnecessary to raise the sum of
'
for the coming year. and that not
more than $4,000. 100000 will be re-
CURED
Loans to the European countries to
enable them to buy our foodstuffs Will
have to be continued for some time.
Secretary McAdoo says. and he will
shortly ask congress to authorize him
to make such credits to give the allies
a working capital during the period of
reconstruction.
The expenditures of the government
will have to be materially reduced in
Secretary McAdoo's opinion. although
II will be necessary to continue for
some time the pay of the army and
navy establishments
McAdoo's Recommendations.
Following are the secretary's recon-
mendations.
/. That the pending revenue bill
be revised with a view to yielding So
00o.60o, 900. payable during the call
endar year 1919, and not less than $4.-
600, 600. 900 during the calendar year.
1890.
2. That income and profits taxes
be payable in four equal quarterly in
stailments. beginning March fifteen in
each year.
8. That the excess prhfits tax-rates
in respect to taxes payable during the
the existing law.
4. The amelioration OF the provis-
ions with reference to the determine
ton of war and excess profits taxes
in respect to the revenue payable in
the year 1919. and the elimination of
those taxes in respect to revenue pay
able in 1890, except with respect to
contracts negotiated during the war
period.
S. That to compensate for any re-
duction OF revenue beyond the desired
amounts above indicated there should
he an increase In the corporation and
individual income tax levies.
In setting forth these recommends.
Itions, Secretary McAdoo says:
"In June, in preparing for a long
war and an increasing military pro-
gram. / estimated the expenditures for
the fiscal year ending June 80. 1919.
at $4,000. 100000. The expenditures
for the first four months Of the fiscal
year 1919, that is for the months of
July. August, September and October.
aggregated, according to the treasury
daily statement, $6.635,922,42SS2, or
within 1866. 900, 900 OF the amount
which l anticipated for that period.
The saving was apparent rather than
real--due 10 the fact that improved
arrangements which the treasury was
able to make for meeting the require
Inents or the armyAs sfisbarsiry of1fcers
abroad released funds, which had ac-
cumulated to their credit and made
them available for current expendi-
lures. and also due to certain other
adjustments. have little doubt.
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