Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1918-11-15


compared with the $4,000, ,00(
provided by the bill as passed by the
house, which he declared els more
stringent than the changed situation
win justify"
THE existing law is not satisfactory
to the country nor to the treasury" he
added.
Fifth War Loan.
Mr.. McAdoo did not refer to the
fifth war loan which probably will
be floated next spring. but his calcu-
! lations indicated this might be around
| $4,000, 100000 to make up the differ
ence between six billions of taxes plus
! $6,S66,00 900 gathered from the
Fourth Liberty Loan, and the eigh-
teen billions of expenses.
| The senate finance committee to-
morrow will examine Mr. McAdoo'f
program and viii examine him in per.
son when he appears before the com
| m ttee late in the afternoon. Chair
man Simmons, after studying Mr.. Nc.
| Adoo's letter. said in the main he APP
proved of the secretary's recommen-
dations, He added they were along
lines he and the secretary had dis
cussed at repeated conferences.
After reporting that government
expenses for July, August, September
and October. this year, amounted tt
$685., 100000 or ,650,0O0,0O0
month, Mr.. McAdoo's letter said:
There seems every reason to anti
cipate large reduction in the gov
ernments expenditures during the
balance of the fiscal year. How greal
that reduction viii be 1t is impossible
at the moment to estimate. 1t seems
reasonable to suppose that decrease
in government expenditures can MOI
be very rapid if a wise policy OF re-
adjustment and transfer of activities
from war to a peace basis is fol-
lowed.
THE United States will be the for.
tunate possessor of foodstuffs, raw
materials and manufactured products
of which Europe and the rest of the
world are in dire need. Not all of the
allies can fully pay us in gold, fol
some have little and others none tc
spare, nor in commodities during the
period of reconstruction, Ior some OF
them will not so soon be able to re.
sumo normal activities; and the Unit.
ed States must be prepared Ito con
tinue, therefore, to enable the gov.
them to make purchases on credit. ]
shall promptly ask the congress TO
authority to continue to establish such
credits and make loans within rea.
scnable limits to those government
for purposes growing out of the
war.
1T is of the utmost importance
that such foreign loans should be
hn1 to oi,,iY 4
as may be, discontinued and that ev-
cry reasonable argument should be
pressed upon the governments of the
allies to prepare themselves and their
people to make payment for their eX-
ports from the United States by i'm
ports into the United States; that is
in effect To make cash payment in
stead of payment by credit.
This is not only the policy which
is actuated by a proper desire to nc
helpful to the governments, which
with us have borne the burden of the
war and to their peoples, but is also
the policy of enlightened selfishness
1t is to be apprehended that the sud
den cessation of the extraordinary de-
mands on our industry and products, |
consequent upon the conclusion of the !
war, may result in sudden reduction
of prices and wages and even in I'M /!
If we are not prepared |
to continue to sell on credit to the ex- |
tent that may be necessary"
Taking up the pending revenue bill, [
the secretary explained his views as
follows;
Should Stimulate Business
THE excess profits tax rates appli-
cable to the calendar year'191S should
not be greater than those provided for
IN the existing law of October. 1917,