The Washington herald., 1918-06-29
TAX PAYMENT
SLOWLY URGED
InstaIlment Plan Would
Help Government,
Says Holland.


Had not the government at wash
ington insisted that the taxes which
: were payable on June Is be paid in
bulk then New York City would
possibly have subscribed $500.000, eco
more than it did to the Third
Liberty Loan. That is the opin-
ion of some of the leading men
OF finance of the city. The cor
porations and the large taxpayers
would have been in position, had
II not been compulsory that the full
tax be paid June Is. TO make much
larger subscriptions to the liberty
loan than they felt that business
prudence in view OF tax require
ments justified. So It has been said
that had Secretary McAdoo so ad-
.vised or acted that it would have
been possible to pay a part of the
tax on June Is and another INSTALL
ment late in the summer or in the
early fall then far more funds would
have been available for the loan to
the government than was the case.
There is heard a great deal of
comment. not critical exactly but
suggestive. which refers to the pro-
position that the American banks
subscribe $750.O00,00O every two
weeks. receiving in return therefore
Treasury certificates which will bear
interest at the rate of AZ per cent.
The proposition as a whole is spo-
ken of very favorably. The belief Is
common that the American banks
will take up every month a $780,
10000 of these Treasury certif-
Gates until at least $4,000. 900. 900
have been in this way absorbed.
These certificates will be available
for the payment of subscriptions to
the Fourth Liberty Loan.
Suggests InstaIlment Plan.
II is also said that if it be the part
Of prudence and convenience to pre-
pare by the installment meth I'd for
payments fer the Fourth Liberty Loan
which will be offered late in the fall.
why may il not be equally feasible
ana eXpedient to provide that the very
Wy taxes which are to be assessed
Congress- has adopted the new
Iay also be paid in INSTALL
holds good in one case
Hnt loan of 5000. 900. 900
preliminary INSTALL
k-for that is what
= are-why will il
il the taxes may.
rization of law be
conveniently ar
to be some
which has
tudying the
less il is a
Who are in
re hesitat-
hts. That
at stocks
4. do not
but the
cable 20
litaI and
pOrat ations
count they
4 the form
said this
considerable
ntly able to
: are Won
ONE will be-
IT a wise step
amount of
ney in securi-
ecause they do
1t a demand will
-eir income by the
-ernal revenue after
mas been put on the
Until man of cap
Doraeion can learn pre-
he or il will be COM
lay in the form of taxes
ne present fiscal year ends
certain to be hesitation
making individual investment
and also about increasing the plant,
equipment or other facilities of the
corporation.
The Bond Holders.
This morning a man of large capi-
tai who is identified with two or
three Of the great industries. said,
pointing to his safe: Il have in
that safe 10000 in liberty loan bonds,
I should be glad to increase these
holdings at the time of the Fourth
Liberty Loan: in fact, to double
them IL possible. if / could only
know what my government tax es-
sessments are going to be and that
they will not make too heavy an
inroad on the earnings.
They may be so heavy that I shall
End it inexpedient to make a large
subscription for the Fourth Liberty
Loan. For that reason hope that
Congress will so act as not to make
too heavy inroads upon business or
upon incomes for il is automatic
that IL the government takes too
large an amount of money in the
form Of taxes it will find that there
Is great difficulty in securing sue
cessful popular subscription to the
next liberty loan"
Occasionally a slight criticism is
heard which relates to the time
fixed by Secretary McAdoo for Of
fering a Fourth Liberty Loan to the
people. Mr.. McAdoo's present inten-
tion is. so it is understood, to make
that Offering in October Rut Octo-