The Sentinel=record., 1918-11-15
LOANS To the ALLIES
TO Be CONTINUED
Proposition is Also Advanced to Make
Income and Profits Taxes Payable
in Quarterly lnstalIments-Fft
Liberty Loan to Be Floated viii BE
About s5.ooo,ooo,ooo.

Was hington, Nov. i4.-Reyision OF
the pending revenue bill with a view
of yieldins $6,00O,000, 900 payable dur
l ing the calendar year 1919 aud not less
than s4,000,00O000 the following year
was recommended by Secretary Nc
Adco, in a letter to Chairman Sim
mons of the senate finance committee
setting forth The treasury's financial
program Tor the reconstruction period
The secretary estimated that eX-
penditures during the fiscal year end
ing next June 80, now would be SIS
000,000, 900 instead OF the $4,000
goo estimated before there were pros
rects of peace He declared for con-
tinuation Of the policy OF loaning 20
the allies fer limited time duriny re-
construction after peace. to enable
them to purchase foodstuffs, raw ma
terials and manufactured products
in this country,
Other recommendation werc
That income and profits taxes be
payable in four equal quarterly in
Istllments on March Is, june IS Sep
tember 10 and December Is.
That excess profits tax rates eoc
payments due next year be no higher
than those in the existing law.
That necessary safeguards be pro-
vided for war and excess profits taxes
in the form OF adequate provisions
for amortization, conservative valua-
tion OF inventories and as certainmelr
of minimum income which shall be
!exempten from the tax 10 insure the
tax payer against injustice and avoid
liable injury.
That war and excess pronts-taxes
be eliminated entirely for payments
due in 1920 except for pay yment to
profits on Contracts negotiated dur
ing the war period.
That corporation and individual tax
rates be iereased on incomes Of 1919,
payable in 1920
That the basis for next years taxes
payable in 1920 be determined now;
the secretary also urged prompt en-
actment of the pendiug bin. lie es-
timated tue revenue yield from the
measure as framed by the senate fl
nance committee At so,300,000,00 as
compared with the $4,000, 900 900 pro
vided by the bill as passed by the
house which he declared is more
stringent than the changed situation
will Justify"
THE existing law is aot satisfact-
| tory 10 the country. nor to the treas
ury," he added
Mr.. McAdoo did not refer 10 the
fifth war loan which probably will
be floated next spring, but his call
culations indicated that the size OF
this might be around $4,000. Q00, coo
to make UP the difference beween the
six billions OF taxes plus s6,S66, 1000, r.
900 gathered from the fourth Liberty
loan and the eighteen billions of ex-
penses.
The seuate finance committee 20
morrow win examine MT. AIcAd0o's
program. aud will examine him in
person when Ne appears before the
committee late i'll the afternoon.
Chairman Simmons, after studying
Mr. McAdoO's letter, said in the main
he approved OF the seeretary,s recon-
mendations. lie added that they were
alons the lines he and the secretary
had discussed at repeated conferences.
After reporting that government ex-
penses for July. August September
and October this year amounted to
900, ,000 900 or $l.650.000, 600 a month
Mr. MeAdoo in his letter said.
| There seems every reason 10 an
ticipate a large reduction in the GOV
ernment expenditures during the ball
anee of the fiscal year. How great
that reduction will be, ii IS impossible
at the moment to estimate. II seems
REASONABLE to suppose that the de-
crease In tie governments exnendi-
lures cannot be at very rapid rate.
il q wise policy Of reimbursement and