Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1918-09-20
GLADLY WELCOME
WAR GRANT CURB
Congress Halls McAdoO's
Pledge Not to Ask
= More Tax
NEW POLICY FORESEEN
Possible Change in Methods of
Raising Revenue-Bill Due
to Pass Today .
BY the United Press

Washington, Sept 20.
Congressional finance leaders today
we're greatly relieved by Secretary
McAdoos announcement that he will not
ask additional taxes in view Of the 81
oo0,00o.00o just asked for the army.
They declared, however. that his decision
means one of two things with respect to
the Governments finance policy:
First. Possible abandonment of the
policy of raising one-third of the cost
of the war by taxation and two
thirds bv bonds. ......
Second. Computation of estimates
submitted to Congress in future upon
the basis of money actually able to
needs.
The tangle into which the sudden
presentation of the new army estimates
threw Congress has revived among FL
nance and Ways and Means Committee
members the demands that departments
make estimates after regular appropria
ton bills have been passed showing
how much of the regular appropriation
has been spent and how much actually
can be spent within the year and then
be content with appropriations covering
the additional amount that actually
can be spent.
War Departments Dema nds Excessive
The War Department asked for more
than three billion dollars for ordnance
in the new bill. Finance Committee
members said today it would be physi.
cally impossible TO spend that money
inic fiscal year. because previous huge
ordnance appropriations have been used
|" letting contracts which will keep all
available factories iuiiIing to capacity
for long time.
Unless some development not now fore.
seen changes >the situation the most
probable course will be the pairing of the
army estimates 10 the>actual spendable
amount which will be made immedia ely
available, while the remainder will be
included in authority to make contracts
This will give the War Department
power actually to spend all 1t has asked
! for, but will defer somewhat the need
for actually providing the money.
Proves Value of Budget Plan
Senator Kenyon. Iowa. declared the
/ present situation is a strong argument
| for the budget system which Presiden,
! Wilson has advocated and which, Ken.
yon Is trying TO have Congress provide
Under such a SYSTEM" Kenyon said
departments would know how much
| they could spend in a given time, and
Congress would not be called on to ap.
rropriate money long in advance of the
time 1t can be used"
Exemption Of Liberty Bonds
Secretary McAdoo will confer today
with House and Senate conferees on the
bill exempting Liberty Bond interes,
from t1xes. He is eager to have it hur.
ried through. Assurance that the bonds
will be exempt will be factor in de.
termining the size of the new loan
II ii is necessary. on account of the
army estimates. to increase the issue, the
enactment Of the exemption bill at once
becomes more important.
With only two minor matters to be
adjusted in the new revenue bill, its
| passage by the House ~seem.d certain
/ today. The reading Of the bill has been
| finished, but the House has yet TO vots
on sections exempting soldiers income
! and making more favorable conditions
for Gil and gas producers.
The bill will pass unaltered from the
Ways and Means Committee draft In al
! it, important provisions.