The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1918-05-10
NJ ADOO PRESSES
CONGRESS TOLAY
HEAVIER TAXES
CONTINUED from First Page.l

result OF Secretary Bakers estimate
for War Department expenditures for
the year. He is asking approximately
sic. 900 OOO. OOO, 900, $4,000 900 more
than was anticipated for War Depart.
ment needs. and $4,000, 900 900 more
than the estimated expenditures for
the entire Government establishment
and all war activities.
Twenty-Seven billions Needed.
When Secretary McAdoo submitted
his annual report to the President
and to Congress, just a few months
ago, it was estimated that War De-
partment needs for the next fiscal
year would be a round $4,000 900 900,
and that all other expenditures would
aggregate $1,000, OOO, 900 for the year,
making a total of $4,000, 0OO. 600.
Now Secretary Baker alone asks S16,-
900, 900 900, the navy wants 81 $780,
10000. and the shipping board over
$4,000, 100000. Loans to the allies
at the present agreed rate will total
Sc. 00O0O0.O 900 and a little over, and
ordinary Government disbursements
81, 500, 0OO. 900.
This makes an aggregate OF S27.-
900 O00. 900, the most stupendous dis
bursement yet contemplated in the
history of the world.
As against this huge sum, the esti-
mated receipts OF the Government
under existing legislation are but
$5,1T6. 900, 900.
This leaves more than SOC. OOO, 900, :
900 to be raised by additional taxes
and by bond issues-loans to the
Government.
Il is the prevailing view in Con.
gress that the war taxes cannot be
more than daubled without serious
results. These war taxes will aggre-
gate on a most optimistic estimate
81 500 5000 II they are doubled this
will still leave $4,000. 900 900 to be
raised by Treasury loans, a stagger
ing sum, when II is considered that
in the three loans OF the last year the
Government raised but SO 500, O00, 900.
Treasury In Good shape.
But few weeks ago Secretary Nc
McAdoo was confident that there would
be no necessity for another Liberty
loan before the late fall or early,
winter. His view was based on the
first estimate OF probable expenditure
in 1919 OF an aggregate of $4,000
100000. The Treasury was comfort
ably situated. though it was expected
that il would have a balance in the
general fund OF but about a billion
dollars TO start the year. This was
suddenly changed when the estimates
were more than doubled.
The condition of the Treasury to-
day and the reasons why 1t will be-
a
a balance OF but a billion dollars, in
view of the Third Liberty loan. which
is just coming ia. ana Or the greatest
tax payments in history. is shown in
the following figures from official
sources:
At present there is a balance in the
general fund OF the Treasury OF but
$500. 100000. There will be received
from the third Liberty loan approx
mately S4.OOO,OOO 900. but OF thissum
81. 5O0.0OO.OOO has already been re-
ceived and spent through the issue
OF Treasury certificates OF indebted |
ness. which are accepted in payment |
on the bonds. Initial payments on !
bonds OF over 100000. 900 have also |
been received and spent. Discounting
this 500. 900. 900 against any excess |
Of S4.OOO. 900, 900 in the bond issue. |
there is left in round and conserva-
tive figures S2.5OO.O OO.O 900.
The Treasury Figures.
Between June Is and July l income |
and excess profits tax payments esti-
mated at $1,000. 1000. 900 are due. It is
believed by officials that the estimate
will be exceeded by half a billion. |
making 100000 900. or this |
amount. however. approximately ST.
700 OOO. 900 has already been received /
md spent through issue OF Treasury /
,ertihcates OF indebtedness. which are
as tax payments. the GER
ificates really providing for advance
ak payments. This leaves net |
Il SOC, 900. 900 from this source. Add |
ID to the $500. 100000 to come from
he loan. this gives $4,000. 600. 900.
Loans to the allies agreed upon for
Nay and June will take 1000, OOO. 900
II this. leaving $4,000. OO0.O 900. At the
present rate OF disbursement for war
md ordinary needs $4,000. 900 900
more will be used to meet these ex-
,endituTes between now and July /,
eaving 81 900. 900. 900 to start the new
iscal year with.
There are minor variations TO be
Flowed in these figures for fractions
II millions. for loan payments that
ire not due until after the end of the
iscal year, and for variation in the
ate OF war expenditures. These may +
educe the balance several hundred