Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1920-03-09
WAR TAXES MUST
BE CONTINUED
SAYBOTHPARTIES

! WASHINGTON, March S.-War
taxes must becontin d, Republican
and Democratic leaders in the house,
in charge of revenue legislation, de-
clared today. No reduction can be
made by congress this year they as
serted.
Republican Leader Mondell and
Democratic Leader Kitchen, the
Trainer of the present tax laws,
joined in stating that the proposal
Of former Secretary of the Treas
ury McAdoo for billion-dollar re-
duction in taxes and the dotation of
a large bond issue to make up for
the loss. in revenue is impossible at
this time and would imperi1. the
whole financial structure of the ma
! ton. The high taxes must be COM
stiAued to meet a war overhang of
three billions in floating indebted
ness, both believe.
A panic, rather than relief, would
follow such action, Mr.. Mondell said,
while Mr.. Kitchin believes it would
be "the most unwise step that the
government could take at this time"
Even with drastic cuts in govern
ment spending it will be difficult to
make revenues equal expenditures
during the next fiscal year, it was
pointed out
New Bonds at 6 Fer Cent
Both leaders stated that it was
the opinion of treasury department
officials that another bond issue such
as Mr.. McAdoo suggests would have
to bear an interest rate of 6 per
cent, which would force the market
value of outstanding Liberty Bonds
down to such a figure that the 20,-
100000 bond holders among the
American people would lose hun
dreds of millions if forced to sell
their securities. Credit would be
further inflated and the cost Of liv-
ing increased. they hold.
Present indications are that none
Of the war taxes will be repealed at
this session of congress, although
the house has passed measures to
abandon some of the consumption
levies, such as tho~e on soft drinks
and clothing. The income and ex-
cess profits taxes will not be chang
ed until after the campaign, Mr..
| Kitchin predicted.
The Democratic leader sharply
| criticized Mr.. McAdoo for his appeal
for reduced taxes, declaring his
statement was for purely political
| purposes" He expressed belief that
the former secretary knows a reduc-
| ton is impossible with governmental
expenditures at the present high
| level.
las to the bond ISSUE" he said,
former Secretary Glass, Secretary
Houston, Assistant Secretary Lef-
| ttngwen and Governor Harding. Of
| the federal reserve board, all have
| told US that such action is fraught
with grave financial results at this
| time"
McAdoo Is Blamed
Secretary McAdoo," Mr.. Mondel
said, lis, more than any other man,
responsible for the present situa-
ton, for if he, while in office, had
not insisted on a heavy reduction of
/ federal revenue for the calendar
1919, while the administration was
still running things at a war level.
we could now be discussing a reduc-
ton of taxes.
Before there can be any reduc-
ton Of taxes there must be a reduc-
ton of expenditures and it is to-
ward that end that congress is now
working. The present administra-
ton is demanding appropriations far
In excess of the estimated revenues,
but this congress hopes to cut down
the expenditures asked for the next
fiscal year at least $3.50, 900, 900 or