The Tacoma times. [volume] (Tacoma, Wash.) 1903-1949, 1942-11-20
TRADE.
WINDS
ssnkers and Brokers' TO
Help Sci Wsr Bonds
Sc, ooo, 600, 900 Deal
Set For December
Msnpower Shortage Hits
Revenue Department
Revenues From Whiskey
60 Up. Then Down
BY LOU SCHNEIDER

By LOU SCHNEIDER
The treasury departments new
and broader borrowing campaign
that gets started Monday. Novem-
Der 80, will be on an unprece-
dented scale with the accent
chiefly on selling government Sc
curities to the public rather than
to commercial banks. The financ-
ing program for December win
run to the tune Of around ss,oo0.-
o0o. 900 or almost double that Of
previous months.
To assure success Of this extra
ordinary bond sales drive the
treasury department will have the
cooperation of all organizations in
the banking. investment and brok-
craze industries. Not only that,
more than 5000 seasoned bond
men are prepared to show Uncle
Sam how securities can be sold.
The drive will be successful with
such aid.
President Roosevelt has already
begun study of the 1854 federal
budget. Conferences have and are
being held with Budget Director
smith and his Deputy Wayne Coy.
And q pretty messy problem 1t Is
too. It will be the largest IN his
tory.
The war budget to be submitted
10 congress early in January viii
ask for more than 100000, ooo.-
600. The army alone has its bid
in for s1oa, ooo, 100000! OF course
It's out of line when one considers
the needs of the navy. Maritime
commission and other government
bureaus.
The administration continues It's
drive to prevent initiation and TINS
is expected to be accomplished VIA
additional taxation. The 1912 rev.
.nue act is estimated to raise
about Ss4. ooo, 900. Latest Informal
tive advices are that the pending
1a4s revenue act will call for a
total tax collection Of fifty Dill
lion dollars!
Here's how the added $4,000
600 600 is to be taken In by Uncle
Sam: A combination sales tax
and enforced savings on top Of the
1912 rates but the five per cent
victory tax viii be dropped.
For the forced savings you will re-
ceiye stamps or bonds that VIII not
be cashable till the war is over.
Here is an idea Of how rapidly
the costs of war are piling up on
Uncle Sam and why he must 90
vast amounts of new financing 10
meet near-term maturities in aa-
dition to funds required 10 pay INC
expanding costs of war.
Direct obligations in the nanos
Of the public win mature WITHIN
the next twelve months run 10 the
tune of 1s,s6s, $4,000 on treasury
notes certificates Of Indebtedness
ana non-interest-be bearing discount
bills compared with only s2'zee'-
ore, 900 a year ago.
The department Of internal rev
enue now knows what manpo"en
shortage means. More than z,ooo
of its employees have gone mt. no
the armed forces. Under the ls4<
revenue act, which takes in many
millions more of payers than here
tofore. about $500 new workers
must be added to the force. Prod
lem il from where and how 70 se'
them.
II IL were not for the fact tna'
insurance companies are acceP'ihs
profits" via the sale OF hrse
blocks of municipal bonds. to use
the funds for war bond buying, M
yestment firms that deal IN sucn
securities might Just as wei CLUES
their doors.
The one bright spot of the mu.
nicipal bond market today is lha'
there is an investor demand ioi
such issues. But that viii noio
good only until the government
finds a way to tax incomes OF su'i
Issues.
Caution is being used by N
yestors making commitments. ~
no secret that tire and gas re
strictions will sharply reduce mu'
nicipal revenues from such souiees
Registration automobile tax cor
lections next year are expee'eo y
be the lowest in years.
Strange as it may SEEM som
$4,000 individuals hit by IN
$4,000 annual salary limit con
suited legal minds. The answer
Just an opinions that the un,.e'
States supreme court would nm
the law unconstitutional But DC
cause of probable public angef. =
big-name individual dares s'A
action in any court
Whisky was always a source :
federal revenue. Remember "hei
President George Washington -
to call out the troops TO crush IN
famous Whisky Rebellion =
western Pennsyivania? And ~nel
the whisky tax was boosted iron
20 cents to 81 gallon oui H.'
Civil war years bootleggng VIC
widespread? In World war
days the tax was lifted from al
to $500 q gallon. Soon sfter %