Evening Republican, Volume 21, Number 161, Rensselaer, Jasper County, 25 July 1917 — EARLY CALL FOR SECOND DRAFT [ARTICLE]

EARLY CALL FOR SECOND DRAFT

McADOO TELLS CONGRESS THAT $5,000,000,000 MUST BE RAISED FOR SECOND DRAFT. Washington, July 24.—Plans worked out in congress for raising war revenue were overturned today by announcement of forthcoming additional estimates for war expenditures aggregating more than $5,000,000,000, principally in anticipation of assembling a second army of 500,000 men under the selective draft. Secretary McAdoo at a special meeting of the senate finance committee revealed that the war department alone is preparing estimates to cover additional expenditures of nearly $5,000,000,000 and asked the committee to hold up the $1,670,000,000 war tax bill until the detailed estimates of all departments are submitted. The committee agreed to the request and pigeon-holed a report on the measure which it had planned to submit during the day. Then there will begin another revision of the war revenue measure resulting in an increase of the bill's gross tax levy by from $350,000,000 to $1,500,000,000. Further credits may also be authorized in the form of bonds or indebtedness certificates. Besides the additional sums needed for the American war program Secretary McAdoo told the senate committee that the $3,000,000,000 authorized for the loan to the allies probably will last only to October and about $2,000,000,000 for their further assistance would be needed. The secretary made no recommendation as to what part of the total should be raised by taxes and what part by bond issues or other credits. It was reported, however, that the treasury department would favor raising $1,000,000,000 more than had been planned in taxes, making the tax bill total $2,670,000,000. As to the tax sources to be tapped to meet this new estimate, the committee for the present is entirely at. sea. Mr. McAdoo’s announcement came entirely without warning and more than one committeeman exhimself as completely staggered by the size of the forthcoming estimate. The first disposition was to turn to new taxes on war excess profits and incomes.