Virginia Argus. [volume] (Richmond, Va.) 1796-1816, 1809-12-15
10 500 600
8 600

three millions of dollars, a loan will be nc
cessary 20 make up the deficiency. That
state of the Treasury had been anticipated !;
and for that reason an increase of duties
haf been respectfully submitted in the last
annual report. But should that measure DE
now adopted, it would not, on account of the
terms of credit allowed for tue payment of
duties, supercede the necessity oil a loan for
the service of the year 1910, commensu-
rate with the extent at those establishments
and with the appropriations which my be
made for their support by Congress. No
precise sqm is suggested, since th must
vary according tn the plans which may be
adopted in relation to foreign nations, and
viii! particularly depend OF the decision of
Congress on the question of war or peace
Il is sufficient to state that if the actual
expenditure of the year 1910 for all MILL.
tary and naval purposes should be estlml-
ted al the same sum. which was discussed
by the Treasury tor those objects during
the year ending on the 3Oth September,
1909, and: exceeding as aOove stated SIX
million of dollars, the deic encY according
to the preceding estimates would amount
20 three millions on which supposItion, 1t
would seem prudent, in order to provide
against aay deficiency in the receipts De.
You'd what has been estimated, to auIhoriss
loan Of fodr niiilious of dollars.
In the event of war the necessity Of rem
derng IL efficient aud of calling for that
purpose in action all the resources of the
cou TRY, is too obvious to require any com.
ment. On that subject Hothing viii at this
time be added by this department to the
suggestions respectfully submitted in the
two precedlng annual reports. Loans re-.
imbursable by instruments and at fixed Pc.
e. -. -
stitute The principal resource for defraying
the extraordinary expenses of the war. For
the support of puohc credit, the basis on
which rests the practic ability OF OBTAINING
loans on reasonable terms, it appears ne
cessary that the revenue should IN the mean
while be equal 10 the interest on tae pub
lie deDt including that on the new loans, &
10 all the current expenses of government
calculated on a peace establishment, or,
for the present, to abj0t 9 mil ons OF del.
lars. An Immediate and Considerable en-.
grease OF the existing duties viii, il Is be
eiieVed, be requisite tor that purpose In orr
der to cover the defalcatiOn which MARI
ume war must necessarily produce in a re-
venue almost exclusively depending on com
merCe. That encrease appears prelE rable
IN the present situation OF the u. S ates 10
any other source Of taxation, and IS not IN
timE ct war, liable 70 the objection OF its en-
euuragiog smuggling. 1t is only IN the e.
vent OF Chat revenue being still more afec,
tCd by var than Is apprehended, thar a
resort to Internal taxes either direct or In /.
direct may become necessary.
J, war should not be resorted to, IL does
not appear requisite unless Congress should
resolve On permanent encrease Of the MI
hlaiy and naval establishments IA time OF
pcsCe, 10 lay at present any additional du T.
ties, syOnd a mere continuance Of the two
and a haif per cent. known under the name
Of 50 Mediterranean fund." II mas already
been stated that an encrease Of the impost
NsUtid not supply The deficiency which may
take place IN tue year 1910, aud exclHs We.
u oil TIC reimbursement OF the loan which
~ be wanted foe the service OF that year,
uIi the nationai expenses calculated on d
peace establishment and on the average oi
che aciuaI expenditures Of the six year.
1901 1907, viii not exceed ten millions
&. collars tor the year 1911, aud eghJ mil
lions after that year.
FOR tie only porttoa Of the existing debt
which according 10 law It will be pracnca-