The enquirer. [volume] (Richmond, Va.) 1804-1815, 1812-01-28

system the United States IN solid foun-
dation, it requires the aid of a revenue, suf-
hcient at least to defray the ordinary expen-
ses of government, and to pay the interest or
the public debt, including that on ne W loans
which may be authorised.
That the expcnces of the year 1912,
calculated on the existing state of af-
fairs, and including the interest on the
public debt, will amount to Ss,4oo,ooo
That the whole amount of actual re-
cepts into the Treasury, during the
year 1912, may be estimated at 100000
Leaving deficiency (which it is pro-
posed to supply by authorizing loan1
of 100000
And that an authority to borrow a sum
equal to that which will be rcimburs-
ed of the principal of the public debt,
during that year, will he necessary,
and amounting TO not less.than 1883 II
Making the whole sum which it is pro-
posed should be provided for Try loan,
). for that year, 3,s35,3iS II
Under this view of the subject, the Com
mittee of Ways and Means have instructed
me, to enquire of you, whether, according
to the principle first above stated, it does
not become necessary to provide " fixed
revenue to be received during the year
1912, equal as well to-the estimated expen-
SEES of that year, AID amounting as above
stated to 100000, as also to the interest
which will arise on the proposed loan OF
SI,2o0,0O0; or otherwise whether it is pro-
posed to provide for the payment of such in
-1erest, out OF the money in the Treasury,
at the commencement OF that year, or from
any other sourcel
I'D. 1t Is stated in, your report " that a
fixed revenue of about nine millions of dol
lars is necessary under the existing circum-
stances OF the LlRited States land that the
same amount would be necessary, and with
the aid of loans, will, in your opinion, be
sufficient in case of war" $50, (
IL reference to this state of things, the
committee wish you to state, whether, as in
the event of war, increased loans will nm
doubtedlybe required, it will not be necessa-
ry to provide an additional and gradually
increasing revenue, to pay the interest on
such loans?
Sd. 1t is stated in your report "that the
permanent revenue, or annual receipts, af-
ter the year 1912, Calculated on the ex sting
state OF affairs,) together with an addition
OF SO per cent. on the present amount of Clu-
ties, may. be estimated at nine millions Of
dollars land that should any deficiency a
rise in the event of war, it may be supplied
without difficulty by a further increase a
duties, by restoration of that OIL salt, and
by a proper selection of moderate internal
taxes
favor them with the best opinion which YOU
are able to form Calculated On the event ot
wa of the probable amount Of the receipts
from duties specification of the increase
OF duties, which you would think practicable
and advisable; an estimate of the amount OF
that on salt, and such selection of mo.
derate internal taxes, YOU would recon-
mend, with the probable expense of colec-
ton; and the amount of ret revenue estima-
ted to arise therefrom.
4th The committee request that yor
would furnish them, in connection with you,
replies to tho preceding inquiries. with al
estimate OF ways & means Calculated on the
event OF a war; which will provide a reye
nue. Sufficient to meet the extraordinary ex.
pences OF government, and provide for the
legal reimbursement and interest of the pub
lie debt, including the interest of new loans
to the amount at least of ten millions Of dol
lars per annum accompanied with such 2
scheme for the reimbursement Of the princi-
pal Of the new loans as YOU should deem ex.
pedient, together with such opinions as you
may have formed respecting the terms or
which such loans may probably be obtained
a 30, such further views or information con.
Dected With, or touching the foregoing OBJ.
Jccts OF enquiry, as you may deem nccessa-
ry and expedient.
with great respect, I have the honor t
be, your obedieGt servant
E. BACON.
Honorable Iibert Gallatin,
Secretary ofhe Treasury.
Letter firm, the Secretarv offhe 7reasur,
TO Me Chairman otrthe Committee of Tpayi
and Means
TREASURY DEPARTMENT.,
JGHnaru 10, 1912.
SlR--In answer to the first enquiry of tn,
committee Of Ways and Means, relative t,
the interes. arising on the proposed loan o
100000 dollars, necessary to supply the
deficiency in the receipts Of the year 1912,
beg leave to observe that that item was no
included amongst the expenses of that year
because the estimate being made with re
ference to the expenses alone which haC
previously been authorised By law, and
considerable proportion of those on accoun
OF the public debt falling On the last day o
the year, it would not have been necessar,
III that view OF the subject 20 borrow tina
SUN previous to Shat day, and the int res