Alexandria daily gazette, commercial & political. [volume] (Alexandria [Va.]) 1808-1812, 1812-01-24
Mr.. .G.4LL.4TIN'S REPLY.
To the CAan can Of the Committee. Of Ways
and Means.
TREASURY DEPARTMENT.,
January 10, 1912.

et
Sir,
In answer to the first inquiry of the
committee of ways and means, relative to
the interest arising on the proposed loan
of 1900, 900 dollars, necessary to supply the
deficiency in the receipts of the year 1917,
beg leave to observe that that Item was
not included amongst the expenses OF that
wear, because the estimate being made
with reference to the expenses alone which
had previously been authorised by law, and
a considerable proportion of those on &C
count of the public debt falling on the last
day of the year, it would not have been ne
5. cessarv in that view of the subject to bor-
row that sum previous to that day, and the
interest would not therefore have become
charge till the,year 1918.
With respect to the second inquiry OF
subcommittee, it was certainly Contempla-
ted, in conformity with the recommended
ton of the President, whose expressions
were adopted in the report, to raise a. re-
venue " sufficient at least to detraF the or
binary expenses of government, ana to pay
the interest on the public debt, including
that on new loans which may be authors
ed" The sum of about nine millions OF
dollars was assumed as answering that des-
cription for the present, and the express
sion of fixed revenue" which had been
used in reference to existing circumstan-
ces, was inadvertently applied to the case
of war. 1t will undoubtedly be proper, as
remarked by the. committee, to provide an
nually an additional and gradually lncreas-
ing revenue sufficient to pay the interest on
the loans required in the event OF war. Ii,
therefore, the loan for the present year will,
according to the suggestion ofthe commit
tee, amount to ten millions OF dollars, the
receipts into the treasury to be provided
for the year 1918, should, on those data,
amount to about 100000 dollars
The committee ask In tire next place,
the best opinion which am able to form OF
the probable amount of receipts from duties
on tonnage and merchandise In the event OF
war.
AS that amount will depend on the extent
of the commerce between the United
States and nations at peace with them, and
on the numbers of the captures respective
" made by our own privateers, and by the
enemy, it is matter of conjecture and not
asubiect of calculation for which reason
it was stated in the report, that that amount
could nota present be determined. Con-
sidering the rigorous restrictions laid by
France on the commerce OF the United
States with her own dominlons, and other
countries under her influence the dangers
TO which our commerce with the Baltic and
With China will be exposed; the relations
of England with Portugal and with Spain;
and also that no inconsiderable part OF the
captures made by our privateers will be
sent into foreign ports, great detaleatlon
in the receipts on duties on Imported mer-
chandise must be expected. The amount,
under \existing laws and circumstances,
has, from correct data, been stated IN the
annual report at six millions of dollars 1t
would in my opinion be unsafe, in an esti-
mate Of WAYS and means intended to be re-
lied on with certainty, to calculate In the
event of war, on more than 100000 dol
lars at the present rate of duties.
To the next enquiry of the committee,
respecting the increase OF those duties
which is thought practicable and advisable,
it's answered, without hesitation, that the
rate of duties may in the event of war be
doubled without danger or inconvenience
There will in such an event, be less. danger
of smuggling at that rate, than there is now
with the existing duties. With that in
crease the duties will still be much less on
an average than those paid on importations
in England, France, and most other coun-
tries. And they will be collected with more
ease torgovernment and less Inconvenience
TO the people than could be devised to the
same amount in any other manner.
A duty on imported salt might now be
calculated Or at least 100000 bushels;
bu, n time os war cannot be estimated on
mc.a than tw millions of bushels, produ
cling, at the rate of 90 cents per bushel,
100000 dollars