The Durham daily globe. (Durham, N.C.) 1889-1894, 1892-11-21
HOW THEY'LL DO 1T !
A Probable Solution Of the Serious
Deficit Problem.
How the Next Administration Will Make
Ends Meet
PENSION ROLL MUST BE CUT DOWN
An Income Tax List One of the Proposed
Means for Replenishiug the
Treasury.

Treasury.
WAsHINGTON, Nov. 21.-[Speciall-I
view of the repeated announcement made
by the democrats during the campaign
that deficit in the treasury is inevita-
BILE, and in view of the concessions of
treasury officials that this deficit will
occur about the end of the first fiscal
year Of the democratic administration,
the principal problem that is now vexing
the financiers Of the party is how to raise
sufficient revenues for the government
without violating and disregarding the
solemn pledge Of the party platform to
repeal the Mckinley bill When the Nc
kinley bill was before congress the demo-
Gratis held that it would immeasurably in
crease the revenues; but after eighteen
months of trial it is found to turn into
the Golfers of the government decreased
revenues Free sugar and the high duties
upon certain articles which a fostered
protection has caused to be manufactured
in this country have cut down the imports
of duty paying goods to the minimum.
To begin with, the democrats are
pledged to place wool on the free list and
H<>V snn, q l,,f,,
tain wooden goods, which must reduce
the revenues at least $4O,OOO,OO0 a year
Other reductions are expected to further
reduce the revenues by $50,00000O or
$4,000, 900 year. The democratic party
will repeal the sugar bounty, however,
and this will save from $14,000,000 to
$16,00O,000 annually. This will reduce
the loss of revenue to between $40, ,00O,000
and $50,000,O 900 a year. The deficit under
the present laws is estimated at from
$4O,OOO,OOO to $6O,OO0,00O, should nothing
be done in the way of legislation for rails
ing or reducing the revenues. 1t will be
seen that if the democrats make good
their promises in repeating the Mckinley
law they must at the same time make
provision for raising at least $1O0,00O,00O
more revenue annually.
1t is conceded by democrats that there
are only two methods of meeting this
contingency. One is by adopting a Iii
rect income tax, which will compel every
one who has an iRcome from whatever
source to pay certain tax to the gov
ernment The minimum income which
shall pay a tax is figured at anywhere
betweeen $4,000 and 50 600 annually and
upward The other plan is to adopt
England's direct tax law, which com
pels all persons paying a bill or giving a
check or draft or order for $40 and up
ward to pay an internal revenue stamp
of one per cent Both OF these methods
are so unpopular that they will meet
With a storm Of public indignation when
proposed by the predominating party in
congress. 1t has been suggested that the
tax Of 80 cents per gallon on whiskey
C IN be raised to 81 or : p, but since the
disiillers control the politics of certain
states they will arise in a body and force
their representation in congress to make
| rebellious opposition.
/ 1t is being intimated by controlling
democratic spirits here that some i'm
! portant pension legislation may be re
suit of the threatened shortage in the
revenues. The democrats frankly con-
! fess that they have not over twelve per
cent Of the soldier vote, and in some To-
calities not over three per cent, and it is
| their belief that they can, by making
heavy reductions in the pension pay
ments, gain more voters than they would
lose, as ii is held by them that there is
strong opposition even in the republican
party TO the present heavy pension pay
ments. 1t has been estimated that the
pension payments tor the fiscal year end
ing June 80, 1894, will aggregate the
enormous amount of $16j, 600, 900 The
democrats say they can CodifY the pen
sion laws-that is, repeal all Of those on
the statutes and pass single and simple
one-so as TO save" at least 800 600, 900
year, and not do an injustice to any
pensioner That would be accomplished
by paying pension OF saw $l2 month
To those who were disabled in action, or
the widows Of those who lost their lives
upon the field or who were disabled in
action and have subsequently, died.
After all. there is a preponderance OF
( opinion that the great saving" will be
from the pension list p s HEATH.
Some FooIi.h People