The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-01-17
THE DEMOCRATIC PROBLEM.

How to Raise More Revenue and at the Same
Time Reduce the Tariff.
WASHINGTON, Jan. 16.-The sub commit.
tee of the ways and means committee on
the investigation of the condition of the
treasury expects to receive the latter part
of this week a large amount of informa-
tion from the treasury experts. showing the
receipts and expenditures of the govern
ment. The treasury officials, under the di-
reotion of Secretary Foster and Mr.. McLen-
nan. his right-hand man in fiscal matters.
have been at work steadily for three
weeks, and their work is expected to throw
a great deal of light on the state of the
governments finances, and the problem
which Mr.. Cleveland's administration and
the Democratic party will have TO meet in
the next two years. 1t can be said on good
authority that the treasury statement will
not show a deficit in the treasury or the
PROBABILITIES Icf one during the present
fiscal yea{! !eGut close analysis of it is ex-
pected TO show that Secretary Foster, at
times had a hard task making both ends
meet" and that his successor will be likely,
unless relieved by legislation at this ses-
sion raising additional revenue, to have
even q harder task, with pensions steadily
lncreaslng. Secretary Foster has informed
members of Congress that there will be en
available balance In the treasury July i,
next. of $40. 100000. This balance. however.
includes nothing for the sinking fund, of
which the annual requirements are $iS.0 .0O0.-
600. Democratic members of Congress ex-
pect to show that there have been times
when deficiency was only prevented
by policy of not paying anything
to-day the payment of which could be
put oft until tomorrow. Not a single
new public building has been provided
for during this Congress, but there still re-
mains over 2l1, 100000 to be expended on
account of pubic buildings and 81, 100000
against which there are no outstanding
contracts There are other matters also
In the government revenues which
made 1t necessary for the treasury TO go
slow" for fear :hat for the first time in
many years the balance would be on the
wrong side of the ledger Added 10 this
state of affairs Is the heavy. increase for
pension payments, which, next year. will
be many millions greater unless tie grant
of new pensions is diminished. more than
enough TO wipe out the s2O. .0O0.0OO of ex-
pected surplus July /.
These things are giving the party aboutto
come into power considerable concern, and
In order that the new admin stratIon may
go along smoothly jt Is considered highly
desirable that the treasury should have O
good working balance. say $50, ,000. coo more.
Secretary Foster will probably be exam
ined on this point and on the best means
OF raising the money. At present the plan
suggested which Is regarded as most ex-
pedient 10 the increase of the whisky tax.
This increase would raise over 35,000.000
additional yearly if the law could be SO
framed as TO affect whisky In bond. lt is
considered possible. however, that the dis
tillers would meet the increased tax by
taking whisky out OF bond at the present
rate. 1t Is pointed ont. however.
that the large amount of immediate
revenue would give the government q
working balance for some time To come.
and that after few months the increased
tax would begin to bring In more revenue
to meet the increasing pension payments.
There are many persons who prefer TO re-
wise the whole taxing system al once. but
against this course IL is urged that the
trouble over the withdrawal from bond Of
whisky because of au increased tax will
have To be met some time. and that &c had
better be met now so that there will be
more revenue from internal sources TO meet
the increase of expenses q year hence at
time when the customs revenue will be
falling Oft in advance OF q probable new /.
tariff law. What the outcome will be is of
course uncertain at this time. but matters
may soon develop by action on the part Of
the ways and means committee.
Representative Scott, of Illinois, is the
father of the proposition to increase the
whisky tax to Sl.25 u gallon. He has in
troduced bill on the subject When asked
about 1t he disclaimed. at the start. any in
tentIon to benefit the Whisky Trust, and
said. The point about my bill Is that It
would give additional revenue to the gov
ernment without q cent more OF expense in
the collection. Even on the theory of those
persons Who say that the government would
not get the increased tax on the large
quantity of spirits already manufactured.
the bill would give the government q con-
siderable amount of money at this time
when the treasury needs all the revenue it
can get. There might be less whisky taken
out subsequently,. but certainly the in-
creased tax would produce the revenue
now. No one can tell. of course. inst what
would happen in the next few moni tbs. The
Whisky Trust like any other institution
would make ell the money it could. My
bill. on the basis of the coliec tous of the
past year. would give about SS5. .000. 900 ad-
ditional revenue. It would not cost
moro TO collect Sl.25 than 90 cents
oh, wee, of course sI25 could
be collected easily. Too high a
tax might cause illioit distilhng, but the
proposed tax is not open To that objection.
There will be asearcity of revenue not only