Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-12-31
THE ADDITIONAL REVENUE NEEDED
Government Running Behind Hand
in Its Receipts Monthly.
A RITICAL CONDITION

than what they do believe. These offcialS
statements are not in harmony with the
views which the treasury officers have pri-
vately expressed. What the purpose is of
giving publicity to such a guess" for
that Is what the statement is, as to the
probable operations of the new tariff law
for the coming six months, is not clear.
1t can hardly be designed TO indicate to
Congress that the treasury is not In need
of any further revenue; for the energies
Of the administration are now chiefly di-
rected to discover how existing sources Of
revenue can be made to yield better re-
suits, and how additional sources Of reve-
nue. can be provided SO that bond issues
may be avoided.
Deficit for the Past Six Months.
The fact appears that the receipts of the
government for the last six months have
been SIS, 100000 less than the expenditures.
During that period the total amount of
duty received from sugar was S21O,0O,
while, under the operations of the law
which has been repealed, the sugar re-
ceiptS were annually IN excess OF SJo,ooo,-
600. 1t appears that, in the treasury fore
cast OF the probable revenue for the next
six months, a large amount is expected
from the sugar duty. Yet those who are
the most familiar with the sugar business
have expressed the opinion that no very
large sums are likely to be received from
the importatioES of sugar, owing TO many
business and tariff complications. The
vast store of sugar which was imported in
advance of the passage of the new law is
by no means exhausted, and it will fur
nish the refners an abundant store for a
very long period, particularly if there is to
be any considerable reduction in the out
put of the reiineries, as has been threat
ened
No revenue whatever is expected during
the next six months by the treasury ex-
perts from distilled spirits, while the re-
ceIpts from the income tax Qf that shall
not do declared unconstitutional before 1T
can 20 into effeCD are entirely prOblematt
cal Meanwhile the gold balance, which a
few days ago was Sl27 100000, has been
reduced in round numbers to $S6,UT.Uo0.
and the Secretary of the Treasury does not
hesitate to inform Congress, as he rGCeit
ly did in his statement to the House bank
ing committee, that as things are now GO
ing 1t seems very probable that another
sale OF bonds viii be ueceSs sary to again re-
plonish the gold reserve, unless Congress
shall enact the desired currency legisla-
uon.
Ia view of these facts, how il can hap
pen that the treasury can give out
statement called official which is declared
TO be very satisfactory and to afford
very cheerful prospect for the future, in
the absence of legislation, it is not easy
to understand.
1t is known from private sources that the
that more revenue must be provided by
the present Congress, unless the govern
ment is to rely upon repeated sales of
bonds for current expenditures. 1t is dis
covered, moreover, that, owing to the
extension OF the bonded period and to the
extensive Withdrawals of distilled spirits
from bond when the 30 cent tax was
still in effect, the government is practi-
Cally receiving no revenue from distilled
spirits. The commissioner of internal rev.
enue, when asked recently by demo-
cratic friend how much revenue could be
expected from distilled spirits, said that
he was not certain that any revenue from
that source could be reasonably expected
for q year, owing to the fact that the large
stock of spirits withdrawn from bond when
the 90 cent tax was still in effect is still
undispcsed of upon the market, and there
is no present indication that any OF lhe
spirits put into bond under the new tariit
law will be withdrawn for early conSuInp-
ton.
How to- Raise More Revenue.
Per contra, to this optimistic statement
unless those who are usually well-informed
are greatly mistaken, and unless treasury
officials who are necessarily in the con-
fidence of the Secretary of the Treasury
have been talking through their hats"
there have been recently some important
conferences. the object of which has been
to discover how best additional revenue
can be provided.
A treasury officer has inadvertently
given some hints to indicate that the Sec
retary OF the Treasury is likely to ask Con-
greSS to Immediately furnish him with ad-
ditionaI revenue. 1t appears that, what
ever the Secretary of the Treasury may
choose to say for political effect, some of
the treasury authorities are convinced that
the new tariff bill even If the income tax
shall Re declared constitutional, and shall
prove TO be effective, will not yield ade-
quate revenue.
The situation has become critical. The
practical effect is that the new tariff law
does not yield adequate revenue to run the
government. The Secretary of the Treas
ury has discover ed that the pressing cur
rent obligations of the government are not
to be met by promises based upon the un-
certain and indefinite operations of the
rev tariff law. The issue Of bonds, more
over, is not approved by the masses of the
democratic party, is unpopular otherwise,
hazardous and possibly dangerous.
To Increase the Tax on Beer.
There have been during the holiday re-
cess several private consultations of the
democratic leaders to determine how i'm
mediate revenue can be secured without
res orting TO the sale of bonds. 1t has been
discovered that the best practical source of
immediate revenue is the increase of 81
per barrel upon beer and malt liquors
That increase would yield 81 ,OUO,UUU of
revenue and it would be Immediately avail
able.
1t would help the government, perhaps,
to bridge over the uncertainty in the re-
Ceipts from the new tariff law from other
souGIe eS and provide against doubt as to in
come which may result from the income
tax if that tax shall not he altogether lost.
one of the plans which is being considered
is how 10 get action upon this subject in
such way as to avoid the roCpening OF
the entire tariff question and to escape the
inevitable consequent debate. 1t has been
suggested that the result might In some
way be reached by Il joint resolution which
would he less exposed, it is thought, to par
liamcntary delay and opposition than bill
would be. But the method has not yet been
determined upon.
Brewers and Their PULL"
1t will not escape public notice that the
proposition to impose this additional tax
on beer was earnestly advocated pending
the discussion of the tariff bill, and that it
was rejected both by the committee on
ways and means and by the Senate finance
committee. The only explanation which
has been given OF the rejection of this
proposition has been that the brewers
seem 10 have al extraordinary pull with