The herald., 1898-05-28
GORMAN OF MARYLAND
HE OBJECTS TO COMING SILVER
sEIGNIoRAGE
THE INCOME TAX PROPOSITION
Strongly Favored by Several Earnest
Speakers-Annexatio Amend
ment Threatens Long Delay
Associated Press Special Wire

Associated Press Special Wire
WASHINGTON, May 27-A notable
speech on the war revenue bill was de-
livered in the senate this afternoon by Mr..
German of Maryland, Democrat. In the
course of an argument in support OF a tax
on corporations he denounced as ''in-
famous" the decision of the supreme court
declaring the income tax law of 1894 un-
constitutional. Mr.. German took decided
issue with the majority of his fellow
Democrats upon their propositions to coin
the silver seigniorage and to issue legal
tender notes and made a powerful argu-
ment in favor Of the issuance of bonds to
raise funds with which to prosecute the
war.
Mr.. Teller concluded his speech begun
yesterday.
Nelson of Minnesota, Republican. pre-
sented carefully prepared argument
against the issue of legal tender notes.
In a speech of two hours Cockrell of Mis-
souri,, Democrat, discussed the financial
question in contention between the
Democratic and Republican parties.
Soon after the senate convened at IL
o'clock this morning, Mr.. Carter reported
from the military affairs committee bill
providing for a second-assistant secretary
of war to be named by the president and
to receive a salary Of $4,000.
After delay of fifteen minutes quorum
was secured and the bill was passed.
Mr.. Morgan then offered an amendment
to the War Revenue measure as follows:
When any of the islands of the Atlantic
or Pacific oceans are owned by the United
States, or when they are occupied by the
civil or military forces of the United States
as result Of war with Spain, or as a neces-
sary means Of conducting such war, to be
determined by the President, as the Com
mander-in-Chief of the army and navy of
the United States, 1t shall be lawful and
within his discretion for the President to
appoint civil or military government of
such island or any group Of such islands
with full authority under such rules and
regulations as the President shall pre-
scribe, not inconsistent with the laws Of
civilized warfare, to maintain good order
and to protect the lives and property and
the domestic peace of the people thereof.
And there shall be extended over such
Islands and enforced therein such parts
and provisions of the tax laws Of the
United States. or of such islands, with or
relating to customs duties or to internal
taxation as SHALL in the judgment and dis
cretion of the President be justly applic-
able to such islands during the existence of
the war with Spain.
1.-THE currency of the United States,
whether of gold. silver. or paper money,
shall be lawful tender in said islands, so
owned or occupied, in the same manner
and to the same extent that they are legal
tender in the United States for the pay
ment Of all debts, public or private.
"And the provisions Of this act that re-
late to such islands, together with such
regulations as shall be made by order of
the President for executing the same, shall
remain in force until the same are altered,
amended or repealed by act of Congress"
Consideration Of the War Revenue mea-
sure was resumed, Mr.. Teller taking the
floor to continue his speech begun yester-
day.
In concluding that part of his argument in
favor of an income tax, Mr.. Teller said that
II the proposition were submitted to the
senate, he would feel bound to vote for it,
despite the decision of the supreme court
against the law of 1894. Such tax, he said,
was supported by five decisions of the su-
preme court prior to that upon the law of
1894.
II have no reason to suppose" he said,
''that the court may not yet return to its
former decisions; indeed, have everyrea-
son to suppose that it will
Mr.. Teller then began discussion of the
proposition to coin the silver seigniorage
which, he said, had aroused great opposi-
ton. He declared the seigniorage could De
coined without detriment to the public SER
vice. Briefly adverting to the proposed
corporation tax Mr.. Teller said that while
he hoped to have an opportunity to vote
for tax that would apply to individuals
and firms as well as corporations, he would
be glad to support the corporation tax
proposed in the pending bill. Mr.. Teller
then entered upon an elaborate argument
for the issue of $50 900, 900 of legal tender
notes, concerning which he thought there
was no possible doubt of the right of the
government Mr.. Teller said he was con-
sidering the pending measure without
reference to the silver question, merely
with desire that the country should
adopt sound system Of finance. He was
opposed to the issue of bonds as unneces-
sary and dangerous.
Nelson of Minnesota regarded the prop
psition to issue greenbacks as one Of the
most Hmportant features OF the bill. He
declared that of all the loans made during
the civil war, the forced loan covered by
the greenbacks was the most expensive
the proposed issue Of legal tender notes
was not called for by any lackI OF money
in circulation, as the per capita circulation
was now higher than at any time since
1892. and only II cents lower than. IL was
then. He felt that the notes, If issued
would be an added menace to the treasury
and that 1t would enable those inclined to
deplete the gold reserve and render It
easily possible to force an issue of bonds
Closing, Nelson declared that in any way
1t might be taken, the view of the major
ity of the finance committee was wrong
and could not be safely followed.
Cockerell contended that the biM as re-
ported, including provisions for the coin
age Of the seigniorage and the issuance
of treasury notes and the elimination OF
the ponus wouiu provloe suElcIent reve-
nues for the conduct OF the war.
German of Maryland said hesapproved of
some provisions of the house bill and some
m the amendments made by the senate
committee.
The burdens ought to be placed upon the
large interests able to pay the taxes, in
z1ead Of upon the people regardless Of their