The herald., 1898-04-27

rOd0ss nelu III tne treasury IOr tne pay
ment of that amount of Pacific railroad
bonds due January next and $33, 900 900 of
the bank redemption fund held for the
payment Of the notes of national banks
failed and In liquidation or reducing circu-
lation. Deducting these amounts and the
actual available cash in the treasury at
that time belonging to the government, ex-
elusive of the greenback redemption fund
was only S65,00O,000. 1nasmuch as a work
ing balance of about $40, 900 is required
to properly carry on the operations of the
government there remained only $25 ,O0O, 900
belonging to the government available In
meeting the $50,000000 appropriation. 1t
will be necessary to meet all the expendl-
lures under the $50, 900 900 appropriation
all of which has been expended within
few weeks-to use s25, 100000 of the bank
redemption fund, part of which must be
replaced before the close of the present
calendar year.
The expenses of the preparations for de-
fense that have been going on for nearly
two months are at the rate of S25, ,0O0, 600 per
month or $500 900 900 per annum and the
expenses of actual war will be more.
Your committee recommends the levying
of Internal revenue taxes either on articles
OL voluntary VI Cl ODJcCto
that will make such taxes fall mainly on
persons able to contribute to the national
defense, which will in the aggregate yield
from $780, 900 to $1,000 900 in addition to
the present revenues.
The report then enumerates the different
articles to be taxed and the estimates
heretofore published Of the amount of rev.
enue to be derived and continues:
Ntac or oil IN nt,i At<,t,
were assessed during or subsequent to the
civil war, with one exception and there
fore open up no new and untried system
of taxation. They are all internal revenue
war taxes that can be collected by the ex-
isting internal revenue officials, slightly
increased, with small additional expense,
and with the minimum disturbance of
| trade. although they are all taxes which
are unwelcome, and which it would not
have been necessary to impose if war had
been avoided
while all of the additional taxes are
war taxes which would be naturally re-
pealed or modified when the necessities of
war and the payment of war expenses
have ceased, yet it is impossible now to
place a limit on them, not only for the rea-
son that no one can inteligently forecast
tiiC ASh6e ia VI thS wal but aiSo Aoi thC iOe-
son that war always brings a train Of ex-
traordinary expenditures which do not
terminate with the close of actual hostili-
ties 1t is eveident that 1t will be neces-
sary. in order to maintain the public credit,
not only to raise the additional revenue
provided by the accompanying bill, but
also to authorize the secretary of the
treasury to borrow on tine credit of the
&c ta h
lie necessities will require.
I'VE have given, therefore, authority to
issue and sell, not exceeding $500, ,0OO, 900 of
ten twenty per cent coin bonds to be Of
fered as a popular loan, believing as we
do that such a bond will be taken from
time to time by the masses of the people.
We have issued the following years as the
period ON which the bonds issued may be
redeemed at the pleasure of the United
States, not only because we regard it nec-
essary to do this in order to secure SUBJ
|scrptions at par for the latter issue, but
also because the fact that the 800 900, 900 5
per cent loan of 1904 and the large per cent
loan Of 1907 would inevitably be paid or re-
funded by the government before a 8 per
cent bond would be redeemed, making
bond that can be redeemed at the end of
five years.
"In view Of the fact that it will be nec-
essary in a few weeks before the proposed
war taxes can bring results and before
the loan authorized can be placed, to pro-
vide means to meet the rapidly augment
ing war expenditures, authority is given
the secretary of the treasury to tempo
rarily borrow money, in no case exceed
ing one year. by the issue of per cent
| - ia S<-l
tant that the secretary Of the treasury
shall have this authority in any exigency
that may arise in the future
Amendments Rejected
At the meeting Of the committee Bailey
on behalf of the Democratic minority, Of
fered the substitute agreed upon by them
for the proposition in the bill authorizing
the issue Of $500 900 900 coin bonds. 1t pro-
vided for an income tax of per cent on in
comes from all sources in excess Of $4,000.
State, county and municipal bonds, how
ever, were excepted from it's provisions to
meet the unanimous decision of the su-
preme court In this respect. The minority
estimates that such an income would re-
alize $100 900 900. Coupled with it was the
proposition to coin the silver seigniorage
which at present amounts to $42 900 ,000 The
substitute was voted down by strict
party vote. No amendments were offered
to other provisions Of the bill, owing to
the lack Of time.
Army Reorganization
WASHINGTON, April 26.-The conferees
of the two houses on the army reorganiza-
tion bill agreed to the senate amendment
requiring that the quota of militia Of the
various states and territories shall be in
companies, troops and batteries, in order
to be accepted by the president, and also
the senate amendment increasing the sig
nal corps to the extent Of ten corporals
and 120 privates. The conference refused
to accept the amendment authorizing the
active employment of retired army Off
GERS in time Of war and it was eliminated
from the bill.
Chairman Hull of the house committee
on military affairs was in conference with
the war department authorities during the