Evening journal., 1898-04-23
TIHE WAR REVENuE.


ury to meet the costs of the war, the
course Of wisdom Is at once to make
provision for meeting the costs OF war
should the sum now in the Treasury
prove insufficient. And this is doubly
true II we are to rely upon Increased
taxation for meeting a share OF the
costs, FOR to put on making provisions
for raising more revenues until the
money was actually needed would be to
leave us without money when the
want pressed. We cannot increase
revenues In a day. To be assured OF
increased revenues a few weeks hence
we must make provision now. This is
quite generally recognized, and the
question OF making provision for re-
plenishing the cash in the Treasury so
that the costs OF the war may be
promptly met, however great or con-
tinuous they may be, is one that is re-
garded as pressing.
A prudent and wasteless way to an
swer this question would be to author
lie the secretary Of the Treasury to ia-
sue hundred millions or so OF Treas
ury notes that might be issued, if need
be, to pay for war materials and that
would circulate as money. Such notes
would not be issued unless the need
for them arose because OF insufflciency
OF the money now In the Treasury, and
over and above the gold reserve OF
t.+hf
will doubtless insist on keeping sacred,
to meet the costs OF the war. II the
war was OF short duration and the
money now in the Treasury aside from
the gold reserve proved sufficient 10
meet the costs of the war, there would
be no call to issue such notes, and at
the same time any loss or needless
hindranee to trade occasloned by Inn
posing new or higher taxes that, in the
light OF after events, would appear
quite unnecessary could be avoided
for with provision made for meeting
an emergency by an issue Of Treasury
notes II would be quite safe to post.
pone the imposing OF new taxes and
the raising of additional revenues un-
til we found whether such taxes would
be really needed And on the other
hand IL the war was extended and the
costs grew so as to absorb the idle sur
plus now in the Treasury and show the
need of raising more revenues, we
could impose more taxes with the GER
tainty that the taxes imposed were not
n needless burden on trade and indus
try or an uncalled for withdrawal OF
money from the channels OF industry.
a withdrawal beyond the needs Of war.
1t may be said that we should in
crease taxes to replenish the money
now in the Treasury in excess Of the
gold reserve, and that is sure to be
taken to meet the costs OF war, that
the large cash balance now in our
Treasury and far beyond the current
needs OF the government should lie
kept intact, that the surplus, that is tho
remnant OF the Cleveland bond issues.
should De kept sacred. But that bal
ance is useless, indeed a hindranee 20
trade to keep, for when 1t was taken
out of the channels Of industry il
caused contraction, falling prices,
shrinkage of profits and a paralysis of
business, and to put it back again
would give prices an accelerated up
ward tendency, instill profits into IN
dustry and enliven trade
SO to increase taxes merely to keep
intact a surplus over and above the
gold reserve of s125,OOO,OO and a sur
plus that is at least s75, 900 900 greater
than the convenience OF the govern
ment demands would be folly Yet Il
we set our faces determinedly against
an issue OF Treasury notes and refuse
to make provision for an emergency
by authorizing such an issue we dare
not put OF making provision for rails
ing money in some other
way If, as we have said
reliance is to be put in additional
taxes for raising moneys to meet, in
part, the costs Of war, and no first re-
lance placed in Treasury notes, We
must at once, for safety, make provi-
sion lot raising additional taxation so
that such taxation will commence to
yield revenue before the SIS, ,OOO, 900
OF idle surplus now in the
Treasury is exhausted. If we do not.
II we wait until that SIS, ,OO0,O0O is ex.
hausted and the need OF more mona
becomes pressing, it will be quite i'm
possible to get such increased money
by taxation in time to be of avail for
to increase revenues by taxation takes
time. In short, We must make provi-
sion for raising more revenue before
the day we need such increase or else
we viii be left in the lurch.
In the midst Of all this huriy-burly
our representatives atWashington must