The record-union. [volume] (Sacramento, Calif.) 1891-1903, 1898-04-28

cussion of the probable cost of the war.
Savers ventured an estimate of $500,
0G0,C00 per annum, which Dirgley re-
jected, calling attention to the fact that
the Civil War cost 81. 100,000000 per
annum.
Sayers, while avowing his willingness
to vote every dollar necessary TO pros
ecute the war, contended that there
was no necessity for authorizing in this
bill the raising Of 500. 100000, when
Congress would meet again in Decem-
Der. A plethoric treasury in time of
war. he argued, would invite endless
schemes of spectators until it was
gone.
Dingley pointed out that the author
ization for $700.0C0000 was simply an
authorization. II not needed, all the
bonds would not be issued
Dingley briefly discussed the PROPOSE
ton which the minority would advance
for an income tax as substitute Tor
the bond proposition. The Supreme
Court had decided the tax unconstitu"
tional. and yet it was proposed in place
of an authorization to borrow money TO
remand the Government TO what
would come out of a lawsuit which had
already been decided against the Gov
eminent. 1T seems so preposterous IN
such an exigency," said Dingley, that
l can hardly believe such proposal Is
to be seriously presented"
The proposition to coin the silver
seigniorage he characterized as one OF
the absurdities of finance which was
never heard of beyond the borders of
the United States. Seigniorage was the
-
coming silver.
Dingley was given hearty round OF
applause when he concluded
Bailey, the leader of the minority, fol-
lowed DingIey with the opening argu-
ment on his side. He said that his
side realized as much as the other the
necessity of raising revenue to carry
on the war, and they stood willing to
cooperate in placing at the disposal OF
the Government every material aid for
the prosecution of the war to a success
full and speedy termination. There
would be no difference of opinion that
the Government should be abundantly
provided with revenue. But, said he,
the minority would not be either led or
driven into the support of measures
which commended themselves neither
to their cOnsciences nor Judgment. They
reserved the right TO oppose the meas
ures by which the majority proposed to
provide the war fund.
Bailey spoke with a trace of bitter
ness at the treatment the minority had
received at the hands of the majority.
The Chairman Of the Ways and Means
Committee had said that the pending
bill followed closely the system of war
taxation which obtained at the close of
the civil war That system, Bailey said,
had been successful in respect to those
taxes which fell most heavily upon the
producing and consuming classes. Beer,
tobacco and other articles were taxed;
but in one respect in his opinion, ut
terly indefensible. the system in vogue
at the end of the civil war had been
discarded. The tax on bank capital
and bank deposits was omitted. At
one-half of l per cent. such a tax would
produce $4,000 coo. If there was one
species of property above all others
that ought to be the subject of extra
ordinary taxation it was bank depoS-
its, the only form of property owned by
one class which was used by another
There were in the banks of the United
States 81, 100, 900 900 of deposits.
Proceeding with his criticism of this
and some other features of the bill,
Bailey declared that, imperfect as it
was, his side of the House would take
it if the other side would accept their
proposition for an income tax, which
would provide an additional income Of
$109000,G00. Democratic applause.)
He thought the estimate of Dingley
($25, 100000 a month for war expenses)
a reasonable one.
Bailey also contended for the propo-
sition to coin $4S,000,000 of the silver
seigniorage, and to that, he thought
an issue of sos, coo, 0G0 of legal tender
could be added with propriety. The
greenback circulation could be extend
ed that far without danger.
The gentleman from Maine Dingley)
advocated the placing of a bonded debt
on this country of 5000, coo, 000. When
ever the country's credit ought to be
pledged, he would be willing to do this,
but there was not, in his opinion, any
necessity for mortgaging that credit at
this time.
I'VE propose" said Bailey, ito tax
the rich man now rather than to mort
gage the energies of the poor man for
coming generations" applause on the
Democratic side)
Discussing the question of the SUI
preme Courts decision on the income
tax case, he declared that no question
was ever settled until it was settled
rightly.
Bailey then entered upon an extended
argument upon the constitutionality Of
an income tax combating the theory
q IN i'm
the Constitution.
Bailey said the income-tax provisions
which the minority had drawn, ard
which would be offered by McMilln,
had been draw to meet that portion of
the courts decision which was unani-
NOUS, and in which he concurred, bv
exempting Federal, State, county and
municipal bonds.
Dolliver Rep) of Iowa. a member of
the Ways and Means Committee. was
then recognized. He was listened to
with close attention. and was frequent
ly interrupted by applause He said,
in part:
There are two ways in which a Gov
eminent can support a large expense of
this character-either by collecting it in
cash or by borrowing it on credit. The
Committee on Ways and Means has
fully considered both methods, and we
have made up our minds that the Gov
eminent ought to pay as it goes so far
as it can, leaving as little of the bur
den of our intervention in Cuba to the
future as possible.
If the war upon which we are about
TO enter was to secure new national
possessions or any other acquisition of
material assets. the case might present