The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-03-25
BONDS MAY BE ISSUED.
Raising of War Funds Discussed by
Members of the House.

CHICAGO, March 24.-The Tribune s
Washington correspondent says: With war
actually threatening and with a possibility
that hostilities may begin at any time
within the next few weeks, the question of
ways and means of conducting a war has
been carefully considered. No formal meet
ing of the ways and means committee of
the House has yet been held, but the men,
bers have talked over the situation among
themselves and have come pretty near to a
definite understanding. The sentiment is
practically unanimous that in case of war
money would have to be raised at once by
large issue of bonds sufficient to furnish
the President with ample funds and at the
same time strengthen the treasury against
the inevitable panic which would be engi-
neered by Wall street, resulting in the rapid
depletion of the gold reserve. If it were be-
leved that the war would be one of long
duration steps would be Immediately taken
to raise extraordinary revenues but the
more experienced members of the commit
tee say that even if revenue is provided the
issue of bonds will be none the less neces-
sary, because money will be needed in large
quantities at the start.
Considerable thought has been given to
various propositions for raising revenue by
tional customs duties. But it is felt that
these measures must necessarily be resorted
to after a bond issue to provide for interest
charges and the conduct of the war rather
than to meet the first shock Of battle be-
cause it is evident that any revenue provi-
sion must necessarily produce money Snsl soW
produce in the neighborhood of $780,
900 year, but this would come in piece
meal, and the same thing would be true of
the other internal revenue or customs tax.
whereas the special necessity of the govern
ment would be for a large sum of money
On the basis of the $50, 600 already voted
for mere preparation, 1t is figured that the
first bond issue would hardly be less than
$2O0, coo. This sum the members of the
committee believe would be readily sub
scribed for by our own people without going
abroad, although the balance of trade Is
now so heavy in favor of this country that
Europe would probably be glad to liquidate
its Indebtedness on American securities In
view of the fact that, whatever may be the
issue of the first month or two of the war.
the final triumph of the United States is
inevitable. 1t Is figured out that the country
cent. even in face of the fact that Congress
would permit no change in the phrdseology
of the bonds and they would have to be
made payable In coin instead OF gold. The
last bond sale was on basis below per
cent and 1t is not believed that the threat
of war would raise the interest rate materi-
has voted overwhelmingly for sound money
and thus has given moral pledge OF nom
|
The treasury had in its possession to-day
the enormous sum of 1924 2,3l4. OF this.
$72, 004, 265 was in gold, in excess OF the fixed
reserve, so that without paying out green
backs or silver certificates the treasury
could spare that large sum in gold without
interfering in any way with its usual opera
lions. As q matter of fact. the excess OF
gold has been something of an embarrass-
ment, and it has lain idle in the treasury
vault, apparently waiting for just such an
emergency as now confronts the country.
Promptly following on a declaration OF war
Congress would certainly authorize heavy
issue of bonds, and this would at once place
the treasury in a condition where 1T could
defy the expected assaults from the stock
jobbers and the frightened business inter
ests of the north Atlantic coast. Following
upon the bond issue, Congress would UNI
doubtedly provide for additional revenue,
to be somewhat in the nature OF sinking
fund to meet the interest charges and pro-
vide for the gradual payment There are
abundant avenues of revenue open YET
which could easily produce large sums OF
money. They would, of course, take uine'
but they would be none the less necessary,
for q war even of short duration would cast
the country several hundreds OF mnllons.
whereas the entire receipts from customs
from July up to the close OF business To-
dav were only $104, 016 AIS and the internal
revenue for the same time was Sl2O ,olf ,34e.
The hig defense fund put in the hands OF
President Mckinley wiped out CONSIDERABLY
more than half of all the money derived
from the Dingley tariff.