The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-04-27

thority of the joint resolution of March o.
ana that, too, with large falling off of
customs revenue the last ten days of March
arising from threatened war.
There is no doubt that if peace conditions
had continued the estimate of the secretary
OF the treasury that the revenue for the
next fiscal year would reach $3.50 100000, ex-
elusive OF postal receipts-$63 900 600 in ex-
and more than that sum in excess of what
the revenue for the next fiscal year 1897
would have been If 1t had not been for
anticipatory importations in the last four
months OF the latter year to avoid the in
crease In the new tariff, would have been
more than realized and these receipts would
have more than fully met the expenditures
OF the next fiscal year had it not been for
the increase caused by the difficulties with
Spain, inasmuch as the expenditures for the
fiscal year 1896, exclusive of postal expendi-
lures paid by postal revenue, were only
$SS2 600 000. and for the fiscal year 1897 only
$685.. 100000.
diuons arose had SO stirred the public mind
as to demand largely increased apporpria-
tons for enarging the navy and fol. ma
tional defenses. The destruction Of the
United States battle ship Maine in the har-
Dor Of Havana on the 18th of February,
last so intensified the situation that Con-
gress few weeks thereafter realized the
necessity of taking prompt action to pre-
pare for any exigency and by joint resolu-
ton appropriated $4,000 900 for national de-
luton about SIS coo Of this hi 'ap 19
have already been practically used, al
though payments have as yet been made
for the remainder of the appropriation will
have been incurred within two weeks.
CONDITION OF THE TREASURY.
IAN examination of the condition Of the
treasury will make 1t apparent that no time
should be lost in providing ample ways and
means for carrying to a successful conclu-
sion the war in which we are now en-
gagged The apparent cash balance in the
treasury when the joint resolution appro-
priating $5O.OOO,000 for national defense was
passed was about $225 100000, including the
500 900 gold redemption fund, or $125, 0O0.-
600, excluding that fund. But this balance
was only apparent, inasmuch as $4,000, 900
consisted of fractional silver, largely un-
current, and minor coins, leaving only $112,-
100000. But of this amount 900 con-
sisted of receipts from the sale of the Pa
cifc Railroad held In the treasury for the
payment Of that amount of Pacific Railroad
bonds, due Jan. 1, next, and $33. 900 of the
bank redemption fund held for the payment
of the notes of national banks failed, in
liquidation or reducing circulation. Deduct
ing these amounts, and the actual available
cash in the treasury at that slime belonging
to the government, exclusive of the green
back redemption fund was only $65, 900 900.
InaSmuch as a working balance of about
%OOOOOOO is required to properly carry on
the operations of the government there re-
manned only $25, coo coo belonging to the gov
eminent available for use in meeting the
100000 appropriation. 1t will be necessary
In order to meet all of the expenditure I'M
der the $50,000.000 appropriation-all of which
will have been expended within few
weeks, to use $500 900 of the bank redemp-
ton fund, part of which must be re-
placed before the close of the present cal
endar year
nave plunged the country into war, whose
magnitude and length cannot now be intel
ligently forecasted, 1t is necessary that
measures should be Immediately taken TO
provide ways and means to carry on naval
and military operations on a scale and with
a promptneSS which will exert an important
influence in shortening the conflict. The ex-
penSeS of the preparation for the defense
that have been going on for nearly two
months are at the rate of $25 900 per
month, or $500, 600, 600 per annum, and the
expenses of actual war will be much more.
Your committee is of opinion that the ne
ceSSitieS of the country, as well as the early
suc6esSdul conclusion OF the e war eau Tor
authority to make loans, for means to carry
on naval and military operations, as will
impress the great powers of Europe, as
people of the United States are united in
the determination to prosecute the. war on
a scale and with Vigor that will make
prolongation of hostilities useless.
INTERNAL REVENUE TAKES.
with this end in view your committee
recommends the levying of internal revenue
taxes either on articles of voluntary con-
sumption or on objects that will make such
taxes fall mainly on persons able to con-
tribute to the national defense which will
in the aggregate yield from ninety to one
hundred millions additional of annual reve-
nue."
The report then enumerates the different
articles to be taxed and the estimate here
tofore published of the amount of revenue
to be derived, and continues: "These are
all taxes on objects which were assessed
during or subsequent to the civil war, with
one exception, and therefore open up no
new and untried system of taxation They
are ell internal revenue war taxes that can
be collected by the existing internal reve-
nue. officials, slightly increased, with a
small additional expense and with the mini
mum disturbance of trade, although they
are all taxes which are unwelcome, and
which 1t 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 repealed or
modified when the necessities of war and
the payment of war expenses have ceased.
yet it is impossible now to place limit on
them. not only for the reason that no one
can intelligently forecast the length of the
war. but also for the reason that war al
ways brings a train of extraordinary ex-
penditures which do not terminate with the
close OF actual hoStilitieS. 1t is evident that
1t will be necessary in order to maintain the
public credit not only to raise the add-
tional revenue provided by the accompany
ing BILL but also to authorize the secretary
of the treasury TO borrow on the credit of
the government, from time to time, as the
public necessities will require. We have
given, therefore, authority to issue and
sell not exceeding $500, 900 900 of ten-twenty
per cent. coin bonds to be offered as a
popular loan, believing as we do that such
a bond will be taken from time 30 time by
the masses of the people. We have fixed
ten years as the period after which the
bonds authorized may be redeemed at the
treasury of the United States, not only be-
cause we regard it necessary to do this in
order to secure subscriptions at par for the
later issues, but also because the fact that
the one hundred million per cent loan of
1854 and the large 4 per cent. loan or 1907
would inevitably be paid or refunded by the
government before a per cent. bond would
be redeemed, makes bond that can be re-
deemed at the end of ten years as desirable
to issue as one that can be redeemed at the
end of five years.
I'm view Of the fact that It will be neces-
sary in few weeks, before the proposed
war taxes can bring results and before the
loan authorized can be placed, to provide
means to meet the rapidly augmenting Wa-
expenditures, authority is given the secre-
tary of the treasury to temporarily borrow
money, in no case exceeding one year by
the issue of per cent. certificates of in
debtedneSS. 1t is important that the secre-
ity in any exigency that may arise in the
future"
The war revenue bill contains three
changes from the bill as originally drafted,
as follows: A discount of per cent on
beer stamps is allowed after the passage of
the act. Telephone messages are subject