Kansas City journal. [volume] (Kansas City, Mo.) 1897-1928, 1898-05-07

the deficiencies in the war and navy de-
partment were met there would be an
available balance of $9l000.OCO. The treas
urer estimated that he must have $50, co.,
OtO for, a working balance from day to day.
This would leave now only $29.000,00O of
available net cash in the treasury, but for
the fact that there were some liabilities
that would not be pressed. He thought
that all told. the treasury could count up
on available cash to the extent Of $1,000
COO above the 800 1000. .o0O gold reserve.
Mr.. Gage stated that. at the time his
testimony was given. none of the volun-
teeT forces had become a tax upon the
government. but the entire 125,00O men
would have to be taken care of within a
months time. The best estimates placed
the extraordinary expenses for the war
and navy departments at $52. coo up to
July !, next, in addition to the $5O,0O00N
voted for national defense. He thought
that from $40 10000 to $50, co.. in addition
to the ordinary revenues would have to be
realized between now and July l to pre-
serve the gold reserve intact. Without
this extra fund he thought the reserve
would be reduced to the extent of $4,000
co., leaving in the treasury only s10,ooo.oO0
all told at the end of the fiscal year.
Nj. Gage said he knew of no other meth
cd for raising this extra money except by
taxation or the sale of bonds. Senator
Turpie asked II he could think of no other
method.
II cannot think of any other to which I
think 1t would be proper and safe for the
government to resort. except by the issu-
ance of treasury certificates. l think it
Is legitimate operation to borrow in any
way you can make it acceptable to both
parties to the contract
rain IN iSE
innate Of the expense of the war after
July l, because he had no data from the
war and navy departments, but he gave
the committee what he called guess"
based on the best information obtainable.
placing the figure at s25.OOO.oOO month.
in addition to the ordinary expenses.
Mr.. Gage expressed the opinion that 1t
would be impossible to place as much as
$l0G. 0Oc.GC0 of the loan among individuals
and in small sums. Explaining his reason
for this opinion. he said: "Our people are
very different from the French people, If
you please. in whose country there are no
savings banks. In our country there are
5ctn.S0o people who have money in savings
banks at general average rate of interest
Of per cent. The money is available TO
them at any moment. The temptation and
self interest to invest in 3 per cent bonds
and disturb their little balances in the
savings banks is not very great.
I'm France. the individual has money. his
little savings slowed away in a stocking
or a sack or a private hoard. 1t is in cash.
1t is drawing no interest. generally, and
when the government puts out 4 loan it is
his opportunity. Our people have larger
opportunities. That is the principal reason
why l think the whole 900 will not
be taken by private persons"
To this statement Senator WolcOtt took
exception saying:
The secretary allows nothing for the
patriotic desire of the people to support the
government and take bonds at less in
terest than they can get in savings bank.
He assumes they would be governed esire-
ly by selfshness.''
to what proportion of these bonds will be
taken by individuals. / don't think my
opinion is worth any more than that of
any other gentleman here. but l do not
believe the whole slO0.G0O,0G0 will be sub
scribed or offered. for by individuals. may
be mistaken. l sincerely hope l am
Senator Wolcott: "Then If $5OO.OOO0OO
should be offered, you think that much less
than 500 600 would be taken by individu-
ais: is that your idea?"
Secretary Gage: II think the quantity Of
fered would not make very large diff
ference in the quantity taken by individu-
ais"
The secretary recommended that the in
terest on the bonds be made payable every
four months, instead of quarterly.