The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-04-06
But We Could Not Garry ON Hostile
titles Long without Resorting
TO Issue of Bonds.
Mr.. VANDERLIP'S STATEMENT
HOW REVENUES MIGHT BE IN
CREASED BY TAXATION.
Prepare tiOns by the Navy and War
Observation-Disclosures of ships
Proposed Camping Ground


WASHINGTON, April 5.-"While the
Navy and War Departments have necessar-
lily been much in evidence in the making OF
preparations for the possible impending
conflict between the United States and
SPAIN said Assistant Secretary Vanderlip.
the Treasury Department has not been be-
hind in giving close attention to what is
quite as essential as battle ships, namely,
the national finances as they relate to war.
Recently ex-President Harrison said: The
Treasury Department is tho steam plant
from which all other departments get their
power While battle ships are being over
hauled, repaired and made ready for action.
the officials Of the Treasury Department
have been going over this power-gener-
ating establishment of the government,
looking into the history of past conflicts,
seeing what its organization is capable of,
measuring new conditions represented by
the Increased wealth and population Of the
country and generally making complete
preparation for speedy action In case of
necessity. When war comes new influences
operate upon the public revenues.
THE first boom of cannon is call for
increased resources, and is likely to be fol-
lowed by sharp decrease in ordinary re-
ceipts. Fortunately, at no time since the
civil war has the United States treasury
occupied so strong a position as it does now,
with the exception possibly of the surplus
days of 1SS5-9O. The circulation statement
of the Treasury Department issued April
shows that we have an enormous stock
of gold in the country, almost $3.50. 100000.
OF this amount the United States treasury
holds $1750O 900 net gold. We are S5.oOO.OOO
1tnfy1 y1<aa
the redemption of the United States notes
and the notes of 1890, and the tendency Is
towards an increase at the rate of 100000
day. About 10 per cent of the customs
receipts are being paid in gold.
Contrast the condition of the govern
ment at the outbreak of the civil war July
/. 1861, the United States treasury had but
50, ,S62, 900 sold and scarcely any other kind
of money. To-day our cash balance or
S226. .OOO. 600 is n per cent. in the yellow
metal. In 1861, from August to November.
the treasury had to resort to the associated
hanks of New York, Philadelphia and Bos-
ton. The banks of these cities held only q
small amount in gold, and yet they fur
rished practically $50, 100000 in gold to the
treasury. The government then began It's
paper issues and these, added to the strain
on the banks specie reserve, resulted IN the
suspension Of specie. payments by them In
December of that year.
A MARKED CONTRAST
'gThe situation between that period ana
tba nresent is in marked contrast. OF the
great stock of gold in the country the ma
tional banks alone hold more than $2z0,-
Ono nm Since the disaster to the Maine in
Havana harbor banks throughout the
whole country have quietly pursued policy
which. without disturbing business, mas
made them financially strong (not less I'M
portant to the country's welfare than I'M
nregnable Notifications and coast defenses.)
since Feb 49, the week of the Maine ais
aster. the New York banks have reduceu
their loan accounts by $5OOOO,0OO and at the
same time they have increased their specie
holdings by $25000,OOO. The contraction III
the loan item represents, to a considerapie
extent. liquidation at the stock exchanges
and the sale of sterling exchange coiaterai'
hut back of it all there has been the strong
tendency to fortify against the uncertain-
Ties of the future. What Is true OF rev
York banks is generally true OF oanAs
throughout the country. Their pohcy lor
six weeks has been TO prepare Tor straan'
and il would seem that they are wen pro-
yided for all contingencies
"But, notwithstanding the strong hhaIiclai
nosition of the government, ana OF the
moneved institutions of the country, there
would in any sort of conflict, soon be ne
cessity for additional revenues. rms mas
GIVEN grave concern to those charged with
the administration of the finances OF the
yovernment. Unquestionably, II war should
come our victory should be the placing OF
the national treasury upon war basis. Ex-
fc of
importance We have recently noted the
exnerience of a little delay in passing
tariff bill which resulted in abnormal
heavy importations to such an extent that
not until a month ago did the new tariff be-
gin 10 give promise of a sufficient revenue
to support the government. Since, however,
n resort TO increased taxation is, when ac-
companied by the utmost expedition, rather
a slow process there should be some means
existent whereby the government could
raise more funds more speedily A tenn
porary loan for, say 100000 600. TO be mace
i'm the form of treasury notes, limited to a
time not longer than one year, TO bear IN
terest at the market rate might be of great
advantage TO the government in an emer-
gency. Such authority was asked for by the
President when Congress convened. The
treasury has ample facilities and agencies
for financing such a loan. With the neces-
sary authority, loan for that amount
would be subscribed, il is believed. with
rapldity.
A LONGTIME LOAN.
1T is believed by the best authorities that
a long-timo loan could be negotiated among
our own people for an amount as large az
$500 900, ,O09-~a $40 loan. say. at per cent.
IN the present state of finance, such bonds
could be negotiated among our own people
at par. Loans of these kinds, to take ths