Evening star. [volume] (Washington, D.C.) 1854-1972, 1898-05-27
MONEY FOR THE WAR
MIR. Teller Speaks on the Revenue
Bill.
FOR INCOME TAX and GREENBACKS
Mr. Nelson Opposes the Issue of
u. S. Notes.
BON ING BILL PA So ED

Soon after the Senate convened at IL
o'clock this morning 1Ir. Carter reported
from the military affairs committee bill
providing for a second assistant secretary
of war, 10 be named by the President, and
to receive salary of $1,000
When the bill was placed on its passage
Mr.. Bate TENN ST ggested the absence Of
a quorum. not more than eight or ten SEN
ators being in the hanber-
After delay of fifteen minutes, quor
I'm was secured and the bill was passed
Consideration of The war revenue meas
ure was resumed, Mr.. Teller taking the
floor to continue his speech begun yester-
day.
In concluding that part of his argument
in favor of an income tax Mr.. Teller said
that II tEe proposition were submitted to
the Senate he would feel bound to vote for
it, despite the decision of the Supreme
Court against the law of 1894 Such a tax.
he said. was supported by five decisions of
the Supreme Court prior to that upon the
law of 1884.
Il have no reason to suppose" said he.
that the court may not yet return to its
former decisions; indeed, l have every
reason to suppose that il Will.
Coming the Seigniorage.
Mr.. Teller then began a discussion of
the proposition to coin the silver seignior-
position. He declared the seigniorage could
be coined without detriment to the public
service.
II amounts to So OOo 900, and the people,
said he need the money. 1t has been paid
for and the people have right to use 1t.
Ii could be issued safely as could S42,-
V1.ts0 of gold. and by the coinage of the
seigniorage the government would save the
interest the full amount coined.
Mr.. Teller then entered upon an elaborate
argument in favor of the issue of S1J0,
100000 OF legal tender notes He thought
there was no possible doubt of the right Of
the government to issue legal tender notes.
If the issue of $50, o0o.ODD of such notes
would disturb business he would hesitate
to give the proposition his approval, but
he did not believe a single senator would
maintain that surplus of money in the
country would be created by the addition
to the present supply of S150Ooo,OOo.
Greenbacks or Bonds.
He was opposed TO the issue of bonds as
unnecessary and dangerous.
The question, he thought, was now fairly
presented as to whether the government
should issue greenbacks or bonds, and he
believed not one in hundred of the people
We're in favor Of bonds.
Those who ought to know said Mr.
Teller, estimate that the present war will
cost S}'OOOO.OO0 II it be prosecuted for one
year. II ought not to last a year; it will
not last a year. 1t is not a war of con-
quest. but a war of humanity. However.
since We have taken the Philippines we
ought to hold them until some decision can
be reached 5 TO their disposition We
ought 10 take every foot OF Spanish soil,
outside of Spain Itself, whether il be in this
hemisphere or in the other. We ought.
believe. 10 drive the Spanish flag from the
waters of both the Atlantic and Pacific
oceans
Mr. Nelson Against Greenbacks.
Mr.. Nelson (Minn) regarded the pro-
posed issue of greenbacks as one Of the
M st important features of the bill. He
declared that of all the loans made during
the civil war the forced loan covered by
the greerbacks was the most expensive.
The proposed issue of legal tender notes
was not called foe by any lack of money in
circulation. the per capita circulation
was now higher than at any time since
1s.'2. ard only IL cents lower than it was
then He felt that the notes, if issued.
would he an added manacle to the treas
ury and that il would enable those so In
clined to deplete the gold reserve and rem
issue of bonds
Closing. Mr. Nelson declared that in any
way it might be taken. the view of the ma
jority Of the finance committee was wrong
and could not b. safely followed.
Mr. CockreH followed Mr.. Nelson. lie
contended that the bill, as reported, in
GLIDING provisions for the coinage of the
seigniOrage and the issuance of treasury
notes and the elimination of the bonds
would provide sufficient revenue for the
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