New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-04-26

~ MANIA ftBLit NEDiI
The War Tax bill embraces in two sections
2S and 20. ample and. on the whole. satisfactory
provisions for ma intcnancc Of the public credit
in any emergency. In Section % the issue OF
coin bonds IS authorized 70 any amount not OK
ceeding $500, 600 OO0 bearing interest al 3 per
cent, redeemable at the pleasure Of the United
States ten years from date and payable twenty
years from date. with the usual exemption from
National, State or local taxation. II IS wise that
the amount IS not moro restricted although Il IS
scarcely proba BILE that so large an ISSUE Will be
required and perhaps no issue may prove neces-
sary. For II might he in tho last degree embnr-
raising 10 the Government. should war be pro
longed extended by unwarrantablc acts OF
other Powers, TO be compelled 10 walt for FUR
Their Congressional action in any sudden emer-
gency. None Will seriously critlclSe the prOvi-
sion for bonds payable in coin, rather than in
gold coin. who consider that the proposed form
IS exactly that upon which over 500 OOO.O
was offered TO the United States when the last
popular loan OF S1O00OOOOO was invited and
that n different phrascology would certainly
cause prolonged debate and delay and probably
prevent the passage Of the bill in the SENATE
II Is not n credtablc fact, but the Government
has TO deal with facts
Section 20 may perhaps serve n little modi-
fed, to render any issue OF bonds unnecessary.
unless the war with Spain Is prolonged II pro-
vides for borrowing not exceeding 500. 600
on certificates Of indebtedness Mt the market
rate OF interest, hut not exceeding 3 per cent.
The latter provision is obviously oIen to crlti-
cism, since tho authorization is distinctly In
tended 10 meet the immediate needs Of thc Gov
h.. 81,
forest is not unlikely to rule above 3 per cent,
nor Is there any discovcrable reason for confn-
ING the Secretary as TO the rate paid further
than by the stipulation that he shall pay no
moro than the current market rate. II the
money IS not at the moment necessary to meet
emergencies an honest Secretary can he trusted
to walt for a more favorable time for borrow
ing, but II II is needed for any emergency no pa
triotic citizen would hesitate because the amount
at the moment required would cost more than
Ter cent interest As these certificates do not
appear to be exempt from taxation, rs the bonds
are. their acceptability in tho money market at
rate not higher than 3 per cent might be
seriously affected but this also could be rene
died by Il slight change.
With power 10 borrow not over 500 900 900 on
certificates at the market rate, and with e1-
pected increase Of revenue by S9O,OOO,OO0 year
". the Government would have Mt comma nd
over 5000 900, 900 beyond the sum needed for or
binary expenses to carry II through a year. IL
the contest should last so long While II would
be folly TO base provisions for public needs upon
any estimate Of the duration of the war II IL
not generally believed that Spain can continue
the struggle a year, nor would her influential
creditors In other countries hesitate 10 press her
Government TO make peace before total bank
ruptcy and overthrow of the existing dynasty
should result Within much less than n year It
will probably be determined what colonial pos
sessions, If any, Spain can retain, and 10 what
extent her navy Is able To maintain itself at
sea- Hence, while making necessary provision
for more prolonged struggle. It seems not I'M
reasonable to hope that the war may he finished
before the temporary provision for expenditures
has been exhausted The Government now has
on hand besides the gold reserve. over Sl2O,-
600 600 of which only part has been pledged
by contracts made rs yet. though another part
is not practically available because large sums
must be kept On hand 10 meet demands at varl-
Gus Offices Yet after all allowances, the Gov
eminent would have ut demand considerably
over 5000 600 600 for the first year, if the new
revenue law should answer expectations.
1t seems an appropriate time to call attention
once more TO the dlsloyal fnlsehood often re-
peatcd even now. when It's only end can be TO
give encouragement TO foreign foes, that the
revenue under the existing law falls S350O0OOO
to $500 900 behind expenditures. All intel-
gent men know. and all honest men freely adj
NIT, that the anticipatory Imports deprived the
Government Of many millions Of revenue dur
ing the first six months under the new law. The
actual receipts in February and March were
more than S1OOO,OO0 a day, and in April thus
far have been about the same, notwithstanding