The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-04-06
MONEY TO WAGE A WAR
QUESTION GIVEN CONSIDERATION
BY TREASURY OFFICIALS
One Hundred Millions Gould Re
Raised RS a Temporary Loan on
Treasury Notes, and a Bend Issue
of Five Hundred Millions Could
He F.Oated Without Great Diff
Guilty in the United States.

WASHINGTON. April 5-"Whi.e the navy
and the war departments have necessarily
been much in evidence in the making of
preparations for the possibly impending con-
flict between the United States and Spain. -
said Assistant Secretary Vanderlip, 1.-The
treasury department has not been behind in
giving close attention to what is quite as es-
sential as batt-eships namely, the national
finances as they relate to war.
The first boom of cannon is a call for in
creased resources. and is likely to be fol-
lowed by sharp decrease in ordinary receipts
Fortunately, at no time since the Civil war
has the United States treasury occupied so
strong position as it does now, with the
exception possibly Of the surplus days OF
1850
1.-The circulation statement of the treasury
department issued April shows that we
try, almost $3.50, 100000. Of this amount the
United States treasury holds SITS, coo, 600 net
god. We are S7o. eco 0G0 above the traditional
reserve maintained for the reclamation of
1890, and the tendency is towards an increase
at the rate OF $780, 900 day. About To per
cent Of the customs receipts are being paid
in god
Since the disaster to the Maine in Ha-
vana harbor, banks throughout the whole
country have quietly pursued policy which,
without disturbing buSiTe SIS, has made them
financially strong mot less important to the
country's welfare than mpregnable fortifica-
lions and coast defenses). Since Feb. 49, the
week of the Maine disaster, the New York
banks have reduced their ,oan accounts by
S50,O0O0 GEO, ard at the same time they have
increased their specie holdings by So, 900 co.,
the contraction in the loan item repre-
sents. to a considerable extent, liquidation
at the stock exchanges and the sale of ster-
ling exchange collateral but back of II all
there has been the strong tendency to for
Try against the uncertainties Of the future -
Banks Strong.
What IS true of New York banks is gener-
| ally true of banks throughout the country
rt0fr ,n1fn for -s,r
pare for a strain and it would seem tina;
they are we'll provided for all contingencies
But. notwithstanding the strong financia
position OF the government, and of The
moneyed institutions of the country there
would. in any sort of conflict. soon be a neces-
| sity for additional revenues. This has efyer
grave concern to those charged with ths
administration OF the finances OF the govern
ment Unouestionably if war should come
our first victory would be the placing Of
| the national treasury upon the war basis.
"A temporary loan for S1C0, COO Geo to b.
made in the form of treasury notes. limited
to time not longer than year. to bea1
| interest at the market rate. might be O.
great advantage to the government in a.
emergency. Such authority was asked for b,
the president when congress convened. The
treasury has ample facilities and agencies
| for financing such loan With the neces-
sary authority loan for that amount would
be subscribed. it is believed with rapidity
1T is believed. by the best authorities, thai
long time loan could be negotiated among
our own people for an amount as large a;
$500, 0OO. Goa $40 loan, say, at per cent
In the present state of finance, such bond:
| could be negotiated among our own people
| at par.
| Loans of these kinds to take the place OF
! the necessarily slower means of raising money
by taxation. might be followed by some i'm.
portant increases in the internal revenue
schedules. as we'll as some additions 10 the
! items of the customs tariff
| "A slight increase in the tax on tobacco
| and return to the system of special take,
| and licenses in vogue a few years ago would
! contribute much to the revenues without
| greatly adding to the burdens of anyone"