New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-04-06
FINANCIAL SIDE OF WAR.
utr VIEWS OF ASSISTANT SECRETARY
VANDERBILT.
.rrp o. ADDITIONAL REVENUE AND WAYS IN
WHICH IT MIGHT BE RAIsEp-A LOAN

,,-ar Uaoartnent have necessarily oeen
-. s, evidence IN the making az preparations
no nossibly impending conflict between the
voted states and Spain" said Assistant oeCre-
cow, Vanderlip today the Treasury Depart
-. has not been behind in giving close at
.ion 70 what is quite as essential as nat'!e-
49, a,o,v the National finances as they
-c,ate 20 war Recently ex-fresaeh' HARRISON
.ot5. Tho Treasury Department is the steam
,.s-, from which all other departments get their
- While hatte-ships are being over
,,,,d ranairad and made ready for action, the
@s-ta,s - The Treasury have been going over
49,, ,,,,rsr-generating establishment Of the
=, mont looking into the history Of past
lo,atc,s seeing what It's organization is capable
49,. measuring new conditions represented by
,to increased wealth and population OF the
o,,,.-, and generally making complete prep
aro,ior for speedy action in case OF necessity.
VIZ, VA comes new influences operate upon
80 ,rhllc revenues. The first boom Of cannon
.s . call for increased resources and is likely
~ ha followed ny sharp decrease In ordinary
receipts.
THE TREAsURY's STRONG POSITION.
FORTUNATELY. at no time since the Civil War
,,s The United States Treasury occupied 40
s,-ong a position as Il does now. with the eX-
lo,,,on POSSIBLY q the surplus days Of $500.
rra circulation statement ~ the Treasury De-
rartrnert issued April shows that We have an
enormous stock OF gold in the country. almost
S73n OOO 900 OF this amount the United States
Treasury holds S175OC00OO me- gold w are
S75.ooO000 above the traditional reserve main
tanned FIR the redemption # the United states
notes and the notes Of 1890. and the tendency
q toward an increase NJ the rate of 100000
dav About 10 per cent OF tho customs re-
ceipts ara being paid in sold.
Contrast the condition Of the Government at
the beginning Of the Civil War on July !. 1861.
the United states Treasury had but s. So 900
gold and scarcely any other Kind Of money.
To-day our cash balance Of $226O0o 600 IS -
per cent in The yellow metal. In 1sGl. from
Angus, 10 November. the Treasury had 20 re-
sort - the associated banks Of NewYork. Phila-
de'phia and Boston. The banks Of those cities
he'd only d small amount in gold and yet they
furnished practically S15O.ooo."oo 20 the Treas
ury In gold. The Government then began It's
PAPER issues and these. added to the strain on
the banks specie reserve. resulted in the sus-
pension Of specie payments by them in Deem
her of that year.
The situation between that period and the
present Is in marked contrast; OF the great
stock Of sold In the country the National banks
alone hold more than 5000 100000. Since the
disaster 70 the Maine in Havana Harbor banks
-hroughou, the whole country have quietly pur-
sued a policy which, without disturbing bust
ness. has made them Financially strong mot less
important 70 the country's welfare than impreg-
ma BILE fortiFcaticns and coast defences) Since
February 10 the week OF the Maine disaster. the
Network banks have reduced their loan
counts by so 900 900. and at the same time they
have increased their specie holdings by 5000.
600 The contraction IN the loan item repre-
cents 20 a considerable extent. liquidation at
the stock exchanges and the sale Of sterling
exchange collateral. but back OF Il all there
has been the strong tendency to fortify against
he uncertainties OF the future. What is true
Of New York banks is generally true OF banks
throughout the country. Their policy for SIX
We ks has been 70 prepare for strain. and q
would seem that they are we'll provided for a..
contingencies.
NEED OF MORE REVENUE
Put notwithstanding the strong financial po-
sition 81 the Government and Of the nloneyed
Institutions az the country. there would IN any
SOFT OF conflict. soon he necessity for ada-
tional revenues This has given grave concern
- those charged with the administration Of the
finances If the Government. Unquestionably. IL
war should come. our hrst victory should be the
placing Of the National Treasury upon war
basis.
Expedition in this direction IS Of the utmost
importance. We have recently noted the ex-
perience # little delay in passing tariff
BILL which resulted in abnormally heavy i'm
portatiOns 10 such an extent that not until a
month ago did the new tariff begin TO give
promise q a sufficient revenue TO support the
Government. Since. however. resort 20 IN
creased taxation is. when accompanied by the
utmost expedition. rather a slow process. there
should be some means existent whereby the
Government could raise funds more speedily.
y temporary loan FOR. say, 100000 600 10 be
7nad@ n the form Of Treasury notes limited 70
4 Tine not longer than one year. 70 bear in
terest a. the market rate. might be Of great
advantage % the Government. in an emergency.
Suca authority was asked for by the President
wnel congress convened. The Treasury has
AMPLE facilities and agencies FOR financing such
q loan The necessary loan FOR that amount
would ~ subscribed Il II believed. with rapid
q longtime loan could be negotiated among
olf own people for an amount large
S.v0poNo"O-a 30 loan. say, at 2 per cent In
the present state % finance such bonds could
BE Negotiated among our own people AZ par.
INTERNAL REVENUE TAXATION
Loans Of this kind. TO take the place 81 the
necessarily slower means Of raising money by
taxation. Nigh, he followed by some important
increases in the Internal revenue schedules az
well as some additions 20 the items OF the GUS
toms tariff We have been looking into the
Operation Of the internal revenue act in force In
I"f6 1t produced. during that fiscal year.
revenue to The amount OF $3l0OOO.OOO OF
course. II is not probable At all that there would
De a return 10 The heavy taxation II those times.
We would not have TO make the effort now 10
false S3lOVOpD a year that vas made IN
lN'o We have doubled IN population since
Nen. and more than doubled IN wealth. The
internal revenue schedules In force a. this time
subject 20 taxation distilled spirits ferTnented
Hquors. tobacco and SNUFF, OleOmargarine, nlled
cheese. opium and playing cards These items
the last fiscal year produced Sl37 100000 IN
revenues. An addition OF 81 a barrel to the tax
o. beer would add $35.OOO.O0O year to the pub
4 L.