The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1898-09-06
LOOMING UP.
A Big Surplus i'm the Treasury
Inevitable.
Cost of the War Far Below Ex-
pectatiOns.
THE REVENUE Ia
Is Almost Sufficient to Pay Cur.
rent War Expenses
And EVenThat May Soon Be IN
necessary.

Washington, Sept. 6.-The cost of the
Spanish war promises to be considera-
bly, less than the liberal provisions
made by congress, and the treasury is
already feeling the embarrassment of
excessive riches. So much gold and so
many notes are locked up in the treas
ury and its branches that the banks
are having great difficulty in meeting
the demand for small notes, and legis-
lation for reforming the currency or re-
ducing taxation will almost certainly
demand the attention of congress next
winter and spring.
The cost of the war, including the
maintenance of garriSOnS in Cuba, POr-
to Rico and the Philippines, until the
close of the present fiscal year on June
30 next, seems likely to drop below
$2S5, 100000. The sum of $50, 900, 900 was
computed cost in actual disbursements
up to the close of June. The month of
July added about S35, 000, 900 to this
amount, and August about S25 900, OOO
These com bined sums make a total of
$115,OOO0 600. There are many contracts
which have been executed, but for
which payment has not been made, and
many other expenses which will run on
for some weeks at the same rate as
during the period of active operations,
but the mastering out of many of the
regiments, the cessation of the use of
costly ammunition and the sale and
transfer of vessels Of the auxiliary
fleet will cOnsidera bly, reduce expendi-
lures during the remainder of the year.
An estimate of $40, 000 900 per month, in
addition to the cost of the ordinary
peace establishment is considered at
the treasury to be a liberal one for
September and October. The average
cost of settling the war expenses and
maintaining garrisons during the eight
months Of the fiscal year beginning on
November is not likely to exceed $40
100000 per month. It might be a trihe
larger than this during November and
December, but will probably taper to a
lower point during the months which
follow The war expenses during the
remainder of the fiscal year may, there
fore, add S120, 900, 900 to the Sis, OO0 900
already spent, making the total cost of
the war $235, 100000
Against these estimated expenditures
the government has to set two large
items of extraordinary revenue, the sale
of 5000, 600, 900 in 3 per cent bonds and
the collections under the new revenue
law. The latter were about S13, 0O0, 900
in July and $12, 100000 for August. If
they continue to average $12, 900, 900 per
month, the total collections at the end
of the fiscal year will be about $140,-
600, 900. These two large sources of rev
enue, therefore, exclusively for war
purposes, will afford a total for the
year of $40, 900. 600, or an excess of $105,-
100000 over the probable cost of the
war.
The treasury balance on March 81
when expenditures for the war first
1925, 166, 944. The surplus derived from
the bonds and the reVnue will swell this
balance at the close of the fiscal year
to about 1891, 600 900. The fact that this
amount will be attained is already well
established by the existing condition Of
the treasury
lected to the amount of only about $50
600 900, and $45 000, 900 remains to be paid.
The cash balance on August 81 was $685.,
S14,806, and if the entire proceeds of the
bonds were received at once, the amount
not be quite attained at any time, but a
total of 1925, 900, 900 is very nearly in sight.
it is once reached. The current monthly
receipts from the new revenue law will
sons in the former Spanish dependencies
and the treasury will have on hand the
ing of more than two-thirds in gold.
While these figures represent the prob
mainder of the present fiscal year, there
are elements of the problem which may
figure, if some of the surplus is not got rid
of in the meantime. One of these ele-
perity, which will greatly increase the col |
lections of revenue under old laws. 1t
culations that the ordinary expenses of
the government in time of peace would
laws Assistant Secretary Howell has al
ready computed a surplus under these
months ending with June last. If a SIM
liar surplus should continue it would add
at the close of June next. A growing vol
ume of imports and an expansion of bust !
ness activity would swell this balance in |
the same manner in which the revenue was !
sWelled in the prosperous years during the |
latter part of Mr.. CIeVelands first admin
istratiOn. A surplus of $50 900 would |
not be an excessive estimate for the pro-
ceeds of old laws in period of business
activity. If this should occur. the treas |
ury would find itself on June 80 next with |
a surplus approaching 1886, 600, O00 and the |
would cry out in alarm over the
of the money market, caused |
by the withdrawal Of currency from ac-
tive circulation. More than this, it is
not impossible that the expense of garri- !
son service in the new dependencies will |
be reduced to almost nothing by the col |
lection of the necessary funds from the |
subject coun tries. Gen. Shafter has al |
ready telegraphed to the War Department !
that he has collected 100000 at Santiago |
in customs duties and navigation charges
during part of August, and that the To- |
cal expenses for the custom house and !
the municipality have been only about
So CO., If the handsome net revenue |
thus indicated for Santiago should be !
duplicated at Havana, San Juan de Porto |
Rico and Manila, the treasury might be |
relieved of the expenditures of $4,000, 900 |
per month set down for garrison from !
November till June, and another sum Of |