The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1898-05-13

Involved in the internal revenue features
of the two plans, there is no conflict OF
principle, the difference being one Of ad-
justment. Some of the rates provided by
the house were raised. some lowered,
some entirely eliminated, and a number
of new features were introduced. The
changes made In this respect may not
materially effect the amount Of money
to be taken directly from the pockets Of
the people, approximately $150.000, 600
each year that the levy is made. The ad-
dition of small tax upon the gross re-
ceipts of corporate companies. Demo-
cratic device, will, of course, be antag-
onized by the trust organs throughout
the country, for, small as the proposed
tax is, 1t will be considered onerous by
the pecuniary point of.view, as from its
inquisitorial feature. The corporations
will endeavor to recoup the tax, and they
may easily do it, by increasing the prices
making the consumer pay the tax, but
they will combat the right Of the gov
eminent to inquire into their business
transactions, to require a sworn state
ment Of their revenues. 1t was this
feature of the income tax levied and col
lected during the war that made 1t so
obnoxious to the rich. 1t may be noted,
in passing, that the Democratic measure
oto;~ -;cio for hn oil tor,
of tax upon incomes, though the in
heritance tax clause is retained.
The seigniorage clause may need lit
tie explanation, although 1t is in no sense
involved. Upon every dollar coined under
the act of 1890, providing for the purchase
and coinage of 100000 worth of silver
bullion each month, the government was
entitled to absorb the difference between
the cost Of the metal and the coinage
value. This is called the seigniorage,
and before the minis were closed to the
coinage of silver dollars 1t was carefully
set aside for such use as the govern
ment might eventually make of it, and
is not now represented by any form
Of representative money in circulation.
There can be no question regarding the
right Of the government to use it. The:
wisdom of using it in this emergency
would not seem to be debatable. 1t ag-
gregates $42,00O,0O0.
The main divergence, and the one in
which the people are most interested, is
upon the issue of interest bearing bonds.
and the resort once more, as war
measure, to the printing press for the
creation of paper money, which is nom
inally forced loan, but which. let NJ
enc for moment doubt, will be abund-
antly provided for In due time. All
classes Of people save those who deal In
money. it may safely be assumed. are
opposed to the further increase of the
interest-bearing indebtedness of the ma
ton. The Democratic, Silver Republican,
Populist, and even the Republican plat
forms, Of the past two years, have all
Numbered against further bond issues
and the dominant party sought to make
and fairly succeeded in making, a grea;
deal of political capital out of the acts
Of the Cleveland administration In selling
bonds to replenish the treasury. The,
only preteXt for the resort to it now
is the alleged necessity for speedily re-
alizing upon the nations credit in the
raising of war revenues. The admins
tration wants lots Of money and wants
it quickly, and the men who have it to
loan. and who will stand to make millions
out of the country's necessities, have per-
suaded the president and his advisers
that the funds can be secured in no other
way, and that disaster will follow any
other course than the one proposed by
the party leader in the house.
If tho Democratic scheme is adopted,
the expense incident to the war-whether
it shall last six months, year, or b.
prolonged over a number Of years-will
to be paid by a direct tax upon the people,
in which corporations will be made to
pay their fair proportion. The people
who inherit wealth. instead Of earning
it by the sweat Of their brows, will also
be compelled to contribute literally to
the war chest, while those who indulge
in luxuries will be asked to pay for the
privilege of doing so while others fight
the battles of ths4olnt93 btfk pay
as-you-go" plan. When the war is ended
the taxes may be discontinued, and that
will be the end of it,
If the Republican plan prevails, We
shall not Only be taxed directly, as under
the other scheme, but we shall be saddled
with an additional debt of $500. 900, 900, the
interest upon which, running thirty
years, will equal ninety per cent of the
principal, or nearly double it. The prin-
cipal and interest of the new debt thus
proposed will aggregate sum in EXCESS
of the total Understanding obligations
Of the government at the present tina
AS to the relative wisdom Of the two
plans there would seem to be. no chance
for division. 1t is unfortunate that
there should be political division. But
no other alternative was left to tbs
Democrats. The house bill was drawn
exclusively by Republicans, considered
i only by the Republican members of the
committee democratic members being
excluded from the meetings), and rush
ed through Republican house by Re-
publican steering committee, as party
measure. Democratsin the senate could