The record-union., 1898-04-27
The Report of the Ways and Means
Committee
Submitted to the House Yesterday By Chair
man Dingley.
Provides WAYS and Means to Meet
War Expenditures on the Scale
Demanded by Modern Naval and
Military Operations.

Military operations.
WASHINGTON, April 2G.-Chairman
Dingley of the Ways and Means Com
mittee to-day submitted TO the House
with the war revenue bill the following
report:
The precipitation on the United
States of war with Spain has rendered
3 it necessary to Immediately provide
ways and means to meet war expend-
itures on the scale demanded by modern
naval and military operations. Suc1
an unwelcOmed demand on our re-
sources comes at q time when, under
the workings of the tariff Act OF July Il,
1897, we had begun to overcome in large
measure the injurious effect OF antlcl-
patory importations, and had already
received in the months Of February and
March revenue more than three millions
. in excess of ordinary peace expenditure
for these months -four millions of the
expenditures appearing in the March
statement having been made on ac-
count of the preparations of national
defense under authority of the joint
resolution of March, 1899, and that,
too with a large falling off of customs
revenue the last ten days of March, in
. consequence of the disturbance Of trade
arising from threatened war.
There is no doubt that if peace
conditions had continued, the estimate
o. the Secretary of the Treasury that
the revenue of the next fiscal year would
reach 1890, 900 GOO, exclusive of postal
receipts-S63, 900, 900 in excess of the
revenue for the fiscal year 1896. and
more than that sum in excess of what
the revenues for the next fiscal year,
1897, would have been if it had not been
for anticipatOry importations in the
last four months of the latter year to
avoid the increased duties of the new
tariff, would have been more than real
lied, and these receipts would have
fully met the expenditures for the next
fiscal year if it had not been for the in
crease caused by the difficulties with
Spain, inasmuch as the expenditures for
the fiscal year 1896, exclusive of postal
expenditures paid by postal revenue,
Were only 500, 100000, and for the fis-
cal year 1898 only $3.50, 600, 600.
These difficulties. even before war
conditions arose. had so stirred the
public mind as to demand largely in
creased appropriations for charging
the navy and for national defenses. The
destruction of the United State battle
ship Maine in the harbOr of Havana on
the 18th of February last co intensified
this country that Congress a few weeks
afterward realized the necessity of TAX
ing prompt measures to prepare for any
exigency. and by joint resolution APP
propriated $4,000, 900 for national de-
Tense. Upon the authority of this joint
resolution about So, 100000 of this APP
preparation has already been practically
used, although payments have as yet
been made for only part of this sum,
and liabilities for the remainder of the
appropriation which has been incurred
within two weeks.
An examination of the condition of
the Treasury will make it apparent that
no time should be lost in providing
ample ways and means for carrying to
a successful conclusion the war in
which we are now engaged.
The apparent cash balance in the
Treasury when the joint resolution ap-
propriating $50,000,000 for national de-
Tense was passed was about S225 0O0,-
600. including the 100000, 900 redemp-
tioE fund, or S125. 600 900 excluding that
fund. But this balance was only APP
parent, inasmuch as $13,000,000 con-
sisted of fractional silver, largely I'M
current and minor coins, leaving only
$112,OO0,000 But of this amount Sill
100000 consisted of receipts from the
sale of the Pacific Railroads, held in the
Treasury for the payment of that
amount of Pacific Railway bonds due
January LIST next, and $33 000,0 of the
bank redemption fund held for the pay
ment OF the notes of national banks
failed and in liquidation or reducing
circulation. Deducting these amounts,
and the actual available cash in the
Treasury at that time belonging to the
Government, exclusive of the greenback
redemption fund, was only S65, 000,00
1nasmuch as a working balance of
about S40,000000 is required to prop
erly carry on the operations of the Gov
eminent, there remained only SO, 900
600 belonging to the Government avail
able in meeting the SOC, 100000 appro-
priation 1t will be necessary to meet
all the expenditures under the $50 0O0.-
600 appropriation-all of which have
been expended within a few weeks-to
use $25,0O0,00 of the bank redemption
fund, part of which must be replaced
before the close of the present calendar
year.
The expenses of the preparations for
defense that have been going on for
nearly two months are at the rate of
$25,000.000 per month, or 100000 900
per annum, and the expenses of actual
war will be more.
Your committee recommends the
levying Of internal revenue taxes. either
on articles of voluntary consumption
or on objects that will make such taxes
fall mainly on persons able to con-
tribute to the national defense, which
will in the aggregate yield from ninety
TO one hundred millions in addition TO
the present revenues.
The report then enumerates the diff
ferent articles to be taxed and the esti-
mates heretofore published of the
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