The times., 1898-02-21
OUR CONDITION FOR WAR.
Mr.. Dockery Believes We Could Re-
sist ANY Naval Attack.

sist Any Naval Attack.
| Confronted with a situation that may
| become most grave and critical in the
| near future. it is of the utmost impor-
| tance to know something definite about
the Government resources for immedi-
ate war uses. and the strength of the
new navy. On this phase of the situa-
tion which up to this time has not been
discussed. Representative Dockery,
leading member of the Committee on Ap-
preparations. yesterday gave The Times
some information that is of particular
value at this juncture. Among other
things Mr.. Dockery said:
'"The late civil war called into existence
a stupendous military establishment.
The Government laid the burdens of tax
alton in all constitutional directions to
meet the enormous expenditures incident
to the prosecution of the war. From
July /. 1861. to June 30, 1866, the actual
outlay of the national Treasury was
sS, SI3 1S9. .S27.45. the ordinary income of the
Government for the same period having
been 81. .321, ,05s, 1872 That is to say not
withstanding that extraordinary taxes
We're levied TO supplement the ordinary
revenues. the Treasury income was insult
ficient by s., ,552. .13l, ,0S4. SO to meet expendi-
lures. The revenues derived from Gus
toms were increased during the period to
which / have adyerted by increasing tax
alton from an average of 1884 per ceht on
dutiable goods in 1861, to an average OF
0.29 per cent.
Internal revenue and direct taxes were
I'm tn OH ha arising from
customs in meeting the heavy demands
upon the Treasury. A tax was also i'm
posed on home manufactures. which
yielded a large annual revenue. A tax
was also levied upon incomes to relieve
the stringent Treasury situation. The in
come tax added to our revenues in 1856
So, 0oG 600, which was paid by 4so. III per-
sons. Congress also levied taxes on the
receipts of railroad companies, insurance
companies and express companies Banks
were also required to aid the Government
by taxes which were collected on their
capital, deposits and checks.
',The national income being still made
0rrate to meet the liabilities of the war,
Congress authorized the issue Of bonds
to meet the then ever-increasinS def
cheney Many of the bonds were sold Tor
greenbacks at 40 to 50 cents on the dol
lar, measured by coin standard. 1t IS
obvious therefore from this exhibit, taken
from official reports. that the Govern
ment secured the larger part of the in
come to maintain its armies in the field
by the sale of bonds authorized by va
rious acts of Congress from 1852 to 1860
Mr.. Dockery, replying to a further
query as 10 the financial resources Of the
Government available for war uses, and
the probable methods the Government
would employ to raise money in the event
of war. continued as follows:
The Government had on Saturday
evening last an available cash balance IN
the Treasury of s225, OH .032.1 Il. This Treas
ury balance, exclusive of the slc0, 900
gold reserve. is available to meet all
Treasury liabilities. IN the event the
gold reserve should be trenched upon.
the resumption act Of January IA, 1919,
authorizes the Secretary of the Treasury
TO issue coin bonds 10 maintain resump-
ton This is the only law now authoriz-
ing the issue of bonds. and the Presi- |
dent might invoke its aid to maintain
the gold reserve, and by the existing
Treasury construction the money thus
procured from the sale of bonds could be I
used to meet current expenses after hav-
ing once performed redemption functions. 1
Should war be declared, however. the |,
President would not be required to thus
secure money by what seems 10 me to 4
be pernicious Treasury construction /
Congress would at once provide the .
Treasury with an ample income. as 1t did .
from 1861 10 1866. by taxing, if necessary, (
express companies, insur /
ance companies. banks and other owners /
OF wealth. and by granting authority to /
the Secretary of the Treasury TO issue /
bonds. and thus supplement any deficien-
cy in revenues not met by these extraor- |
binary methods of taxation
'The only income the National Treas
ury enjoyed during the war period which 4
could not now be ayailed of would be the (
revenue derived from a tax upon in !
comes. The recent decision of the Su- /
preme Court having declared such taxa
tion to be unconstitutional. the people
would be compelled TO maintain the army
and navy without any aid from an in
come tax. l wholly dissent from the JUS
tice of that opinion of the Supreme Court,
but the people of this country will main
tain the national honor and uphold our
flag. even though the holders of unpro-
ductive capital escape their just share
of the burdens of government.
''If war should come the resources of
the republic will be ample to meet its lia-
oilites without the hardships of taxation
entailed by the civil war. Then our peo-
Die were estranged and divided; now
"a l.
whatever may be essential TO uphold the
Ipon land or sea. Since the civil strife
,ur population has more than doubled:
he mileage of railroads more than tre-
,Ied: an our industries have multiplied
greatly, and the national wealth now
caches the mighty total of more than
40. 001, 900 900. Our financial resources,
therefore, are fully adequate to meet all
he possible requirements which war
night entail upon the Treasury. Our
lrmy, it is true, is but skeleton army.
of but $4,000 men. but that
trmy would swell to millions upon the
all of Congress and the President.
Our new navy. while not so powerful
IS the nayies of England. Germany and
'ther great European powers. is yet for
and if the occasion arises will
'roye worthy successor of the old-time
iavy. The superb conduct of Capt. Sigs-
zee amid the awful horrors incident to the
destruction of the battleship Maine shows
hat the valor of our seamen is not de-
adent.
'Since 1889 Congress has authorized the !
obstruction of seventy-seven war yes
els. at a cost of s134, ,439, 101. 10. Sixteen of
he vessels have not vet been completed.
The vessels authorized since 1889 are as
ollows:
|