The evening times. [volume] (Washington, D.C.) 1895-1902, 1898-04-09
Coin BONDS TOPAYFORWAR
Bill Providing for Half a Billion
Dollars Prepared.
PUBLIC INVITED TO SUBSCRIBE
VIII CO 10 the People al Par and
ne Issued as Occasion Requires.
p,ons of the Administration in
case IL les Necessary to Eorrov
Increase of Internal Taxes.

A bin providing for a temporary loan
Of 500 Oee. eco and a permanent loan OF
from $780, 600 TO S5ea. 100000, at per
cent. payable in coin. has been prepared
by the Ways and Means Committee, and
will be Immediately introduced in case
OF war.
The whole question of the finances OF
the Government, i'm view of probable hos
Utilities. is being carefully considered by
the Treasury officials so that definite
and Neutrality-suspicious. plan OF operations
may be at the disposal of Congress In
case Of need.
Congressional financiers were in consul
tation yesterday concerning the provision
OF money for war between this country
and Spain. The meeting was held i'm the
rooms Of the Appropriations Committee
Of the Senate, and was attended by Chair
man Dingley. of the Ways and Means
COMMITTEES of the House; Senator Al
drich and Senator German.
The plan of issuing a popular loan in
small amounts. 10 be placed through the
postofiices throughout the country. was
discussed The difficulties which sur
rounded the popular loan of ten or nj
teen years ago were brought up, ana II
was suggested that il would be better TO
simply go ahead and issue bonds.
MIR. Dingley. ii is said, was in favor OF
a temporary loan Of Sle00)0ooo. and
permanent loan of from $500 coo oa0 20 $780,
0a0 oea at per cent. payable in coin.
The conference adjourned al Z O'Clock.
after having been i'm session over two
hours. In speaking of the necessity for
war taxes, Chairman DinEley said
1t is impossible for us to arrive at
10
Just yet. None Of us can tell just how
much war is going TO cost US. War
expenses always run up 10 enormous fig
ures, and perhaps any revenue We might
raise from war taxes and bonds would
soon be expended.
Money is going very rapidly now,
ard So, coo does not last very long at
the present rate of expenditure. We win
simply have TO wait and see. Then VIC
must meet the emergency as il arises
An increase in the internal revenue tax
on beer from 81 10 s. per barrel, and a
large increase in the tax on manufac-
tured tobacco. including cigars and cigar
etes. have been practically agreed upon.
Bank checks. bills of exchange, drafts,
deeds, mortgages and other paper Of this
class, patent medicines and nostrums in
all probability also viii be added on the
list.
A Tough estimate is that the increase on
these articles alone will approximate
SlO0 coo 000 year. Beer. il is thought,
VIII produce an increase Of SIS. COZ O0a.
manufactured tobacco an increase Of S33,-
oo0.0O3 or more. and commercial paper
and patent medicines So GOO COO
Another source Of revenue is almost Ger
tain to be a tax on the transactions in
railroad and other listed stocks II is be
heved that the returns from this source
will be large.
I'M an the nguriuu eo far Tho rom. inn
Industries and the professions which
were taxed for strictly war revenues dur
Ing the rebellion have been left out OF
the account. An increase Of from . cents
10 cents on letter postage and a tax on
gas and electric light has also been sug-
gested 10 the Department, but thesa
Items have not yet been considered The
Increase Of one per cent. an ounce on
letter postage probably would augment
the receipts by 100000 a year.
The war loan Of the Government will
be raised by popular subscription. Short
term bonds viii be issued. bearinE 3
per cent. interest, and they will be sold
a. par.
The capitalists Of the country are will
ing TO accept bonds payable in coin. The
question 81 gold or silver will not enter
into the question at all.
This much Of the question as to the
country's finances has been settled by
frequent conferences Of Secretary Gage
and President Mckinley with leading
representatives, of the banking commu-
nifty in Washington during the last week.
no syndicate has been organized. nor
has there been a preparation looking I'm
that direction. The war loan will be Of
fered to the people, and if the public does
not subscribe then the bankers will step
IN and take the bonds.
Among the bankers who have been IL
conference with the Administration is A.
b. Hepburn. vice president Of the Ma
tional City Bank, which is controlled by
the Standard Oil clique Mr. Hepburn
IS authority for the statement that the
authorities nave decided on a popular
war loan.
mo arrangements have been entered
into or discussed" said Mr.. Hepburn.
1T was not necessary. Sufficient as
surances have been extended to the Gov
eminent by leading financiers to make
the authorities easy on the score OF mon
ey in the event of war 1t is only neccs-
sary for Congress TO grant the author
fly and the Government TO issue the call
for bond subscriptions.
Another banker. who is close to the Ad-
ministration. and who has had a number
Of conferences with the Secretary Of the
Treasury. said that Secretary Gage had
only desired information as TO whether
the Government could borrow money at
as low rate as 3 per cent on coin bonds.
He was informed that if the people would
not take the bonds at that rate the banks
would.
The program Of the Administration is
TO obtain authority from Congress for
an issue OF $500 600 three per cent coin
bonds which may be issued at the op-
ton OF the authorities for war purposes
ID is not the present intention. however
Of the Administration to issue bonds. An
effort will be made to meet the extra
ordinary expenditures of war by means |
OF increased taxation and the existing |
large surplus in the Treasury.
IL is believed that the war will he Of |
short duration, and there is a possibility |
that ii can be terminated without the |
issue of any bonds at all. The Treasury
officials are confident that war can be |
counted on for six months without any
necessary issue of bonds, unless the gold
reserve should become impaired. In that
event there would be an immediate issue
OF bonds. IL the people do not become
frightened and make . run on the gold
in the Treasury han believe the phe-
nomenal spectacle Oh war without a
war loan may be presented by the United
States.