The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-01-16
Tnr xAr1os,s rAx.rArryo AB1rIrI.

land secs ovcrhunging the p~recipices OF thu
Alps. and which threaten to fall with n crash nj
any moment. still. as those masses linRer OF
the brink for days and weeks. so the stock
market maintains its apparently perilous posi-.
ton without giving any indication Of an imme.
dinto collapse. Tho transactions In II. last
v,rek. were larger than over. averaging over
100000 shares a day, former high prices were
stubbornly maintained, aud new advances we,
made Possibly. the buyers are wiser than the
sellers. and are really paying for things no
moro and even less than they are really worth.
hut whether or not this is so, n very few weeks
more ought to demonstrate.
Tndoubtedly the financial condition OF tho
countrv is favorable to tho maintenance OF
high prices for all stocks and bonds which can
be- relied upon TO pay interest and dividends.
not only for tho present but for the future also.
Such stocks and bonds investors can well
AFFORD to buy at rates which will yield them 4
nor cont. per annun on their money. and FOR
zach as promise moro than 4 per cont. upon
what they are selling for. the only question is
how much above 4 pcr cent, at present, will
eompensatc for the risk Of not getting. after n
few years. anything Mt all. Tho country is
rich, and steadily growing richer. and the Diff
lculty Of investing probably its surplus earn
ings il increasing accordingly. Hence the
temptation to embark in new and doubtful
ventures. and hence the possibility that some
of thcsc new ventures NAV turn out well.
This same condition OF things has an i'm
portant bearing upon a question which has
been raised with reference to tho acceptance
OF the vast additional territory which the for
tune Of war has placed at the nations disposal.
In the eyes of some of our fellow citizens.
many Of them eminent for their ability and Of
undisputed patriotism. this proposed increase
OF our national domain threatens an increase
OF tho nations expenses which should be
averted by all possible means. They point to
the probable cost Of the army md tho
navy which we shall be comrolled to main
tam In order to preserve peace and order
I'm these new possessions, the expense OF
administering government in them, and
the outlay required for their fo-tincntions. har-
bors. roads. sewerage. public buildings and
other accessories OF civilization. all Of which.
they compute. will amount to many thousands
OF millions Of dollars and be an intolerable
burden upon the nations resources. Their
demonstrations have an appearance OF reason
ahlcness. put they are based upon n defective
view OF all tho facts Of the case. and n moro
thorough examination of them shows that they
are insuficiently justified.
All estimates OF the magnitude OF the mill
tary and naval force which will be required to
provide for the proper administration OF the
new territory OF which we are about TO take
control. must. at present, necessarily be hy-
pothetical. and. consequently. all estimates OF
the cost of maintaining it must be hypothetical
also. During the fiscal year ending June 30.
1877. before tho war with Spain was even
we paid FOR our military establish
mcHt. including rivers and harbors. forts.
arsenals and scacoast defences. about S50.00O,-
0DO, and for our navy $50. 900. 900. Doubling
these expenditures to meet impending con-
ditionS. would more than double our military
AMI naval power, and sufficiently provide for
cur new needs. This would add only $50 .00O.-
0OO to our ordinary army md navy expenses.
md even il the increase should be $780, o 900
Il would not crush us. As to the other items
have been mentioned, they would
be charGeablc TO the localities bene-
1."d. and paid out Of the revenue drawn from
The nation as II whole would not have
10 provide for them.
Without going into details. however. and
,oncedIng. what is true, that tho acceptance %
territory we have gained and the under
aking OF its government, civilization and de-
against foreign aggression impose upon
Is an outlay of money exceeding that we have
before made for national purposes except
n time Of war. 1t by no means follows that such
IN outlay will be detrimental to our welfare.
On the contrary, there is reason to believe
hat, by consuming some OF the annual surnlus
of wealth. which our capitalists
low find 1t so difficult to invest proftably. and
which, as we sec, stimulates wild and unhealthy
population, it will prove a real benefit to us.
ike the reduction OF flesh in n man suffering
rom obesity. it will increase our strength by
l%epriving us OF superiuous weight and bulk.
Whether procured by taxation or by borrow
,A- 80, fIr --. |
Every Government have to be provided for by
he industry Of its citizens. Taxes, of course.
a first charge upon n mans earnings. are
out Of those earnings. ana loans are made
" the lender either out OF lis own resources.
II out Of the resources Of some one else. from
whom he prOcures the money. Borrowings
foreigners are an exception. because the |
of them are supplied from foreign
an!ta'. and not from that of the nation Dor
ewing. So long. thCfcfore. as the revenues of
Go"crnment arc less than its expenditures, |
nd 30 long as it can borrow from its own citi-
all the money it requires. a nation is
il not richer. at least no poorer.
his was our condition from the close
I the civil war down to 1898. During
hat period. the Government revenues con-
family exceeded its expenditures. and enabled
TO reduce the principal OF our interest bear
'L N'''' ll'Hi S-,bc soJD,ObO III lNNDD 10 DDCD.- |
OO.CU IN 1882, making an average reduction
SJO.OOO 600 q year. and in some years. as.
or example, il 1880. one OF $4,000 900. 1t
Tas not until the Democratic administration
President Cleveland reduced the customs
eYenues by the Wilson Tariff act. SO that in
SD3 they did not meet expenditures. that the
eduction OF the debt ceased and was followed
\ 1914 and lS95 by an increase, falsely at.
TO the existence of the Government
sgal tender notes, and last year by ono rem
cred necessary by the war with Spain. Under
h" present Tariff act. aided By tho War Rev
nuc act, the Government income has been in
rcased 10 nearly $500. 000.0O0 a year. which is
l'o.poO,OOO more than was required. oman
Nerage. Tor Government expenses prior to the
ar with Spain. and that it could he increased
bother 100000. 900 without distressing our
!fiZens nobody viii dispute.
How easily tho nation Ia, BONE tie in
rcased taxation In posed hS the DinGley Tariff
ut and by the War Revenue act, Is a matter OF
ommon observation. In addition. our citizens
ere able, from their own resources. to lend
le Government last summer 5000 100000.
nd at the same TINA they hhys rnIurchnse sod