Washington sentinel., 1899-01-21
CInnde A. swanson,

of empire" that reaches by difter-
ent methods the impressive con-
clusions so ably presented by SEN
ator Caffery. He says that alter
most careful examination he IS
satisfied that il that policy prevails
and we annex and permanently
hold the Philippine Islands Federal
taxation will be increased by at
least Saoo, 900, 900 per year. Many
persons estimate a much higher in
crease. Mr.. Edward Atkinson
the eminent economist and stats
tician, places the annual dehc't
under existing tax laws, ii the IN
perial programme is to be pursued,
at SI7S.ooo, 900.
The Secretary Of the Treasury
himself estimates a deficiency Of
revenue for the fiscal year ending
June 80, 1899, OF SIIa, 900, 900, and
for the following fiscal year
deficiency Of S3o,ooo,ooo' In
making these estimates he antlcI-
pates a great increase OF revenue
from customs duties. That antici-
patton cannot be realized. Last
year customs duties yielded $I40,-
GOO, 900. This was S26ooo,oo
less than they yielded the gear
before, Receipts from customs
have been steadily decreasing
every gear under the Dingley
tariff. Yet, contrary to this actual
experience, Secretary Gage esti-
mates that customs receipts will
increase to SE9s ,ooe, , 900 next year
and to Saos, 900 900 the year after.
Even if receipts from customs
" ere not sure to be decreased by
the annexation OF the Spanish ISL
ands, there is no reason to expect
that the present tariff, with its high
prohibitory rates, will yield over
S1so, ,ooo, 900 a year. But the inn
perial policy must result in great
loss OF revenue from customs
duties. The revenue derived last
year from duties on sugar and TO-
bacco amounted to S6a, 100000.
With Cuba, Porto Rico, Hawaii
and the Philippines annexed this
revenue is lost, and in the next two
wears this will make a difference in
the Secretary of the Treasury's
estimated receipts OF SI64, 900 900.
Add to this loss Of SI64, 900, 900
the deduction OF S1oo, 900, 900 OF
overestimated revenue for the next
two years, which experience shows
US will not be collected, for the
Secretary's estimates are certainly
$50, 900, 900 a year too high for the
fiscal years 1899 and 1900, and we
have a total OF Sz64, ,ooo, 900 Of es-
timated receipts for these coming
two years which the Treasury wall
not get. Add this to the Secre-
tary's own admitted deficit OF
SI24, 900 900 for the two years and
we are confronted with an aggre-
gate deficiency for those years OF
$500 ,ooo, 900, or BI83, 900, 900 for
each year. That is a little in ex-
cess OF the yearly deficiency esti-
mated by Mr.. Atkinson.
Mr.. Swanson is satisfied, how
ever, that the actual yearly de-
6clency OF revenue under present
tax laws and with the imperial
policy prevailing will be much
| larger than this. The Secretary
Of the Treasury estimates a de-
crease OF expenditures for pensions.
The Spanish war pensioners have
to be provided for, and the perma-
nent conquest and garrisoning OF
the Philippines must still further
lengthen the pension roll. There
must be a large increase OF pay
ments for pensions instead OF de-
crease. He is not prepared to es-
innate the increase, but it will
probably run up to SIo, ,ooo, ,oeo or
more a year Tor the next ten years.
The Secretsry's estimates in
clude no items for public buildings
in the new possessions, no exPen-
ditures for Notifications, for river
and harbor improvements in them;
none Tor building roads and proVid
ing means OF transportation in any
of the islands, which will be indis-
pensable as a military measure;
none for building schools and pro-
viding for the education and civil
ization of the 5000, 900 OF practi-
cally "untutored savages" who are
to become our wards in the Philip
pines. But all these things will
surely require large expenditures.
And when they are all included in
the reckoning the yearly deficiency
of revenue, on our present fiscal
basis, cannot be less than 6aoo,-
ooo, 900.
To meet that deficit Federal
taxes must be increased by about