The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-02-06
rnr oorrnxnrvrs rxAxcrs.

eReerness 10 buy speculative stocks and a
desire to take profits for the purpose OF invest
ing them in securities OF longer standing, and
therefore more thoroughly seasoned by ago
than the new ones recently put upon the mar
ket. Still. the average level OF the most active
fancies is above that at which they stood when
the year opened. and no symptoms OF n coming
panic in them are visible. The probability Is.
that they will. from henceforth. n]uctuate up
and down until their prices are adjusted to
their real values. and find a resting place upon
the firm foundation OF facts, instead Of the
Illusions Of Imagination aud hope
4 factor OF considerable Importance in deter
mining the future course Of thc market. and
which does not receive the attention It dc.
serves. Is the possible action OF the United
States Government In dealing with its de-
posts in the national banks. These deposits
amounted. at tho end OF last month. to SS0,OOO.-
900, against S~2S,O00.OO0. on June IL. 1893.
when the Treasury began TO receive ayment
on account Of the new S20O.O0O. ZOO loan. and
they have. until quite recently, been as much
as SOS, 100000, The larger portion of them Is
held by the banks OF this city. and their with
drawal. abundant as the resources OF these
banks are and low as are the rates OF interest
all over the country. could not fail to cause
some contraction OF the supply of money and a
consequent fall in stocks. 1t is notorious that
vi Wv - 'NNsbNN CIV y ny Nllt buI = lbO
Saturday, as the amount OF their loans and dis.
counts. more than half is secured by stocks,
and aids In stimulating speculative purchases.
For its ordinary needs the Government is.
indeed. amply provided with money. apart
from It's deposits In the banks. The balance
IN its Treasury when the present Administers
ton came into power. March |. 1897. was.
thanks to President Clevcland's last panicky
bond issue. S212. 800. 900. and. in spite OF an
I-.A -G.N -l -
from the $50. 900. 900 voted by Congress for war
preparations. 1t hal fallen only to 100000. 600
on June 13. 1903. when the proceeds of the
100000. 900 loan began to come in. Replcn-
ished by this loan. it stood. at the close OF last
month. at 1922. 100000, of which S254, 600. 900
was in gold and notes available for immediate
disbursement. Nevertheless, the expenses OF
the war arc by no means all paid. and the pros
pect is GOOD for the early ratification OF the
treaty o, peace with Spain. which will involve
the payment to that nation OF the $4,000. 900
stipulated as the consideration ofthe transferto
us Of the Philippine Islands. Then there il
the $4,000. 900 which we are TO nay the Cuban
patriots. with more, probably, to follow.
Besides these obligations. already accrued.
large expenditures will soon have TO be made
for the army and navy and for Notifications. in
pursuance OF the policy of expansion to which
the nation is committed and from which it can
not honorably recede. 1t is true. that. for
much OF this drain upon the Treasury. the War
Revenue bill has provided-the receipts from
customs and internal revenue. for the seven
months since July |. 1898. having been nearly
S2T5.00O 900. against SlT5.OOO.OOO for the
seven months following July /. 1897. At this
rate the Government will have, for the year
ending June 30 next. an additional income OF
about $4,000. 900. and tho question is.
whether this addition will suffice for its addi-
tional expenses. or whether Their will be q DELI
cit calling for more customs and internal reve-
nue. taxes. or, perhaps. a new bond issue.
An increase Of customs duties is the least
available eXpedicnt for increasing the revenue
TO which resort can be made Under the com
petition Of domestic products the imports OF
manufactured goods are decreasing. and rui>-
ing the duties upon them would decrease them
still more. so that the income they would
yield would not belarger, and might be smaller.
Tea is already charged with as much duty as it
can bear. and. Tor political reasons. adutyu upon
coffee is possible only under the stress Of eN-
treme necessity. Wool, hides and other raw
materials Indispensable to the manufacturer
could not safely be subjected to higher duties
than those row imposed upon them. Already.
complaint is made that they are TOO costly for
the welfare of home consumers, who would re-
sist with all their might any proposition to
make them more SO.
The main reliance for increasing the GOV
ernment's revenues must. therefore he placed
upon increasing internal taxes. which hav,
already proved much more productive than
duties upon imports. The present War Revc~
nue. bill has not been long enough in operation
to show what are its merits aud its faults. and
therefore. in what respects ii can be amended.
but the experience OF its workings has clearly
demonstrated its utility as a revenue measur"
and suggested illimitablc possibilities OF it,
extension to new fields and the enlargement Of
those already occupied byit. Ashley have long
been in Europe so in this country. stamp taxes.
. Else duties. succession and death duties. and
eventually. n tax upon incomes will be per-
Inanent elements Of our fiscal system. Only.
like all taxes. they will always be unpopular.
and politicians will be reluctant to make them
any heavier than they can help.
Meeting n deficit in the revenue by bond
issues is hardly TO be considered MS probable.
President Cleveland resorted to this eNpedicni
during his administration, but he was afraid
or ashamed to do it openly, but cloaked his
operations under the ~pretense OF protecting the
gold reserve for the ption Of Government
notes. and Of thus maintaining the national
credit. These pretcNts are not now admissible.
and even If they were the present Administra
tion would hardly make use Of them. Tho
boiuo u VI E''i 'iil SUM
cient to redeem all OF the Government notes
that could be presented. and with the con
tinued influx Of gold into the country from
abroad it Is not likely to be called upon to re-
deem any at all. The Secretary of the Treasury
has. indeed. under tho War Revenue act. att
thority to borrow. on certificates Of indebted
ness payable at not more than one year from
date. such sums ms may be necessary TO meet
public expenditure not exceeding SlOO.OOO.-
600, and, in an emergency. he may exercise il,
Before. however. any new taxes can he laid
or money borrowed for re pIenishing the Treas
ury. the necessity for such measures will have
to be demonstrated to the satisfaction of the
nation. An increase Of customs duties and in
ternal revenue taxes. and, still less, borrowing
will not be sanctioned by it.. So long n
the Treasury holds anything approaching the
amount II ready money that it does now. The
first effect, therefore, OF "a continued excess oI
Government expenditures over Government
receipts will be n decrease Of the Treasury bal,