Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1899-08-25
MONEY FOR WAR PURPOSES.
TWashington Dispatch.l

Washing TON fDlSpdtCH.l
Secretary Gage is engaged in the task
of ascertaining whence the funds are
to come with which to pay for the
largely increased army recently deter
mined on by the president and Secre-
tary Root. This increase makes de-
mands on the treasury that may we'll
| cause some concern among its chief
officials. The receipts of the govern
ment did not meet the extraordinary
expenditures when the army was
smaller, and the problem of how to
| meet the cost of 10000 additional troops
gives the treasury department some
uneasiness. Secretary Gage. on whom
| is placed the responsibility of providing
funds, has begun to take his bearings
and prepare to meet these new de-
mands. The administration is unwill
/ ing to make another bond issue, but II
lit cannot be avoided this will be done.
1t can be said on the authority of
Treasury officials who have been giving
the matter careful study for several
weeks that the Fifty sixth congress will
not lessen the war taxes imposed by
the act of June 10, 1898. From ordinary
| internal revenue taxation last year the
receipts We're, in round numbers, $113,-
| 100000. The war revenue yielded, in
round numbers sl000,0O0,0o0. With the
customs duties and miscellaneous re-
ceipts added, a big deficit followed at
the end of the fiscal year. 1t is admit
| ted that customs duties ought not to be
further increased. The only source,
4 therefore from which additional reve-
lnue can be derived is from war taxes
Tor bonds. or both. Section 90 of the law
regulating the taxes on patent medi
lcines, etc, exempts from stamp taxes
| any uncompounded medicinal drug or
medicine" Under a decision of Judge
| Brown, of the New York district court,
this clause lifted out of the list of pro-
prietary medicines that We're supposed
to be taxed nearly all the coal tar prod
ucts and every conceivable drug or
1 chemical that can by any means be
| brought within the definition of the
4 word .uncompounded." This, the in
ternal revenue officials say, has cost the
4 government thousands of dollars. The
effort will be made to persuade con-
gress to remedy this defect in the law
and an increase in the present tax OF
2le cents on the dollar on all patent
medicines. perfumes and cosmetics may
be asked for.
1t has become apparent to the reve-
nue. officials that If any adequate in
crease in the revenues is to. be realized
lit must come from the further imposi-
ton of stamp taxes. Just where to inn
i, pose these taxes Is the question now
bothering those in charge. For sew.
eral weeks data have been quietly
gathered and recommendations to tn,
secretary are being formulated. The
following are some of the suggestion:
that find favor among the revenue Off
lcials:
The imposition of stamp tax on al
patent protected articles, the theor!
being that the value of the articles l
greatly enhanced by the protection o
: the patent laws of the United States
o and that as a war measure purely, tn
r government would be justified in de
; manding a fractional part of tn
i profits secured through the establish
rnent of a monopoly by virtue of tn
: patent laws.
1t is also proposed to place STAN
tax on all slot machines in which Their
Is any element of chance. 1t has bee
found that the manufacture of thes
q machines has attained gigantic proper
II tons. In each of them the percentag
d of profit 10 the proprietor Is enormou
: and the tax would not be oppressive
q OF course this would not strike thos
. machines which dispense chewing gun
for in them there is no element c
chance and the gum already pays
= government tax.
y Another proposition that has me
IS with favor at the hands of tn
: treasury department is one to put
stamp tax on all firearms, except sue
70 as are used for national, state or mt
n nicipal purposes. This would in a
II probability be pretty stiff tax an
r would yield large revenue. for til
sale of firearms in the United State
"a sands of dollars annually. simils
IN tax. only less burdensome, is suggeste
in connection with fireworks.
1t will thus be seen that the depar
= snent has gone into the field in scare
. IF revenues that was discarded by col
10 sress when the war revenue bill was I
81 for consideration. The members of Il
C. senate finance committee We're favo
90 ably impressed with the suggestic
when it was made to them, but II WI
abandoned because it was believed tn
n sufficient revenues would be secure
- without further increasing the burdel
!, Of taxation. Items that We're original
booked for special war taxes will aga
~ be considered and the scope OF the w
~ revenue law enlarged so as material
ne to assist the treasury and II possit
Il