New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-08-23
RIG ARMY BILLS TO MEET.
HEAVY DEMANDS ON THE TREASURY
CAUSED BY INCREASED FORCE
THE ADMINISTRATION UNWILLING TO
ISSUE BONDS. BUT WILL DO so IF
IT CANNOT BE AVOIDED


[BT TELEGRAPH TO THE TRIBUNE.l
Washington. Aug. 22.-Secretary Gage is en-
gagged in the task of ascertaining whence the
funds are TO come with which 10 pay the largely
Increased Army recently determined on by the
President and Secretary Root. This increase
makes demands on the Treasury that may we'll
cause some concern among its chief officials.
The receipts Of the Government did not meet
the extraordinary expenditures when the Army
was smaller. and the problem OF how 10 meet
the cost OF thirty thousand additional troops
gives the Treasury Department some uneasness.
These increased expenditures cannot even be
approximately figured out. The mere question
az pay is easily decided. but 10 this must be
added the enormous expense OF additional trans
ports: the greatly increased cost Of subsistence.
which. with the Army thousands Of miles away,
viii require the expenditure OF millions Of dol
lars: the added cost of new equipment for thirty
thousand men and the innumerable items that
go to make an effective fighting Army, properly
clothed. thoroughly equipped for duty and well
fed: all these things are expensive and their cost
IS more or less conjectural Paymaster General
Bates says It would be impossible TO give
rough idea OF the cost OF a regiment or OF the
military establishment in the Philippines with
out weeks OF cdrtlul lHNtSNASatAoA "a "O~'NN
This is now being done for the annual report Of
the Secretary. and until definite figures are
known the Paynaster Generals Department will
not make a guess.
CONSIDERING WAYS AND MEANS.
With plans matured therefore. that involve
expenditures running we'll W into nine figures
Secretary Gage. on whom is placed the response
blity Of providing funds has begun TO take MS
bearings and prepare 70 meet these new oe-
mands. The Administration is unwilling TO
make another bond issue. but II 1t cannot De
avoided this VIII be done.
Secretary Gage has ample authority II is as
serted to issue more bonds for the prosecution
Of the war IN the Philippines. The War Reve-
nue. law authorized the issue Of SlOO'oVooo
worth Of certificates Of Indebtedness and S4OO,-
100000 worth OF bonds. Two hundred million
dollars worth of these bonds were offered at
nopular subscription, and subscribed five times
over The law says that the proceeds Of the
sale OF those bonds shall be used "to defray ex-
penditures authorized on account Of the existing
war (such proceeds when received, to be used
only for the purpose of meeting such war ex-
penditures)" II is held by the law officers OF
the Government that the insurrection IN the
Philippines is to all !ntents and purposes part
n the existing war; with Spain. for, when the
law was enacted. the present condition Of ahalrs
may have been anticipated. Congress- too, au-
tborized the increase in the Army after peace
was declared and at time when 1t was known
the only use to which IL 10 be put was in
maintaining peace in the new possessions and
oueTing Instructions For these reasons II has
been held that the Secretary Of the Treasury
has fun authority still further TO encroach upon
the securities authorized by the War Revenue
act
WAR TAXES NOT TO BE REDUCED.
II can be said on the authority Of Treasury
officials who have been giving the matter care
mi study FOR several weeks. that the LNIth
Congress will not lessen the war taxes imposed
by the act Of June IS. 1895. In some quarters
the clanor for reduction Of these taxes has
already begun, but the enormous expenditures
10 be incurred in the next two years not only
forbids curtailment Of these special taxes but
requires an enlargement Of the general scheme
and a stoppage Of the holes through which those
supposed 10 have been taxed have escaped.
From ordinary internal revenue taxation lasl
year the receipts We're. in round numbers sl'0-
600 900 The war revenues yielded IN rouhu
numbers. S1OOOO0OOO. With the customs duties
and miscellaneous receipts added. big dehclI
followed at the end Of the fiscal year. II Is ao-
rnitted that customs duties ought not to be fur-
ther increased. The onl3 source. therefore, from
which additional revenue can he derived is from
war taxes OF bonds, or both.
Errors that crept into the War Revenue law
errors unavoidable owing To the haste neces-
sarv IN errecting its enactment-in some cases
have defeated the intentions of Congress. while
IN o-bere the courts have decreased the an
t,o,natAd revenues Section % Of the law
repulating the taxes on patent medicine ETC.
exernpts from stamp taxes any uncompounded
medicinal drug or medicine" Under a decision
NJ Judge Brown. of the NeW-fork DlstrlcI
Court this clause lifted out OF the list OF pro-
rrletarv medicines that were supposed 70 De
tsved nearly all the coal tar products ana every
conceivable drug or chemical that can oy any
means he brought within the definition OF tne
word "uncompounded
This the Internal Revenue ofhciaIs say mas
cost the Government thousands OF collars Inc
e4sor+ will be made 10 persuade CONGRESS -
-. .t,s defect in the law so that this dis
elimination cannot exist. congress W., -
askea n remove the ambiguity OF the language
-, .,ar5,, tax on proprietary medicines
-. - ,,o1,,de many that have hitherto been
- 80 ascane through technicalities and by the
S.az,.,.,-, .. their products. The revenue from
-. - on nronrietary medicines is not so large
a, u,as estimated. and II may happen that Con-
eress will be asked 10 increase the preSeh' 'aA
~ 21h cents on the dollar on all patent Hedi-
cines perfurnes and cosmetics
FURTHER STAMP TAXES SUGGESTED
II has become apparent TO the revenue ON
cisls that II any adequate increase IN the reVe-
tues is TO be realized it must come from lne
further imposition Of stamp taxes just "he,e
10 impose these taxes IS the question no" oo'n-
ering those in charge. For several weeks da'"
have been quietly gathered. and reconmeiua- 'I,
tions TO the Secretary are being formuia.e'
The following are some Of the suggestions 'H"'
find favor among the revenue officials;
The imposition OF stamp tax on all pa'e"'
...-.-a .-.aoias the theory being that the