The times. [volume] (Washington [D.C.]) 1897-1901, 1900-12-12
THE WAR REVENUE BILL
The Tax Reduction Measure Comes
Before the House.
Representative Payne. Chairman OF
the Committee ON Ways and Means,
Makes the Opening Speech and Is
Followed by Representative swan
sen on Behalf of the Minority.

The War Revenue Reduction bill was
taken UP by the House of Representatives
in Committee of the Whole yesterday. on
motion of Mr.. Payne, Chairman of the
Committee on Ways and Means. Mr..
Payne, in opening the general debate, re-
viewed the financial condition and pros
pects of the Government, explaining the
reasons in connection Herewith which
animated the committee in its action.
Notwithstanding the estimates of the Seq
rotary of the Treasury, the majority of
the committee thought it wise, whether
the Treasury surplus OF the year of 1902
were fifty or sixty millions, not to report
a measure that might lead to deficiency.
1t is the Republican habit, he said, to deal
with surplus, and the party knows how
to do SO; but il is against its policy to
deal with g deficiency.
The pending bill. he explained, proposes
reduction Of forty millions; II provides
exactly what the Committee on Ways and
Means said ought to be done when the
original bill was introduced. 1t left sixty
five millions to be raised by the War Rev.
enue act. This amount was necessary and
would continue to be, by reason Of the
expenses following in the train of the
Spanish war-sn increased army and navy,
additional pensions, and interest on the
bonds sold 10 raise revenues for the con-
duct OF the war at its outbreak.
1T is true he said, that there will be
an increase Of revenue from our new ISL
and possessions, but Il is hardly probable
that the customs and the internal revenue
duties received in this direction for few
years to come Will be more than sufficient
10 meet the requirements for harbor inn
prCvements, Notifications, and other neces-
sary public works in these islands. So we
may look for no surplus of revenue from
that source
1T is true that there is large surplus
in the Treasury now. and that this sur
plus VIII be greatly augmented by the 1st
day of July next. But this surplus cannot
and ought not be relied upon 10 meet de-
fciencies in the future. 1t has been de-
rived from the surplus under the original
tariff act CT 1887. Equtably it belongs to
the sinking fund.- and no one has any
right to complain OF the Secretary of the
Treasury II he should apply a part of this
surplus in canceling the Indebtedness OF
the United States TO meet the requirements
of the Sinking Fund act"
Proceeding 10 discussion of the pro-
vision in detail of the bill Mr.. PAYNE
said, that he had been importuned by
country banks to repeal the tax on bank
checks, because 1t was a nuisance 10 their
customers, who did not use specially
printed checks. City banks, which gener-
ally used printed checks, advocated the
retention of the tax, but urged the repeal
OF that of 81 on 1000 on bank capital
The committee thought the banks could
better afford TO pay that tax than the peo-
pie could afford to pay the check tax. and
SO the bank tax was retained and the
stamp tax repealed.
The tax on express receipts and tele-
graph messages, he said, was probably
the most yeyatious In the list and the
committee took 1t off. Men said, why
not make the companies pay it," The
committee tried to do so, but the compan-
les. as they had the power to do. would
simply add Ii to the cost of Transmission.
What some observers thought when the
Senate added tax on the Standard oil
and the Sugar Trust would happen, had
come to pass. They added the tax TO the
price OF their products. and added some
thing beside, which tended to swell their
dividends. Taxes always sought the coz
sumer. Mr. Payne added.
Considerable time was devoted by Mr..
Payne to the tax on beer. 1t was the opin-
ion of the committee. after fully consid-
ering all the facts, thatsa reduction of
twenty-five cents a barrel was all that
that interest had right to ask Congress
to concede. 1t was made by the commit
tee, he said, only because of the siren
uous representations of the gentlemen
engaged in its production that the tax
was destroying their business.
Mr.. Payne poked fun at the recon-
mendations of the minority, especially that
OF the re-enactment OF the income tax.
That. he said. would be the plunging OF
Congress into a lawsuit as a means OF
was Tot good craftsmanship, Mr.. Payne
said, to hold the surplus in the Treasury
against deficiency which was deliberately
provided By legislation. If the years pro-
duced an additional surplus he believed 1t
would be wise to reduce the debt of the
nation. He did not believe that a debt
was any more beneficial to nation than
il was TO an individual, and he hoped time
would come when every dollar Of Govern
ment Indebtedness would be paid off.
Mr.. Swanson. minority member Of the
Committee on Ways and Means. made
the opening argument and presented the
views OF the Democratic side of the House
pending bill He said that the Democratic
party fully recognized the urgent neces-
sity for reduction in the present revenues
OF this Government; that during four
years taxation had increased over $780,
00U, 600, and that IL this heavy burden is
continued, business and commerce will Sc
riously suffer. He expressed regret that
the Republicans had failed to avail them