The Montgomery advertiser., 1901-11-12
ALL WAR TAXES
TO BE CUT OFF BECAUSE or
 ENORMOUS SURPLUS.
Republican Leaders in Congress, with President Hoosevelt's Sane ton, Practically Agree Upon
 This as the Plan.

TnlS ae tne GAans
 Washington Special to N. Y. World.
 The Republican leaders in Congress, with the Presidents sanction. plan to cut of all the war taxes, reducing internal revenue rates to figures as low as, if not lower than, those that prevailed just De- fore the Spanish-American war.
 E The object of this Is to reduce the pres ent enormous Treasury surplus, which ss regarded as a menace to the prosperity of the country,
 The net Treasury surplus for the pres- ent fiscal year may reach sf3O.0e0.o0o.
 Secretary Gage made this statement to- day at conference between himself and Chairman Payne of the House Ways and Means Committee. Mir. Cages previous highest estimate for the years surplus was $So 900. The recent enormous in- flow of money has caused him to change his figures. The surplus last month was $, ,ooo, 600.
 The conference between Chiirman Payne and Secretary Gage was of the utmost importance. Mir. Payne called to obtain information upon which to base bill for early introduction into Congress for re- duciug internal revenue taxation. This measure will be framed by Mir. Payne at his home and will be presented to his committee when Congress convenes. Sec retary Gage and Mir. Payne canvassed all the sources of internal revenue and dis cussed the extent to which reductions might safely be made.
 The Proposed Reductions.
 It practically has been determined by MT. Payne, after consultation with the President and with many of Mir. Payne's associates on the Ways and Means Com mittee, to prepare a bill abolishing all the special taxes imposed on account of the Spanish American war and reducing all those increased.
 By the abolition of the miscellaneous special taxes 1t is expected to reduce the revenues about s15.ooo.oOo.
 It is proposed to reduce the tax on beer from $1.6o a barrel to s1 a barrel, the fg- ure prevailing before the war. thus talk Ing off about s25. 100000.
 It is intended to reduce the tax on to- bacco from cents pound to cents,. the former rate. and to rearrange the ci- gar schedules. thus effecting an additional reduction of S25, ,000. GOO.
 In this way, the entire war tax will be wiped out and the surplus reduced by about ss5. .eOO, ,Ooo. possibly s75,Ooo,eoo.
 Until today 1t was expected that re- duetion in the net surplus Of S75.o09,00) would leave only $5000.oN in excess of the receipts Now, it Is possible the financiers of Congress will have to make computations regarding further sur plus of $50, 0,0o0.000 This is a disquieting problem to members of the Ways and Means Committee, as nothing is more dreaded, in the light of past experiences than a large surplus. It encourages recklessness in appropriations. great surplus is often followed by heavy de- felt
 Some further relief would be found in a reduction of the tax on whiskey. The present tax of $12O a gallon is an in- crease of 30 cents over the tax formerly paid. Restoration of the s0-cent tax would reduce the revenues several million dol lars It is suggested that the tax may be reduced to 80 cents or even to 70 cents a gallon It is admitted that the present high tax places a premium on moonshin- ing.
 The brewers demand a reduction of the tax on beer to 95 cents barrel. and say they will be satisfied with nothing less. The officers of the National Brewers As- sociation have visited the President and made known their wishes to him.
 No Tariff Revision.
 Beyond this proposed reduction in in- ternal revenues, there is no plan in sight for surplus relief. The President ana the Republican members Of the ways and Means Committee. with two possible exceptions. are unalterably opposed to any revision of the tariff. All agree that reduction on one article could not be ef- fected without going through the entire list. and such a revision Is not contem- plated. All agree also that business would be unsettled and the present pros perity materially checked. The President and these members think 1t wise to leave well enough alone.
 If Secretary Cages surplus estimate proves we'll founded the Ways and Means Committee will undoubtedly consider propositions to lessen duties on certain articles now admittedly overprotected. but there is no expectation that pracd- cal results will follow. as 1t is held that a concession in one direction would have to be extended fin all other directions. Tho necessary support to pass a revised tarin act could not be obtained unless each Re- publican member of the House had some thing on which he could appeal to his constituents for approval
 It Is declared by members of the Ways and Means Committee that MT. Babcock stands alone in his plan to remove the duties from steel products. It is denied that MT. Tawney of Minnesota seriously indorses the Babcock bill. It is contended by other members that Mir. Babcocks bill would prove beneficial only to the trusts, and that the small producers of steel would be worse off than at present.
 No Prospect of Reciprocity
 There seems no prospect along the line of reciprocity. It is not now believed that any one of the pending reciprocity treaties can obtain ratification in the Senate. So thoroughly has this sentiment prevailed that all the treaties in which Great Britain is interested have been per- mitted to lapse. None of them has been renewed. These include the reciprocity treaties with Jamaica, Antigua, British Guiana, British Honduras, the Barba- does and other West Indian possessions.
 It is certain the President in his forth coming annual message will speak well of reciprocity. The Philadelphia conven- ton pledged itself to this tenet. Presi- dent Mckinley made 1t the keynote of his Buffalo speech.