The National tribune., 1903-08-06


teas, and under its provisions the Treas
ury Department had organized Tea
Board for the purpose of selecting stand
ards with which all subsequent importa'
tions were to be compared. The new tax
on tea, therefore, served n double purpose
that of providing considerable additional
revenue, and at the same time of CON
tributing to the efforts to secure better
teas for consumption in the United
States.
OLD WAR TAXES REVIVED
A tax known to the old internal reve
nue. schedules, in vogue during the civil
war and for some years thereafter, was
| revived-taXes on patent and proprietary
medicines and toilet articles, on chewing
gum, and on wine. Certain new taxes OF
business were also provided. These were
levied on bankers. brokers, museums, con
cert halls, circuseS and other public ey-
hibitions, bowling alleys and billiard and
pool rooms. Taxes were also levied on re-
| tiners of petroleum and sugar, and on pipe
line companies. Stamp taxes were also
revived and applied to various business
| transactions, as represented by bonds, de-
bentures, certificates of stock and of in
debtedness, bills of exchange, bank checks
and drafts, and, in fact Il variety of in
strumentS, including telegraph dispatches,
express receipts, passenger tickets, etc.
Opportunity was also taken to incor-
porate in the act provisions subjectins
mixed flour to certain taxes and restric-
tions. This was not DONE of course, in aid
of the public revenues, but to regulate an
industry which had become as objection
able as that of the production of oleomar-
garine, which, under Il previous internal
revenue law, had been subjected to SINH
lar restraints. The operation Of the law
for the first six months of its existence in
dicated that it would produce about $780,
100000 year.
That part of the law which relates to
loans authorized the Secretary of the
Treasury to issue certificates of indebted
ness, payable not exceeding one year from
the date of issue. to the amount of $780,
100000. This provision was designed to
enable the Secretary to provide the pub
lie Treasury with funds in ease it should
be necessary to do SO in quicker manner
than could be done by awaiting himself of
the provisions relating to the issue of
bonds. 1t did not become necessary to re-
sort to the issue of such certificates.
Section 33 of the act authorized the
Secretary of the Treasury to borrow on
the credit of the United States 100000
600, or so much thereof as might be neces-
sary to defray expenses authorized on ac-
'ouhl VI tue WilT- anu 10 ISSUE DOHuS there
for in denominations of $50 or some null
hple of that sum, redeemable in coin at
the pleasure Of the United States after 10
years from the date of their issue, pay
able 20 years from such date, and bear
ing interest payable quarterly in coin at
the rate of ) per centum per annum. The
section also contained provision that
The bonds authorized by this section
shall be first offered at par as 4 popular
loan. under such regulations prescribed
by the Secretary of the Treasury as will
give opportunity to the citizens of the
United States to participate in subscrip-
tions to such loan, and in alloting said
bonds the several subscriptions for the
lowest amounts shall be first allotted"
The law also provided that an appropria-
ton not exceeding one-tenth of one per
centum of the amount of the bonds and
certificates authorized be appropriated to
pay the expense of preparing, adyertis-
ing and issuing the same.
1t was decided. under this authority, to
ask the people of the United States to sub
scribe to a loan of $200,OOO.0OO 1t was
believed that that sum, together with the
additional taxes to be derived from the
revenue provisions of the act, would be
sufficient to meet the expenditures which
would be incurred before Congress would
large war appropriations had been made
available only until the 31st of that
month.
The war loan of 1898 was one of the
great successes of the war 1t exhibited
the power of the public credit. and in
creased our financial prestige both at home
and abroad. No sooner had it become ap-
parent that Congress would give the See
retary of the Treasury the authority
above described than the Department be-
gan to arrange for the floating of the loan.
After the report OF the Conference Com
mittee had been agreed to in both Houses.
the Executive approval being certain, ali
the energies of the Department were di-
rectcd toward asking the people of the
United States, the moment the President
should put his signature to the act, to sub
scribe Tor bonds to the amount of $780,
OOOOO0. Late in the afternoon of Satur-
day, June II, the Public Printer was
placed in possession of copy for circulars.
pamphlets, blanks and forms relating to
the call. When the Department opened
for business on the Monday morning fol-
lowing, the immense work of printing had
been done, and 100000 impressions of the
various papers referred to were ready for
delivery. A Mailing Division had already
been organized in the Department. en-
gagged in preparing envelopes so that on
the very day the act received the Execu-
tive approval the Secretary OF the Treas
ury sent broadcast through the land the
call for subscriptions to the loan. Every
effort possible was made to make the loan
what it was intended by Congress it should
be-a popular one.
A POPULAR LOAN
All the banks in the country, both
State and National, were invited to CO.
operate with the Secretary; the great ex-
press companies rendered their services
free of cost; all the money-order post Off
ces were charged with the receipt of sub
and every newspaper in the
country was asked to lend its aid in dis
seminating information concerning the
loan. With few exceptions this was free
ly done, and as result of all these
agencies combined it is probable that few
citizens of the United States were not
aware that the Government had asked the |
people to subscribe to its bonds.
The books of the loan were open for a |
period of 80 days, closing July IA. The
clerical work during this time and sub
sequently was something unprecedented in |
the history of national loans. 1t was not |
possible at the time to utilize any con-
siderabl number of clerks from the regu-
ar force, owing to the fact that the war
lad greatly increased the ordinary bust
ness of the Department in all its branches |
It became necessary, therefore, to organize
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