The National tribune., 1903-08-06
GOO,O00.OO

| war expenses for SIN
months, beginning July l,
1888, in general def
| cheney act ........... 226,GU4 ,Zbl. N
Expenses of bringing home
remains of soldiers ...... 2OO,OOO.Ot
Total ........ .$361. .7SS, ,O95. Il
Committees in Congress conferred will
the heads of various Departments as t.
their necessities, and on May 3 the Sec
retary of the Treasury appeared before
the Senate Committee on Finance ant
was questioned as to the necessity for i'll
creased revenues and appropriations. The
result of these and other conferences was
the War Revenue Act of June 13, 1893
| Pending the discussion of its provisions
i'll the House and Senate, the available
cash balance in the Treasury, which OF
April % had been reduced to 500, ,364 OOG
or rather, as previously explained to $40,
10000 or So, 100000, could be relied
upon to furnish the ready means fol
carrying on the operations of the war.
1t ordinarily happens that any scheme
by which new taxes are to be provided
must fail of being thoroughly efficient in
time OF war by reason of the fact that
much time is consumed in placing it III
| operation. The main point, aside from
avoiding unjust and oppressive taxation
| i'll framing the war revenue legislation OF
1898, was to place the Treasury in Il posi-
| ton where it would be at once in receipt
of additional funds. 1t was beyond the
power of any one to tell how long the
war would continue. Experience drawn
from other perilous times counselcd in
favor of two courses for raising money
one by borrowing, the other by levying ad-
ditional taxes. 1t was obvious that the
/ " of an hn SaI
by taxation within the time it would be re-
quired for use, nor could any great sum be
| raised within short period without OPP
pressing the people and seriously affect
ing the financial, commercial and indus
trial interests of the country. On the
whole, il seemed best (and both the pres
ent and future will bear witness to the
fact that it was best to borrow at once
sum sufficient TO maintain active and
aggressive operations. and at the same
time, by the imposition of additional
taxes, to give assurance to intending sub
scribers to the contemplated issue of bonds
that the war loan would have behind it
a substantial increase in the revenues.
With the beginning of the new calen-
dar year, the tariff 'act. which had become
operative July "a, 1897, had begun to full
I'll the promises of its supporters that it
would provide sufficient revenues for the
ordinary needs of the Government. Close
observers of its subsequent operation
were convinced that when full recovery
had come from the abnormally heavy i'm
portations of the Spring of 1897 the act
would produce all the revenue that was
required. 1t therefore was not deemed
prudent to modify any of its provisions
In explanation Of the bill to provide ways
and means to meet the war expenditures
Mr.. Dingey said ff
INTERNAL REvENrE LEGISLATION.
"They tthe Committee on Ways and
MeansJ naturally have had recourse to
tie legislation of the period of the civil
war. when so large an amount had to be
raised, and they have found, after a care
full consideration Of the question of taxa
ton, that on the whole it is better at the
present time, and we trust that that may
be all that may be necessary, that about
100000, 600 additional revenue should be
raised, and that entirely through internal
revenue legislation. Hence, the war reve-
nue. bill which has been reported provides
for internal revenue taxes exclusively
These taxes have been selected first, be-
cause we have the machinery for the col
lection of them now, and they can be col
lected with but slight additions to the
force and with but slight increase of pX-
pense. We have selected them also be-
cause they were source of revenue sue
cessfully seized upon during the civil war,
and because they are taxes either upon
articles of voluntary consumption or upon
objects where the tax will be met by
those who are ordinarily able to pay them:
and we have refrained from putting a tax
in n direction where it would be purely
upon consumption, unless the cOnsump-
tion were an article of voluntary consump-
ton, so that the consumer might regulate
his own tax, following what is the nc
cepted rule of taxation in all countries.
with a view of imposing the least burden
and disturbing the business of the country
as little as possible"
The bill was introduced in the House
April %, 1898, and it passed that body
April 30 by a vote of 1S1 to 131. 1t was
the subject of much consideration by the
Senate Finance Committee, and with
amendments was reported to the Senate
May II. 1t passed that body June 4 by
vote of 4S to %. The report of the
Conference Committee was agreed to in
the House June 0. and in the Senate June
10. Three days later it received the ap-
proval of the President and by the terms
of the act went into effect the next day.
except where in some cases July l was
specified.
iioi " liiS p"sSdSc VI lHe dct, inc
more important internal revenue taxes
were grouped under three heads. Those
under the head of spirits yielded, for the
fiscal year 1898, $92, 500, 900: those under
the head of tobacco, $4,000, 600, and
those subject to tax under the head of
fermented liquors, $39, 100000. BY the
war revenue act, the taxes on fermented
liquors and tObaccos were doubled, while
there was no addition made to those on
spirits. Some comment has been made as
to why this third group was not also sub
jected to additional taxes. The main rea
son lies in the fact that with spirits al
ready taxed $1.1O per proof gallon, it was
believed the revenue-producng capacity
of that group had been fully utilized, if
not exceeded. There is a maximum reve-
nue. point in all taxes upon articles which
are the subject Of voluntary use. 1t is
doubtful if n tax of 1920 a gallon on
spirits would have added greatly to Treas
ury receipts. In addition, the legitimate
trade in spirits by reason of over-produc-
tion was already depressed, and additional
taxes in this direction would have proved
neither profitable to the Government nor
anything but ruinous to the private inter
ests involved.
A tax of 10 cents n pound on tea i'm
ported into the United States was proyid-
ed, and it was estimated that the revenue
10 be derived from this source would
amount to not less than SIC, 600 year.
1t had been seriously contemplated. when
b. ~