The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1904-03-21
REVENUE PROBLEM
BECOMING ACUTE
UNCLE SANS EXPENDITURES AL
MOST EQUAL TO INCOME.
Next Congress Will Be Expected to
Provide for Extra Expense
nal Imports Probable-TariR Re-
turns Decrease by Its Own Opera
tion-Goverment Undertakings In
yOlve Fixed Charges.


From The Journal Bureau, Colorado Building,
Washington.
Washington, March 21.-The first
congress Of the new administration
will be confronted with an extremely
acute revenue problem, unless all
signs fail. The present congress is
postponing everything in difference to
the presidential campaign; the next
congress will be expected to do things.
The stream which is now damned
will break forth with redoubled fury.
Nearly all the proposals cost money
and expenditures are already closely
abreast the revenues.
Where will the new income be found
with which to pay the extra charges
occasioned by a service pension. by
shipping subsidy, in case we contract
for one, to man our rapidly increasing
navy, and to maintain all the enlarg-
Ing branches of the government?
Future increases of revenue must
obviously come from internal taxation
rather than from the tariff. This was
the case in 1898, when the extra ex-
pense for the Spanish war had to be
met. Except for a tax on tea, the In
crease came in internal revenue, and
largely in new stamp taxes.
Tariff Yields Maximum.
The tariff in the recent years Of
y
the opinion of most revenue experts,
not far from the maximum of which
it is capable. In certain respects re-
ceipts from a tariff tend to decrease
by their own operation; highly pro-
tected duties. by stimulating home
manufacture, are constantly cutting
off importations and so decreasing
revenue.
Sugar, for example, is one of the
largest contributors to Uncle Sans
budget, but if the beet industry should
ever gain a substantial foothold, this
source Of the custOm-house revenue
would be materially reduced.
Our annexations Of tropical terri
tory are already having that effect.
rates on Philippine products, which
seems to be promised in return for
subjecting the Philippine trade to the
extra cost Of the American coastwise
laws, would still further lessen sugar
tariff yield, for the Philippines can
doubtless do something towards sup
plying our market.
A new levy Of internal revenue
taxes in time Of peace will not be
popular, and any party which has 1t
to do deserves pity. 1t would be just
the luck of the democrats to come
into power when this had to be done;
perhaps the present surplus may tide
the government over until the last
congress Of next administration, when
a democratic house, should one be
elected, might have this problem to
meet.
Dependant Upon Crops.
How soon this need Of revenue will
become pressing depends largely upon
general conditions Of business; pros.
perity always swells receipts, both in
ternal and customs, and adversely
shrinks them. Under good times
there might be several years delay
before this need Of additional revenue
arose, while a year or two Of bat
crops would bring it much sooner. Blu
whenever the need actually comes, al
unfortunate load will fall on thu
shoulders Of the party that seems tenn
porarily responsible.
1t should always be remembered
that 90 per cent Of the federal ex
penditures are beyond the power o
the existing congress to change. Thu
most penuriOus man alive, assuming
that he believes in paying duly con
tracted debts, could not at once reduce
expenditures much, were he given tn
authority of a car. It is only whe1
new things are started that the indi
viduaIs disposition to be liberal o
economical shows itself: everything
which the government starts has t
be maintained, and its expenses be
come fixed charges,