The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1905-09-28

| increasing treasury receipts will
make it unnecessary for congress to
undertake extensive revenue legisla-
ton at the next session. He thinks
ton of expenditures will perhaps keep
the deficit from increasing, and pos
sibly reduce it materially.
In this connection he offers the fol-
lowing suggestion regarding a possi-
BILE new source of revenue: There is
one small source of revenue, which
we nave overlooked up to this time,
that may be inquired into at the COM
| ing session. This is the matter of
placing a suitable tax upon patent
medicines containing large percent
ages of alcohol. The commissioner
of internal revenue a short time ago
| rendered a decision that affects these
| medicines, but his decision deals with
| those medicines that have compare
| lively little medicinal qualities and
contain much alcohol. 1t seems to me
that any patent medicine containing
large quantities Of alcohol, regardless
Of it's medicinal ingredients, ought to
pay tax in accordance with the pro-
portions of alcohol contained. 1 have
not gone into this question fully, but
L shall investigate it with care"
Mr.. Tawney is one of several con-
gressmen having this same subject in
mind. The patent medicine people see
that a fight is ahead and propose to
meet it. They will resist efforts to
impose special taxes upon them.
They claim that the alcohol that is
used has already been taxed. The po-
sition of members of congress who
apparently favor additional taxes is
that these medicines are widely used
i'm prohibition communities, where
even the mildest of alcoholic drinks
are excluded. 1t is alleged that the
effect is bad on the people, who exceed
the directions and become confirmed
in their use of the alcohol in the med
icines
The fact that the deficit of the
treasury so far this fiscal year is only
$13,504,OSS, against $2163S,291 at this
time year ago, is considered an in
dication that the situation will not be
bad at the close of the year.
Treasury Opinions and Figures,
Many treasury experts think there
may be run of expenditures in the
next few months that will place the
treasury as far behind as ever. The
receipts of Uncle Sam so far this fis-
cal year amount to $12S,7952O1, while
the total to this time a year ago was
s121, 1892, Alan increase for this
year of about $7,5O0,OOO. This increase
is largely in customs revenues.
Expenditures in the present year are
not falling behind last year to an
extent worth mentioning. The total
paid out to date amounts to $142,299,-
24O, as against $142,93O,779 year ago.
1t is almost the unanimous belief that
The expenditure of the present fiscal
year, which ends June 3d. 1906, will
greatly exceed those of the year lust
ended. the receipts will have to hold
their present increase to keep the de-
felt down below that of the last fiscal
year.
Effect on Railroad Rate Regulation.
These treasury figures and opinions
are interesting at this time, when the
public is trying to ascertain the prob
abilities for revenue legislation at the
next session of congress. A treasury
situation demanding revenue legisla
ion would undoubtedly give aid and
comfort to those interests which OPP
pose railroad rate legislation. These
interests would endeavor to focus
public attention on revenue matters,
,huS hoping to Sidetrack the railroad
question. For this reason the friends
Of railroad legislation should keep a
sharp lookout on the federal treasury
for the next few months.
Senator Elkins, leader of the rail-
road party in congress, sees the pos
sibilities of this situation, for in a New
ability of tariff and general revenue
legislation with much seriousness,
will probably be necessary next win