The Washington times., 1909-03-12
Treasury's Condition Calls
for Drastic Measures to
Raise Revenues.
ACT OF CONGRESS
is NOT NECESSARY
Financial Matters in Much Same
Shape as During Cleve-
lands Administration.

War taxes and an issue of bonds are
promised developments in Government
finances next summer.
Information from a high source is to
the effect that the Treasury is in no
better condition than 1t was at the time
when President Cleveland was obliged
10 make q bond issue in order to meet
The current expenses OF the Government
The House Ways and Means Com
mittee has decided to add most OF the
war taxes OF 1898 and some new ones
10 the tariff bill, but 1T seems doubtful
whether the additional revenue provided
viii meet the tremendous needs of the
Government
II seems particularly certain that this
revenue will not be available for the i'm
mediate needs OF the Treasury, and that
supply of money must come from an
other source. It is asserted that claims
against the Government to the amount
OF 5O,O0O.o00 have accumulated within
the past two or three months, payment
having been delayed on account OF
shortage in cash.
Cortelyou's Fear.
Further Secretary CorteIyou is credit
ed with having been burdened by the
term that bonds would have TO be is
sued during his term of office. 1t was
with great relief that he turned his
office over to his successor without hav-
ing been obliged to offciate in a money
raising enterprise.
There are two ways open to the Ad-
ministration 10 raise money without sc-
tion by Congress. An existing law au-
thorizes the issue of sSS.O0o.OOO worth OF
Panama Canal bonds An act passed
in 1905 TO provide for war emergencies,
authorized the issue of certificates of
Indebtedness carrying per cent inter
est The use of this privilege was not
rendered necessary during the war
During the panic OF 1907, however, a
number of certificates We're issued for
a period OF sixty days to tide over the
emergency.
II Is stated that II the pending claims
against the Government were paid the
balance in the Treasury would be less
that the amount on hand when Grover
Cleveland made his famous bond issue.
Tax on Coffee
In its efforts 10 supply the Govern
rusnt revenues. the Ways and Means
Committee has provided that about
S65. 900 600 or S7oOO0,0OO be raised by spe-
ctsi taxation and the balance needed
VIII. It is expected, be provided by the
customs revenue Some Of this revenue.
however. will be slow in coming into
the Treasury.
AS ths bill now stands. for instance.
81 provides a tax OF cents a pound on
coffee, which is considered TO be good
for s4o.OOo,OOO a year It is well under
stood, however. that a year or two must
al ha
this tax.
Immense stocks Of coffee in Brazil
and Europe will be brought into this
country while coffee is stin on the free
t1st and before the new tariff takes eff
feet. To a lesser extent the same IS
true OF tea, on which, according 10 re-
ports at the Capitol, 1t Is proposed TO
raise about 100000 a year.
It IS stated that other taxes to he
levied by the bill as reported 10 the
House will be an increase Of from s25
10 so on licenses for retail liquor deal
ers, taxes on bank checks, property
transfers, cigarettes, and on Inherit
snces. a rise of 30 cents per barrel NAV
also be made on the tax on beer.
Iron Ore Free.
Iron ore, on which the Dlngiey bill
placed tartT Of 40 cents per ton. is to
be placed on the free list. The irnpor-
tation OF ore in 1907 amounted TO 81. 90
tons. on which the Government received
a revenue OF a little over 10000 This
amount VIII be saved TO the iron mas
ters and the importations will be large
ly Increased.
A finish fight is being made by the
lumber men 10 get better terms than
the committee has voted TO give them
AS IL stands. the bill makes a tariff on
rough lumber 81 per Thousand feet and
leaves the Dingley rates on manufact-
ures of wood. The Dirgley rate on rough
lumber was 81. and the lumber men are
striving earnestly TO get a rate Of at
least $1.50.
There was no particular contest over
wool because II interests such a great
number of farmers. The only changes
that have been made have been to ar
range the rates on different classes OF
wool so as TO make them uniform, sew
eral Inequalities having been develop
ed in the practical operation Of the
Dingley law.