Mexico Missouri message., 1909-03-18
GOVERNMENT MUST FILL TREAS.
uRV DEFICIT AS BIG As
CLEVELAND FACED.
TWO ISSUES NOT USED YET
President Taft Submits First Draft Of
Special Message, to Rs Read
Monday, TO Members Of
Cabinet.

Washington, d. @. - War taxes
and an issue Of bonds are promised
Developments In government finances.
Information comes from a high
source that the treasury is In no bet.
ter condition now than Il was when
President Cleveland was obliged to
make a bond issue In order TO meet
the current expenses OF the govern.
ment.
The house ways and means commit
tee has practically decided to add most
Of the war taxes OF 1896 and some
new ones to the tarlff bill. and Il seems
doubtful whether the additional rev.
enue provided will meet the tremen.
dous needs OF the government.
There are two ways open TO the nd.
ministration to raise money without
action by congress.
Two Issues Not Used Yet.
An existing law authorizes the issue
OF s33,00O.00O worth Of Panama canal
bonds. An act passed in 1898 to pro.
vide for war emergencies authorized
the issue Of certificates Of indebted.
ness carrying per cent interest. The
use Of this privilege was not rendered
necessary during the war. During the
panic OF 1907, however. a number Of
certificates were issued for a period Of
60 days to tide over the emergency.
In its efforts to supply the govern.
ment revenue the ways and means
committee has provided that about
$G5,O0O.0OO or S7O.OOO,O 900 be raised by
special taxation. and the balance need.
ed will, It is expected, be provided by
the customs revenue. Some Of this
revenue. however, will be slow IN COM
ing into the treasury. AS the bill
now stands. for instance, II provides
n tax Of cents a pound on coffee,
which is considered to be good for
$40,000.000 a year. Il Is understood,
however, that year or more must
elapse before the treasury profits from
this tax.
Iron Ore TO Go on Free List.
other taxes to be levied by the
bills reported TO the house are expect
ed to be an increase of from $25 TO $50
on licenses for retail liquor dealers,
taxes on bank checks, property trans
fers. cigarettes. and on inheritances.
A rise Of so cents per barrel may also
be made on the tax on beer. Iron ore,
on which the Dingley bill placed a
tariff of 40 cents tone. Is to be placed
on the free list. The importations Of
ore in 1907 amounted to 1000 tons,
on which the government received a
revenue Of little more than $500. 900.
This amount will be saved to the iron
masters and the lmportations will be
largely increased.
A finish fight IL being made by the
lumber men to get better terms than
the committee thus far has voted TO
give them. As II stands, the bill makes
the tariff on rough lumber 81 per thou
sand feet and leaves the DIngley rates
on manufactures of wood. The Ding.
ley rate on rough lumber was 81. and
the lumber men are striving earnestly
TO get a rate OF at least $3.50.
No Contest Over Wool.
There was no particular contest
over wool, because It interests great
number OF farmers.
The meat trust and the stock men
will depend upon the senate 20 restore
the tarlff on hides. which has been
removed by the house committee.
II is said the bill viii show an In
crease In the tariff on pottery that
will be accomplished by either In.
creasIng the rate or by improving the
method OF getting the true valuation
OF imports.
The tarifg viii be raised on window
and reduced on plate glass.
The rate on rails. Il Is stated. will
be reduced from 81 TO $3.50. snd other
steel products in proportion.
President Taft at Fridays cabinet
meeting submitted TO his advisers the
frst draft OF his special message
which will be read at the opening OF
the extra session next Monday.
The message will be comparatively
brief II win impress upon congress
the necessity Of 4 thorough and hon
est revision Of the tarlff. but viii make
no specific recommendation a. C
rates. II is expected the message will
aIao call attention to the state Of ths
treasury and suggest that congress
consider other means Of raising nsces
sary revenues to meet the growing de
fciencles.
/ .Ha ~--~--~-------a------7-7-
plan Gigantic Warshouss.