Evening journal., 1909-03-12
WAR TAXES And
BOND ISSUE?
Government Treasury Short
Of Money and Congress
Will be PerpIeXed
CUSTOMS REVENUE WILL
BE SLOW COMING IN

BY United Press Leased Special Wire.
WASHINGTON, March 12.-War
taxes and an issue of bonds are prom
ised developments in government
finances.
Information comes from a high
source that the treasury is in no bet
ter condition now. than II was when
President Cleveland was Obliged TO
make a bond issue, in order 90 meet
the current expenses Of the govern
ment.
The House Ways and Means Com
mittee has practically decided TO add
most of the war taxes OF 1SsS, and
some new ones 10 the tariff bill, but
it seems doubtful whether the addi-
tional revenue provided will meet the
tremendous needs of the government
The proceeds OF the new tariff will
not be available for the immediate
needs Of the Treasury and supply OF
money must come from another source.
It is asserted that claims against the
government 10 the amount of $4,000
600 have accumulated within the past
two or three months, payment having
been delayed on account of shortage
in cash. Ex- Secretary Cortelyou is
credited with having been burdened
/ by the fear during the last three
months, that bonds would have to be
issued during his term OF office. II
was with great relief taht he turned
/ his portfolio over TO his successor,
without having been obliged to ofIiciate
in money raising enterprise.
There are two ways open to the ad-
ministration 10 raise money without
action by Congress. An existing law
authorizes the issue of $4,000. .0OC
worth Of Panama Canal bonds. An act
passed in 1898. TO provide for wai
emergencies, authorized the issue OF
certificates Of indebtedness carrying
3 per cent. interest. The use of thi.
privilege, was not rendered necessary
during the war During the panic o
: 1907, however, a number OF certih.
Gates were issued for a period of sixt.
days to tide over the emergency.
It is stated that If the pendinl
claims against the government wer
, paid. the balance in the Treasury woul,
be less than the amount on hand whel
Grover Cleveland made his famous
bond issue.
l its efforts 10 supply the govcrnmen
revenue. the ways and means com
Z mittee has provided that about $65,
! 100000 or 100000 be raised by spec
Z ial taxation. and the balance needle
8 win. II is expected be provided by tn
customs revenue. Some of this revenue
| however. will be slow in coming int
the treasury. As the bill now stands
for instance, il provides a tax OF fou
cents a pound on coffee, which is con
sidered to be good for s4O.OOO,O00
year. 1t is well understood. however
that a year or two must elapse befor
the treasury profits from this tax. I'm
mense stocks of coffee in Brazil, an
Europe. will be brought into the coun
try while coffee is still on the free lisi
and before the new tariff takes effec
To a lesser extnt. the same is true O
, tea. on which. according 20 reports a
! the capitol, IL is proposed TO rails
about S5000000 a year.
Other taxes to be levied by the bi
as reported TO the House are expecte
q to be an increase OF from S25 to So
E on licenses for retail liquor dealers
E taxes on bank checks, property trans
| fers, cigarettes and on inheritances.
l rise of 80 cents per barrel, may ais
5 be made on the tax on beer.
Iron ore. on which the Dingley bi
{ placed a tariff of 40 cents per ton,
, TO be placed IN the free list. The i'm
e portations OF ore in 1907 amounted I
Q 511,000 tons, on which the governmer
4 received a revenue of little owe
! $500 900. This amount will be save
{ to the iron masters. and the importa
tions will be largely increased.