Saturday news. (Watertown, S.D.) 19??-19??, 1914-10-22
Congressman Burke Vigorously Protests Against tic Policy II Tsx
ing the People Upon : War Footing il Time d Peace when
Other Means Are Available for Meeting the Enersency-cur.
tailment of Expenses Suggested a 4 wise Substitute.
(Eztracts From Congressional Record, Sept. q, 1914

Iuted throughout the country. It is deposited # course, On cali.
From this statement, and iti s verified BY the treasury statement
1.-THE government has now on deposit IL the national banks $%75,oooyooe
UNDERSTANDING that it is subject to call, as the president states. In adj
las shown by the statement of September 90, about $~44,OoO,oOo, So on
THAT day we had on hand and available nearly $~l2oO0o,ooo. Until
people of $1o5 100000 annually, as proposed BY this bill, when we
3are at peace with all the world and when there is not even d ikel.
ahood of our getting into war?
The president in his message says that it would not be desirable
lat this time to begin drawing from our deposits in the banks and i
Twill quote exactly what he did say on this point:
I need not point out to you what the probable consequences Il incon
fvenence and distress and confusion would be if the diminishing income Of
This means that rather than take money BELONGING to The Inited
Estates deposited with the banks, upon which they are only paying
" per cent interest, we should tax the whole people. When an in
Individual deposits money in a bank, it is for the purpo of having it
when needed, and who would Be s. magnanmons Or generous as to
borrow or tax himself in order to favor his bank BY leaving his
Interest, when he might need what he had IN the bank, or a portion
Of ii, to meet the expenses Of his business and his living; and yet that
rs exactly what IS proposed by the president in recommending the
Legislation containd in this bill.
1t has been suggested in this debate that the money that will be
becomes a law, viii probably be deposited with the same banks that
Pow have az ,d the s7 2 oes9se !. & SIS suggests agaas that II y would 9I BE appro-
fhe internal revenue, and for other purposes so as to read, sA bill
taxing the people to further aid certain favored national banks, q
according to the most ardent advocate Of this bill, including the
Rp president the very largest amount that would be required to supply
out Of the banks each month, and it might not be more than 100000
1o r. 100000 How taking from 100000, q perhaps $4,000
OW, from the banks each month would cause distress BY reducing
the circulation more than taking it out Of the pockets Of the people
ENIr. Mann) says thatthe only reason he can See for It IL that we may
a1ddeeal more kindly with the banks which owe the government the de-
sposts.
not necessary to raise more money at this time, and before / conclude
money is required, or should be required, there is ample means pro-
Flded by existing law to meet the emergency.
The law raising war revenue enacted in 1898 provided for issu-
ing certlhcates OF indebtedness. Section 332 Of the act, which was
not repealed, is as follows:
Sec. 80. That the secretary Of the treasury IS authorized ii borrow
such sum or sums as, in his Judgment may be necessary to meet public *
pendimes and to issue therefor certhacates 81 Indebtedness ID such form as
@e nay prescnbe and in denominations Of $50 or some multiple Of that sum:
and each certificate 50 issued shall be payable. with the interest accrued
t ~ q such time not exceeding one year from the date Of its issue AZ
me secretary OF the treasury may prescribe: Provided, that the amount Of
8suen cerhhcates shall at no time exceed s1o0OOooo0. 4 {
This section was designed to provide for any deficiency which
u occur Mp to $lO0000O00, and it was not repealed, but purpose
y lft as permanent law il order that the president might issue
3short-tme certificates to meet any emergency; and the president
seems 70 think an emergency does exist now.
there is also q law authorizing the issuance of $375, $50 bonds
~ Pc e sotd TO pay the expenses of# constructing the Panama Canal
4 on luer a republican administration and a republican tariff law it was
& = neassayy to dispose Of these bonds, amounting, with the prem
sao7o % ~ ~ ,s0' : tsss paying z ss oat Ct t he's surplus roaa. y 3 ths IS general ,asa fund g
j fo9seo zoe which under The Law, car be disposed Of for the purpose!
9 "a that fund and expended in the canal construction.
s prudent individual, when disaster of any kind oyertakes him
failing his sse expenses ae an n' h 1eanal { n 0,alSg ape a;s;ds nlana res0r' a : t aua,
= he a. not make ends meet, he borrows money, either at the bank
ahovever, IS not willing that fhs government shall meet ills emer.
geney py Issuing certificates or selling bonds, and q his message
And We ought not ID borrow / !. TO sen bonds would be to make q
4 most untmely and unjustfdabie demand 4 i the money market; untney
because this is manifesuy q tie time 4 Withdraw working capital from
So oh uses e pay the governments bills; uniustidable, because nnneceasarys
These are not the circumstances this III at this particular moment and
II ms particular eHgency nat ne market ~ borrow large sums f money
This Is more logic that ! Can not omprshend-tha III withdraws
ZONE capita. IS borrow money but to take y from the people sby
Haxlng them will not
TheS total appropriation for. the fiscal year ended June os 1913
r. s. l ssx y 1as,ss s ssa g gaas ~ asa IT 4 s.Rsass sasla e fsy Is /. 5iF St and lsaa hsEs
an adninstratiion of e oa 100000
It Mil bs Interesting ID compare the appropriations FOR the pres
Tsafsl MISUNDERSTANDING Safa agx1I ading sysr AZ 6ssrbss ats
M ass HssAsS SSos2 III 81 B