The Washington times., 1914-04-23
PLENTY OF MONEY
ON HAND FOR WAR

The financing of the war with Mex
ico is not now worrying leaders in
Congress who point out that the
Secretary of the Treasury has the
means of raising all the money which
may be needed. If the struggle is not
prolonged. il is not expected war
revenue measures will be considered.
70 il Is to be a real war. a special
TAX, probably the same at the Span
Ish war tax, will be imposed. Mean
while, the Treasury Department, I'M
der two sections of existing law, can
pour out all the millions needed.
When the Democrats revised the
tariff they left two provisions of the
Payne bill as they were. One of these
authorized the issuance of Panama
ANAL bonds-which have not been is
sued-and another authorized the
Secretary of the Treasury to issue at
any time not to exceed s200,000,090 in
certificates Of Indebtedness.
If Pinch Comes Tax is Handy.
Majority Leader Underwood esti-
mates that If ii came to pinch
where money is needed quickly the
Secretary of the Treasury can go right
ahead ard Congress can think about
a special war tax later
II is estimated that approximately
$500. 100000 of war revenue is in
sight when needed, although Congress
leaders do not think the present
trouble is going to cost anything like
that amount
Section g Of the Payne tariff law.
which was undisturbed by the Under
wood bill, authorizes the Secretary OF
the Treasury ito borrow on the credit
Of the United States, from time to time
rs the proceeds may be required to de-
fray expenditures on account of the
Panama Canal and to reimburse the
Treasury for such expenditures already
made and not covered by previous. is
sues of bonds. the sum of 2s4, 569, COO
which sum, together with the $Si,6Sl 81
already borrowed from issues of 2 pei
cent bonds. equals the estimates of the
lsthmian Canal Commission TO cover
the entire cost of the canal and
10 prepare and issue therefor coupon oil
registered bonds of the United States il
such form as he may prescribe and ir
payable fifty years from the date. OF
issue and bearing interest at a rate not
exceeding 3 per cent, etc"
Canal Bonds Available.
House leaders who have made a hur.
'NNu tAS~IliiIIoAISH VI lilt SlludllOH eSIl-
mate that at least 800. 10000 can be
raised by disposing Of these Panama
Canal bonds
Section 70 OF the Payne act which was
also Unrepealed. authorized the Score
larry of the Treasury Ito borrow from
time to time. at a rate of interest moi
exceeding 5 per cent per annum. such
sum or sums as. IN his judgment, may
lie necessary to meet public eXpendi
lures, and 70 issue therefor certificates
Of Indebtedness in such form as he may
Prescribe and each certificate 81
issued shall be payable. with the inter
est accrued thereon, at such a time no
exceeding one year from the date OF IT.
issue as the Secretary of the Treasur,
may prescribe: provided that the sun
of such certificates outstanding shall a
no time exceed 10000 CO.,
Under these two sections. ACCORDING
10 leaders in Congress, the Treasury Il
in no danger of war deficit If it be
comes necessary to impose a special wa
tax similar 10 that which netted $50, 0O0
20 for the Span 'sh-American war Con
Eress will promptly take up this phas
~ the revenue question to repla c.
whatever funds may be paid out of tn,
Treasury through the sale of Panam:
canal bonds, certificates of Indebtedness
or otherwise.