The state herald., 1914-05-01


What shall we do?" asked secre-
tary Daniels.
Tell Fletcher to seize the custom
house." replied the president without
hesitation.
Good night" said the secretary.
The telephone conference ended and
In few minutes wireless dispatches
were on their way to Rear Admiral
Fletcher. He received the message at
10 a. m. and an hour later American
marines had landed and taken posses.
sion OF the cuctom house.
No War Tax for Six Months.
Washington. = The governments
finances are considered to be in ex-
cellent condition. The treasury off,
cials informed the house leaders that
there will be no occasion for six
months. at least. to worry about rails
ing war revenue.
Chairman Underwood of the ways
and means committee said:
NO plans are being considered for
raising war fund. have consulted
with the secretary OF war and the sec
retary of the navy and they both as
sure me that the current appropria-
tions for the army and navy will be
sufficient for the present needs. Sec.
retary Daniels told me that II would
cost no more to maintain the navy
and the marine corps In Mexican wa.
ters than In the waters OF the United
States
IF we are forced into a prolonged
war with Mexico. which ! do not be.
lieve will happen, We can easily ar
range to raise the revenue necessary
to finance It by the same measures as
were taken during the Spanish.Amer-
lean war. The extraordinary taxes
then imposed increased the revenues
OF the government approximately
Sio0,00o.o0o n year. and the same
taxes applied today would yield even
n larger return"
There was talk OF a new issue OF
100000. 900 of bonds out OF the au.
thorized issue of s24o. .o0o.0 900 Panama
canal bonds. which are still In the
treasury. but Secretary McAdoo au.
thorized the statement that no such
action was planned. The bonds are
available at any time and can be is
sued at the pleasure Of the president,
without any further action by con.
sress
II was pointed out that President
Wilson has authority under u section
OF the Payne-Aidrich act Of 1909.
which has not been repealed by the
Underwood tariff act. to raise $3.50.
100000 from bond Issues. II necessary,
TO defray the expenses OF war. I'm.
der section 80 OF the Payne.Aidrich
act, the secretary OF the treasury can
use $3.50. 100000 OF the bonds TO re-
coup the treasury for moneys used In
the building OF the Panama canal"
which have never been issued.
Wilson Could Raise 5000. 900 900.
Under section 40. also. the secre.
tary can issue 3 per cent bonds up to
5000. 100000. Il being specified that he
may take such action n he deems Il
necessary. The section os the law per.
mitting the secretary OF the treasury
to raise 5000. 100000 for emergencies.
reads M follows;
THAT section 32 OF the act providing
ways and means TO meet war expendi.
lures. approved June 81. 1898 tthe so.
called Spanish war stamp acD. be and
the same is hereby amended to read
ne follows:
That the secretary OF the TREASURY
In authorized TO borrow from time to
tims nt a rate OF interest not exceed.
Ing : per centum per nnnum. such
sum or sums an. In his judgment. may
be necessary to meet public erpendl.
lures. and TO issue therefor certin
Gates Of indebtedness in such form as
he may prescribe and In denominn.
tiona OF $50 or .muitipics thereof. and
each certificate shall be payable with
tho interest nccrucd thereon nt such
time. not exceeding one year from the
date OF issue. ns tho secretary OF the
treasury may prescribe. provided.
that tho sum OF such certificates out.
standing shall at no umc exceed 5000.
100000 and tho provisions OF existing
law respecting counterfeitins and 9th.
or fraudulent practiscp are hereby or.
tended to the bonds and certificates
Of indebtedness authorized by this
act"