Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1914-04-30


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 custom house.
No War Tax for Six Months.
Washington. = The governments
finances are considered to be in ex-
cellent condition The treasury Off
Gals 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
mo plans are being considered for
raising a war fund. l have consulted
with the secretary of war and the Sec
rotary of the navy and they both as
sure me that the, current appropria-
lions for the army and navy will be
sufficient for the present needs. Sec
rotary Daniels told me that it would
cost no more to maintain the navy
and the marine corps in Mexican wa
ters than in the waters of the United
States
eff we are forced into a prolonged
war with Mexico, which I 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-
fcan war. The extraordinary taxes
then imposed increased the revenues
Of the government approximately
500, 100000 a year, and the same
taxes applied today would yield even
larger return"
There was talk Of new issue Of
$200000,000 of bonds out of the au-
thorized issue of $240 100000 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-
gress.
1t was pointed out that President
Wilson has authority under a section
of the Payne-AIdrich act of 1909,
which has not been repealed by the
Underwood tariff act, to raise $780,
600, 900 from bond issues, If necessary,
to defray the expenses Of war. IN
der section SO of the Payne-Aldrich
act, the secretary of the treasury can
use $250,00O, 900 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 $20O,ooo,00o.
Under section 40 also, the secre-
tary can issue per cent bonds up to
5000, 100000, it being specified that he
may take such action if he deems it
necessary. The section Of the law per-
hitting the secretary Of the treasury
to raise $200,000,00O for emergencies,
reads as follows:
THAT section 80 of the act providing
ways and means to meet war expendi-
lures, approved June g., 1898 (the So
called Spanish war stamp act), be and
the same is hereby amended to read
as follows:
"That the secretary of the treasury
is authorized to borrow from time to
time at a rate Of interest not exceed
ing 8 per centUm per annum, such
sum or sums as, in his judgment, may
be necessary to meet public expendi-
lures. and to issue therefor certif-
Gates of Indebtedness in such form as
he may prescribe and in denomina-
tions Of $50 or multiples thereof, and
each certificate shall be payable with
the interest accrued thereon at such
time, not exceeding one year from the
date Of issue, as the secretary of the
treasury may prescribe; provided,
that the sum of such certificates out
standing shall at no time exceed $780,
100000 and the provisions of existing
law respecting counterfeiting and 9TH
er fraudulent practises are hereby Ell
tended to the bonds and certificates
of Indebtedness authorized by this
act"