The West Virginian. [volume] (Fairmont, W. Va.) 1914-1974, 1918-09-10
'HlV lie Monet NAs
RAISED FOR 50 VAR
Small Denomination Bonds
Wede Issued for First
Time Then.
(By Associated Press)
War.Tax- Article No. 8.

1Gse-3AEG4A-4C w. Ss
WASHINGTON. Sept s.-New war
taxes always invite comparison While
the plans for raising the money to
carry on the United States share in
the world war more closely resemble
those adopted during the Civil war.
in the minds Of most people they will
| he consfderd in the relation to the
system by which the war with Spain
was financed, and that, of course, is
because the Spanish-American war
was of such comparatively recent date
| that it is still fresh in the minds OF
most people. In fact, the last $16s-
OOO, 900 OF Spanish-Amerfcan war
debt was paid on only a few weeks
ago, but that fact, which would have
beer Of potent interest in times OF
peace. passed unnoticed as it was less
Than a days cost of the present war
| to the American people.
Coming as the Spanish war did az
ter a political change in the national
! administration, it was only to be e8-
pected that some sweeping changes
in the financial system Of the country
/ would take place. The panic OF 1Sy"
had left its mark upon the nation s
business, and while industrial eonol ono
lions had begun to assume brighter
| senect when President Mckinley took
bjs seat the treasury was feeling a
idefcit Of about 100000. which,
| sccording to the political leaders then
4 Is power was a'a 70 ''s '-s-r =
Although the tariff issue had been
bu+ a minor consideration during the
campaign of 1896, President Mcktn-
lev, Immediately called for an extra
| session of Congress with the idea OF
| considering the need of further rev
| enues. This resulted In the adoption
| and passage of the Dingley bill, which
| because It formed the backbone OF
| Snanish-American war revenue, must
| he given consideration in a discus
sion of that subject
The Dingley law was thoroughly
nrotectiye in its provisions and called
! for. the restoration of import duties
unon many articles, which, under the
! Wilson tariff law of 1894, had been
admitted free. On some commodities
! a compromise was effected between
! the duties of 1890 and those OF 1891
| in a, few instances the Wilson rates
were permftted to tstand. but in most
| others the rates were greatly lnereas-
ed.
It nav be seen that a substantial
sniff. Nevertheless the Spanish war
brought about the necessity OF an
emereency internal revenue, and the
loan act which authorized the issue
Of 5000 OOO, 900 OF three per cent
| bonds was supplemented by the war
revnue bill of June 10, 1898. Con-
gress also voted $50, 100000 for ma
tional defense, this to be expende by
the President free of all restrictions.
There was no need to disturb the
provisions of the Dingley tar1n BILL
which, in spite of the disturbed com
mercial conditions, was funcuontnG
admirably. but Congress devoted It's
entire attention to the placing OF new
| internal revenue duties The feature
of the war tax bill, or rather the pro
vision which may be considerd fea-
+nre because of its novelty, at the
time, was the inheritance cause
| through which a tax was placed upon
! Ieqacies. ranging from three-quaEters
of one per cent on direct heirs to i've
| ner cent on distant relatives and
s+rar gers with a progressive increase
in the rates as the estate increased IN
size reaching a maximum of fifteen
70 taxes on tobacco and fermented
| lio1,ors we're doubled, while banks,
brokers. proprietors of theaters,
] bowling allies, billiard rooms and
amusement 0laces in general were
| taxed in a. special manner. A large
variety of commercial transactions
! involving the use OF documents were
subjected to a tsamp tax and these
stamps were also placed upon express
and freight receipts, telephone ana
| telegraph messages, insurance pom.
cies and many other legal ana ocE o3
mercial papers. Duties were also col
lected through the use OF stamps upo9
na+eDt and proprietary medicines ana
tofiet articles, chewing gum and
Wines. An excise duty was placed
mon the refners of sugar and petro-
ieg During 1898. those taxes returned
si7o 600 600 in revnue, and the
enoTnt increased annually until
901 when the total was S$O6,SOO,--
! 200 During the four years that
| these taxes were in operation the gov
eminent realized S1,046, 100000, or
about one-eighth of the amount
which must be raised by internal tax.
alton during the coming fiscal year II
| the budget expenses OF the next
twelve months Of the present war are
to be met. 49,,
Secretary chase attempted to lower
the rate of interest on one or the
Great Civil war loans. It was not I'M
I'll after the rate had been substan-
fialv increased that a sale for the
bonds was found. The result during
the Spanish-American war was To-
tally different. The $ZOO,oOV,VVV
So11 fssue authorized at the very be
! Ginning Of the war carried only three
ter cent. interest. The loan was pop
1IIarized nv issuing the bonds in de-
nomiTations as low as $50. and In
| .Hsil,fs priority in the allotment to
subscribers for the lowest amo ats
AS a result there was SS2.224 sub
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