4 3 6 THE POPULAR SCIENCE MONTHLY. 



We may credit Uncle Sam with the expenditures that are re- 

 quired to meet the obligations of the war, and also for the con- 

 duct of the Government, equitably administered with the least 

 interference with the freely chosen pursuits of the people : 



This account is adjusted to the prospective revenue, predicated 

 on receipts to date in the year 1890. 



I will therefore make Uncle Sam debtor to the amount of the war taxes 



which are collected under the internal revenue system on whisky $78,000,000 



To the amount of the war taxes which are collected under the internal reve- 

 nue system on fermented liquors 27,000,000 



To the amount of the war taxes which are collected under the internal reve- 

 nue system on tobacco 33,000,000 



To the amount of the war taxes which are collected under the tariff on sugar 



and molasses 60,000,0 00 



$198,000,000 



Add for elasticity in 1890 and 1891 2,000,000 



$200,000,000 



REVENUE FROM WAR TAXES. 



We will credit Uncle Sam with the annual obligation for the payment of pen- 

 sions already granted, now rated at $65,000,000, adding for arrears 



$35,000,000 $100,000,000 



We may now hope that the current annual pensions, aside from ar- 

 rears, may not get beyond the sum named above, $65,000,000. It will 

 be observed that the payment of arrears is the liquidation of a debt 

 now in process of being audited, and that on payment the liquidation of 

 arrears of pensions is final. 



We will credit Uncle Sam the amount of interest which must be paid on the 



war debt 31,500,000 



$131,500,000 

 We will credit Uncle Sam with the amount which should be applied to the 



sinking fund for the extinction of the war debt 48,500,000 



$180,000,000 



When we balance these war taxes against the war expenses, we 

 find a surplus which may be carried forward to meet the ordinary 

 expenses of the Government, $20,000,000, and this surplus will be 

 subject to rapid increase with the growth- of population and the 

 presently diminishing burden of debt and pensions.* 



* Between the date of the preparation of this treatise in May, 1890, when it was written 

 for submission to a private club, and the correction of the proof for publication, a Pension 

 Act has been passed which may for a time take up this excess of war taxes above the pre- 

 vious war expenses, and even a little more. It is believed, however, from the best infor- 

 mation that can be obtained, that even under this act the current annual pensions will not 

 exceed $100,000,000 a year. 



On the other hand, the elasticity of the revenue which is due to the growth of the popu- 

 lation and progress of the country, will be likely to render the avails of the taxes on liquor, 

 tobacco, and sugar quite sufficient to meet even the extravagant pension-list under this and 

 previous acts, and the diminishing amount of interest on the public debt, even without 

 stopping the contribution to the sinking-fund, or providing for it in any other way. In 

 English practice, which we might well adopt, such an extravagant Pension Act as that 

 which has now been added to our previous ample provision would have been accompanied 

 by a proposed tax intended to meet it specifically, like an income-tax or a renewal of the 

 duty on tea and coffee. Such is not our habit of legislation, although it well might be. 



