Great Britain imposes for the purpose of maintain- 

 ing lighthouses and other aids to commerce, it is 

 believed that this is a just tax which the Govern- 

 ment is fairly entitled to under any conditions, and 

 there is great propriety in restoring it to two thirds 

 of the figure which existed in the civil war. 



" We have repealed that provision of the act of 

 1886 which tendered to foreign powers reciprocity 

 in tonnage dues, for the reason that in experience it 

 has been found that it worked entirely to the benefit 

 of other countries, and not in any manner to the 

 benefit of this country. 



" It has been necessary to repeal the provision in 

 the shipping act of 1880, dedicating the tonnage tax 

 to the support of the Marine Hospital Service. It 

 will be remembered that the act of 1886 reduced 

 the tonnage tax, and that a provision was inserted 

 making a permanent appropriation of the receipts 

 from the tonnage taxes for the support of the 

 Marine Hospital Service, so that since that time 

 the Marine Hospital Service has had the benefit of 

 the amount received from this tonnage tax, which 

 last year was in excess of $800,000. We believe 

 that method of making appropriations is vicious. 



" Every appropriation should be distinctly made 

 ay Congress, and those who have expended it should 

 report what has been done with the money. But 

 the main reason for inserting this provision is that 

 if we did not do so all of the two and a half millions 

 would be permanently appropriated to the Marine 

 Hospital Service. After consultation with the 

 chairman of the Committee on Appropriations, he 

 has concurred in this provision making a special 

 appropriation for the next fiscal year and leaving 

 subsequent appropriations for the Marine Hospital 

 Service to be made annually. 



" Now, all these increased taxes proposed by the 

 bill will give an additional revenue of from ninety 

 to one hundred million dollars, not less than ninety 

 millions in any probable event, and not more than 

 :>ne hundred millions in any probable event. It 

 is impossible to come nearer than that in any esti- 

 mate, as what the revenue may be will depend large- 

 ly on the condition of business. 



" But it is the opinion of many of those gentlemen 

 who administer the revenue laws that not less than 

 ninety millions, and some think one hundred mil- 

 lions, will be obtained from these provisions which I 

 "have described. All of them, it will be observed, 

 ire taxes on articles of voluntary consumption, or 

 ;axes on business paid by those who ordinarily can 

 ifford to pay them, disturbing business to the mini- 

 mum extent, giving a measure of revenue immedi- 

 ately in the case of fermented liquors, tobacco, and 

 3igars, or to be obtained as soon as the provisions 

 go into effect as to other provisions. 



" The stamp provision will take effect the 1st of 

 Fune, the special taxes upon dealers in tobacco will 

 go into effect the 1st of July, and the increase on 

 fermented liquors and tobacco on the day following 

 the passage of this bill. 



" Having thus reviewed the subjects of taxation 

 resorted to for the purpose of increasing the reve- 

 nue, I am now brought to the question of borrow- 

 ing. The additional revenue from the sources I 

 have specified has been provided as a basis for the 

 purpose of meeting current expenditures in part, for 

 the payment of interest on what the Government 

 may borrow, and also for maintaining the public 

 credit. 



"But it is evident that the war upon which we 

 have entered unless all signs should fail, as I hope 

 they may is not to be simply a sixty days' affair, 

 is not to be simply a three months' affair, is not to 

 be even a six months' affair ; and the more earnest 

 we are in our preparations, the more unitedly we 

 stand, the more means we provide for defense and 



CONGRESS. (THE WAR REVENUE LAW.) 



167 



offense, the more we arm the Government with the 

 means of carrying on this war, the shorter it will be. 



" It is evident that no measure of taxation that 

 can be proposed can meet the expenditures of the 

 war we have already entered upon. Some other 

 provision must be made. What does every govern- 

 ment have to do after it has exhausted the appro- 

 priate means of taxation such as under its constitu- 

 tion are within its reach f It goes out and borrows. 

 Unless we propose to conduct this war feebly 

 unless we propose to leave our army in the field 

 unfed, unclothed, unpaid we have got to borrow. 



"No nation on the face of the earth ever escaped 

 that necessity in war. Fortunate it is for this coun- 

 try that it has maintained its good faith in the past 

 so fully that to-day it has almost the highest credit 

 of any government on the face of the earth. Now, 

 we must go out and borrow for the time being. 

 There are contained in this bill two provisions with 

 respect to borrowing for the purpose of carrying 

 on this war effectively for the purpose of sustain- 

 ing our navy on the seas and our armies in the field 

 and securing as speedy a conclusion of hostilities as 

 possible. 



" In the first place, in section 27 we authorize the 

 Secretary of the Treasury to issue and sell not ex- 

 ceeding $500,000,000 of 10-20 3-per-cent. coin bonds, 

 to be disposed of as a popular loan in the first place 

 and from time to time as the public necessities may 

 require. These bonds are to be issued in denomi- 

 nations of $25 and multiples thereof, $50 being the 

 lowest bond that has ever before been issued. 



" And, although it is not specifically provided for 

 in this bill, I may say that it is the intention of the 

 Secretary of the Treasury, commencing with $200,- 

 000,000 of this loan, when authorized, to place it at 

 the post offices throughout the country, wherever 

 that can be done, and to offer these bonds first 

 of all to the masses of the American people, who, 

 I believe, will, not only for the purpose of invest- 

 ment but from patriotic motives, embrace the op- 

 portunity of subscribing for them. 



" And, on the supposition that the amount of 

 subscriptions made will exceed the amount of the 

 loan required by the Government, the circular to be 

 issued by the Secretary of the Treasury will provide 

 that every subscriber for the loan to the extent of a 

 thousand dollars or less shall have the whole amount 

 that he subscribes for, and those who subscribe for 

 larger sums only proportional amounts, the object 

 being to reach the masses of the people who may 

 desire to make this investment. 



" Now, I wish to say a single word with regard, 

 first, to the rate of interest 3 per cent. Some 

 doubt has been expressed as to whether a 3-per- 

 cent, bond can now be floated at par. The com- 

 mittee has obtained information, so far as possible, 

 throughout the country in reference to the proba- 

 bility of disposing of such bonds. 



" And, Mr. Chairman, the belief of the committee 

 and others who have the most information respect- 

 ing the matter is that there will be no question 

 whatever about being able to dispose of them. 



" But in order to make this absolutely sure for 

 it would be a serious misfortune not to have the 

 loan taken in order to make it sure, these bonds 

 are made redeemable after ten years, at the option 

 of the Government, and become payable in twenty 

 years. The reason for making the bonds in this 

 form is that it is believed that a five-year period, in 

 the first place, might affect the placing of the 

 bonds, especially the later issues; and it is impor- 

 tant, therefore, in this view of the case, that they 

 should run at least ten years, in order to make it 

 certain that the bonds will be taken. 



" But the second reason influencing the com- 

 mittee was this: We found, on examination, that 



