taxes mentioned in the
outline above. In levying a direct tax, Congress must determine the
total amount to be raised (as $2,000,000 in 1798, and $20,000,000 in
1861), and then apportion this amount among the States, according to
their population.
The bills introduced into Congress which provide for taxation are
called "bills for raising revenue." They must originate in the House of
Representatives (Article I, Section 7, Clause 1). The Committee on Ways
and Means frames these bills. In the Senate such bills are referred to
the Committee on Finance, and here the bills may be amended.
The Appropriation of Money.--Appropriation bills are those which
provide for the expenditure of the government's funds, and these bills
are in charge of the committee on appropriations in each house.
Below is a list of the principal items in the revenues and
appropriations for the year ending June 30, 1910.
REVENUES.
Duties $333,000,000
Internal revenue 290,000,000
Miscellaneous 52,000,000
-----------
Total $675,000,000
EXPENDITURES.
War Department $156,000,000
Navy Department 123,000,000
Indian Bureau 18,000,000
Pensions 160,000,000
Interest on public debt 21,000,000
Civil list and miscellaneous 180,000,000
-----------
Total $659,000,000
The Power to Borrow Money.--We have now seen how money is provided
for the government under ordinary circumstances. In extraordinary cases
this revenue is not sufficient; accordingly, Congress has been given
power by Article 1, Section 8, Clause 2, _To borrow money on the credit
of the United States_.
Money is borrowed in most cases by the sale of bonds. These are of the
same nature as the promissory notes by which individuals obtain loans.
National bonds state the promise of the United States to pay a certain
amount, at a stated time, with interest. A "registered" bond contains
the name of the owner, and this is a matter of record at the Treasury
Department. When this bond is sold, the record must be changed. "Coupon"
bonds are usually payable to bearer; they have attached to them a number
of coupons equal to the number of interest payments due during the term
of the bond. Each of these is cut off as the payment
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