Below is a list of the principal items in the revenues and appropriations for the year ending June 30, 1910.
| REVENUES | |
| Duties | $330,000,000 |
| 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 becomes due, and can be cashed at any bank.
Bonds are bought and sold on the market, and their prices are quoted in the daily papers. When the bonds fall due, they are redeemed by the government at their face value, or "at par." On the market all United States bonds are now selling "at a premium." Issues of bonds were made in 1898, the rate of interest being 3 per cent, and in 1900, the rate being 2 per cent. The Public Debt Statement issued monthly by the Treasury Department gives the divisions of the bonded debt and the amount outstanding. On December 1, 1910, the amount of the interest-bearing debt was $913,000,000.
II. THE POWER OF CONGRESS OVER COMMERCE.
The Control of Commerce.—The power over commerce, which we are next to discuss, was given to Congress because the history of the country under the Articles of Confederation showed clearly that State control of commerce resulted in confusion and constant disputes. It is necessary that merchants and ship-owners should conduct their business under laws that are as uniform as possible. It is also necessary that they should be certain as to the terms of the law. These conditions could not exist if each State were to make laws controlling the commerce going to other States and to foreign countries.
The Constitution gives Congress the power, in Article I, Section 8, Clause 3, To regulate commerce with foreign nations, and among the several States, and with the Indian tribes. Not all commerce that is carried on by the citizens of this country is subject to control by Congress.
There is a vast amount of commerce that is carried on entirely within the limits of the different States. Over this commerce Congress has no power; it is regulated by State laws relating to trade and transportation.
Interstate Commerce.—The distinction between State and interstate commerce is not readily seen in many cases; but in general it may be said that if a commodity starts in one State destined for another, its control throughout its course lies within the power of Congress. This principle applies to both land and water transportation. So the coast trade among the States lies within the jurisdiction of Congress; also, commerce upon those rivers that form highways between different States. The harbors and waterways of the United States have been improved by the expenditure of many millions of dollars. This money has been appropriated in the "River and Harbor Bills" that are passed by almost every Congress.