Virginia Argus. [volume] (Richmond, Va.) 1796-1816, 1812-01-30

VICE OF the years 1872 and 1915 leaving the
selection Of the additional taxes which may
thereafter be necessary to provide for the inter-
est OF subsequent loans to be made according
80 the experience which will be afforded by
those two Years
Before proceed 10 answer the inquiry ofthe
committee respecting a selection of the inter
nal taxes now necessary, permit me to observe |
that II was stated in the annual report of De- |
Ccnbcr 70, 1903, that 3" no internal taxes either
dircc! or indirect were contemplated, even in !
ths case OF hostiitics carried against the two
frea, beliigeftn MT powers" An assertion which
renders it necessary to shcw that the prospect
then held cut was act deceptive, and why il
has not been retlizcd.
The balance III the treasury amounted at that
time tU near fourteen millions of dollars. Bl.
aware that that surplus would in short time
be expended, and having stated that the revcn-
ne was daily decreasing, il was in the same re-
port proposed " that all the existing duties
should be doubled on importatons subsequent
to the FIRST day OF January, 1902 As the net
reyeiiuc actruedfrom customs during the three
Years, 1909, 1910 and 1871, has without any In
crease Of duties exceeded twenty-six millions
of dollars, ii follows, that il the measure then
submitted had been adopted, we should, after
making a large deduction for any supposed
diininution of consumption arising from the
proposed increase, have had at this time about
twenty millions of dollars on hand, a sum grea-
ter than the net amount of the proposed inter
nal taxes for four years.
In proportion as the ability TO borrow is di-
ninished, the necessity OF resortng TO taxati-
on is increased. 1t is therefore also proper to
observe, that ut that time the subject Of the re-
newal of the charter Of the Bank of the United
States had been referred by the Senate to the
Secretary of the Treasury, nor had any symp-
tom appeared from which its absolute dissolu-
ton without any substitute, could have then
been anticipated The renewal in some shape,
and on a more extensive scale, was confidently
relied on and, accordingly, in the report made
during the same session to the Senate, the pro-
priety of increasing the capital of the Bank to
thirty millions of dollars was submitted, with
the condition that that institution should if re-
CURED, be obliged TO lend one half of its CAPT
tai to the United States. The amount thus
loaned might, without any Inconvenience have
been increased to twenty millions. And with
twenty millions Of dollars in hand, and loans be-
ing secured for twenty millions more, without
any increase of the stock of the public debt at
market, internal taxation would have been I'M
necessary for Of least four years of war, nor any
other resource been wanted than an additional
annual loan of five millions a sum sniff GENTLY
moderate to be obtained from individuals, and
on favorable terms.
These observations are made only in refer
eEce to the finances and resources Of the gener-
al government. Considerations Of a different
nature have, on both these subjects, produced
different result, which makes resort to inter-
nal taxes now necessary, and will render loans
more difficult to obtain, and their terms less ia
vorable. But the resources of the country re-
main the same; and if promptly and earnestly
brought into action, will be found amply suffi-
ctcnt TO meet the present emergency. With re-
spect to internal taxes, the whole amount to be
pased is so moderate, when compared either
with the population and wealth of the u States,
Nvrf . l l,l
by their governments, that no doubt exists of
the ability or will of the people to pay, with
out any real Inconvenience, and with cheerful
ness, the proposed WAR TAXES. For it is,
still hoped, that the ordinary peace revenue of
the United Stateswill be sufficient to reimburse
within reasonable period, the loans obtained
during the war, and that neither 4 perpetual &
increasing public debt, nor permanent system
OF ever progressing taxation shall be cntailed
on the natien Those evils cannot, however be
otherwise avoided than by the speedy organza-
ton of n certain revenue. Delays in that re-
spcct, and reliance on indefinite. loans TO de-
fray the war expenditure, the ordinary exper-
ses of government, and the interest on the loans
themselves, would be equally unsafe and ruin
Gus; would in short time injure public Gre,
dit, impair the national resources, and Witt
mately render much heavier and perpetual tax
es absolutely necessary.
OF the gross amount of five millions Of dollars,
to be row provided according TO the prece-
ding estimates, by internal taxation, it is re-
specially proposed, that three millions should
be raised by ditecttax, and two millions by
indirect taxes.
The sum of three millions will not, consider
ing the increase of population, be much grea-
ter direct tax, than that of two millions voted
IN the-year 1898. To this, permit me to add
another view of the subject.
The direct taxes laid by the several states,
during the last years of the revolutionary war.
were generally more heavy than could be paid
with convenience. But during the years 1855
10 1889 an annual direct tax of more than 20O.-
GOO dollars ss52O5, t89 was raised ip Pennsyl-
wanna, which was not oppressive, and was paid
with great punctuality. The increase of popu.
latlon ofthat state, between tie years 1887 and
1872, is in the ratio of about 4 to g. a tax of
10000 dollars payable in the year 1913, is not
higher in proportion to population alone, and
without regard even to the still greater increase
OF wealth aud Of circulating medium, than
tax OF 2OoOOO dollars was in the year 1857.
But the quota of Pennsylvania, on tax ofthree
millions OF dollars, will Counting Orleans as a
state hardly exceed 365,0o0 dollars The
proposed tax will therefore, so far as relates to
pennsylvania, be near % per cent. lighter, in
proportion to the respective population than
that paid during the years 1885 to 1889.
The rule Of apportionment, prescribed by the
constitution, operates with pcrhaps9s much e.
quality as is practicable, in relation to states
not materially differing in wealth and SITUATE
on. L may therefore be inferred, that direct
tax which is not greater than Pennsylvania can
pay with facility, will not press heavily upon a
ny Of the other Atlantic states II is only in
reference TO the western states, that the consti-
tutional rule Of apporionment, accordingte the
respective number Of inhabitants in eaci state,
may be supposed 10 be unequal. Being at n
greater distance from market, and having, on