Arkansas true Democrat., 1858-06-08
From the Memphis Appeal. DIRECT TAXATION

From the Memphis Appeal.
 DIRECT TAXATION.
 Abstract cf the Report cf Hon. Mr Royce Of
 .50ufh Ca'olIna, cf Ae Special Committee of
 the House cf Representatives, on he Goyern-
 mlem Expenditures, Naojqation Lavs, Duties
 CD Imports, and Dtrect 7aaation.
 The special committee to whom was refer red the following subjects: A reduction of the expenditures ot the government; the navigation laws; the existing duties on imports, and the eXped1encv of a gradual repeal of all duties on imports, and resort exclusively to internal taxatlon-respectfully submit the following re- poit
 The expenditures for the fiscal year end ng June 30, 1857 independent of the public debt. as appears from the report of the secretary of the treasury, are S65,O32, ,597 76.
 The first question is whether these expendi lures are greater than what they should be under an economical administration of the oov errment We think they are The best mode of determining this question is to compare the present total expenditures of the government at some past period of our history; and further, to compare some of the leading items of our exnenditure now with the leading items of our expenditure then.
 * *
 If space would remit, this contrast mipbt be carrie into many other items of expenditure and the resnlts would be startling. But enough has been done to show that tho rate of expen- diture is far in excess of the increase of popula ton. The expenditures ought not, for very obvious reasons, to increase in proportion to the increase of population. Bnt conredjnr that it should, the expenditures of the government in round members should not exceed S2S 100000: whereas t is S65,O ,O32, 559 76-aa excess of S37O32. .559 76
 This result is sufficiently striking; but it is rendered much more so when We consider two important items:
 l. That 6 196,OOO acres of the public lands were granted during the last fiscal year for railroad purposes, which may be valued at S15 490,O0O, being at the rate of S2 50 per acre.
 ?. That appropriations to supply the def ccnres of the last fiscal year have been called for. amounting, in round numbers, to S10,OO0,- 0OO making the total expenditures of the gov ernmert in round numbers, for the last fiscal year S90OOOO OO0O--an excess over the rates of expenditures in 1923 of $62,0OO,OOO.
 The administration of the government in 1929 was not considered peculiarly economical; on the contrary, it was pronounced at the time by some as extrayagant, and really was much more so than the first term of Mr. Jefferson's administration.
 Considering IS established the proposition that the expenditures of the government are far in excess of what they should be. we pass on to consider tho remedy, if remedy there be for this laviShmcnt of the public money. What is the remedy for this vast and increasing ex- penditure? The only remedy likely in any degree to be etfacual is to change the exisi1g system of taxation. The regular increase of our expenditures shows that it is not attributa h'e to any particular party or administration: for this increase has constantly gone on nrder every party and every adminiStration with the rnrularitv of a great principle To make an indivilual a prodiga vou have only to sunpIv him with an unlimited amount of money. to make government eXrravaoant you have only to do the same thing. The first economical de- feet of our present svstcm of taxation bv dutias on imports Is that it opera es as a bounty to ono and that a very important class-the manufac- tnrers. Under the operations of this first defect the great manufacturing class. which represents vast capital which is instantly alive to it's peculiar interest, W hich is vigilant. active now erfnl and capable of prompt and ready combina- ton, Is interested in increasing the taxation of the government; for the higher the taxes are, if lad on inc principle of protecting their products, the better for them.
 Suppose the question were submitted to the cotton manufacturers or the iron manufacturers whether the duties on cotton and iron products should be increased or diminished. does any one doubt what their answer would be? So far as they are concerned, they consider high duties as bounties to them, and they would be in favor of them if the revenue thereby derived were thrown into the sea. Under the present system of taxation by duties on imports, this great class are favorable to high taxation.
 To form some idea of the stupendous maeni- tude of this manufacturing interest, take the following statement, showing the value of the product Of manufacture of the United States.
 Statement in detail omitted.)
 Result, total products of manufacturers in the United States, estimate at S1 055 595, ,999d
 This reference to the products of mannfac- turoS may give us some idea of the immense capital engaged in manufactures This capital may be estimated at five hundred millions of dollars
 This vast capital is all more or less interest ed m high duties-that is, in high taxation The influence of the manufacturing class or; taxation is not merely in proportion to the capi.
 
 tai engaged in otherindustrial pursuits; for from very obvious reasons, some of which have been already incidentally alluded to. it is far beyond thiS ratio. As an illustration of this influence we would refer to the facts connected with the modification of the tariff during the last Con- gress It is notorious that the only great n- terest represented here at that time by outside agents was the manufacturing interest One of ror1 I ton of the government is to place that great and active interest permanently on the side of low taxation, and the only effectual mode of doing this is direct taxation, which necessarily implies the total abandonment of protective duties, which are but another name for bounties. When you have put all the great interests of capital on the side of low taxes, you have taken one of the most decided steps that you can possibly take in favor of low taxation, which is the necessary antecedent of economy.
 The next prominent evil of the present svs- tenn of taxation is that by its indirect operation the people are ignorant of what they pav.-- They are ignorant of what they pay to the go- vernment, and equally ignorant of what they pay to the protective interests in the shape of bounties. If the object be to obtain from the people the largest amount possible without arousing them, then the indirect svstem-the present system is the best. But if the object be only to obtain from them the least amount that will suffice for the just wants of the gov. ernment, then the direct system of taxation is the best. The happy ignorance of the people of the United States as to the amount of taxes they are paying is one great cause of their re- malning so passive under the enormous increase of our expenditures, which has been going on for years If we desire an economical govern ment we must be candid with the people, and let each one know exactly what he pays. The people ignorant of how much tax they are pay