New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1861-12-10

main - &c provided Tor by taxation 8nd loaDB'
Already ~ a former report tbe Secretary has had
TIE sOnor Of stating The principles by Which, az no
ecnceyes the proportions of taxation and loans
SHOULD be- determined. Reelection has Only confirmed
his opinion shat adequate prOyriOn by taxation Tor
ordinary expenditure, for prompt payment OF IN
teret oil the public debt, existing end authorized,
and for the GRADUAL oxtiuction Of the priGoipll u
Indispensable 70 . sound system Of finance. The idea
Of perpetual debt ia not Of American nativity and
should not be ndturalzed. Ii, ut any time the eX-
acting emergencies OF war coDstraln to temporary
departure from tie principle OF adequate taxation,
the first moments Of returning tranquility shonld be
devoted 10 its reGstablshment in full supremacy over
The financial administration Of allalfs.
Il is now ever more apparent than as tie date OF
me July report that dlies On imports cannot be re-
lied mon as a source Of revenue sufficient for the
proper objects Of taxation. Some modification may,
perhaps, be judciously made of the existing tarih,
aud some increase Of revenue may in this way be
probably obtained.
Bu, exiting circumstances are not proIi'ious 10
wise aud permanent adjustment OF imposts 10 the
various demands of revenue, commerce, and home
industry. The most sacred duty Of the American
peope at THE moment requires The conservation OF
All their enorQes and all their resources to the re-
establishment OF Union ON the permanent tounda-
lions OF Justice and freedom; and while other ma
lions look with Indifferent OF unfriendiy eyes upon
this work, sound policy would seem to suggest not
The extension OF foreign trade, bur more absolute
skill, aud American soil Freedom OF commerce Is,
indeed, a wise and noble pohcyl but to be wise or
noble il must be the policy of eoncordant ana ira
terual nations.
In accordance with these We've, the Secretary
begs leave to recommend that the duties on tea, coli
fee and sugar be increased 70 the rates heretofore
proposol; that il TO say, y cents per pound on
brown sugar; to cents ON cayed sugar ~ -Ocehts
per pound on green tea and 10 cents per ponnd on
coffee; and that no other alterations Of the tariff be
a, 10 mt gf CouOrnFe
further experience OF changed circumstances shall
demonstrate the necessity or expediency Of them.
Al considerations Of prudence and PATRIOTISM seem
10 cOucur in favor Of giving 70 TIE exist ng tarlh
f. and fair trial. and OF IeservlDg the WORK OF re-
vsion. modification, and permanent settlement for
more pTopirous days.
II has teen already remarked that the receipts Of
revenue from duties during the fret two quarters OF
the current year have not equaied expectation. IL
l. lighiv probable, however that the revenue OF the
two last will very considerably exceed that Of the
two tirst quarters OF the year. considerable I'M
pr0vement in the condition OF trade and industry ~
clearly peToeptible, and promises TO be permanent
An increase Of the revenue from customs may there
fore be reasonably anticipated.
IL If quite clear, however, that 10 anticipation OF
revenue from imports sufficient in amount for
the various demands Of ordinary and extra
ordinary expenditure can he wisely INDUCED, ~
long at least 20 the existing CONTEXT shall be pro-
lon.cd: nor is II probable should the debt created
in The suppression of the rebellion reach very large
propotlons that the customs revenue VIII suffice for
those demands during the first years after the
restoration Of peace.
IL becomes the duty Of Congress, therefore, TO
direct attention 10 revenue from other sources to
consider the character aud extent OF the provision
mace al tie las. session. and the eNpedency OF fnr-
Their provision OF a similar character
The provision made M the last session was OF two
descriptions; fret, q direct tax Of s-ooO0,o0O, OF
which sl4,Si6.0Is was apportoned 10 States and
and Territories acknowledging their obligations To
the Mon and as lj3 9s2 90 States the citizens Of
which repudste those obligations aud are IN open
rebellion, and, secondly, an internal duty Oh three
per ccntum OF all annual incomes, Win 'eithH eA'
ceptions and deductions.
As it il highly de,rabe 70 avoid, rs long g. rrae-
ucable introduction into the States Of Federal agen-
cies for the ment and collection OF taxes the
Secretary relying on assurances from Governors OF
the various Siatee tba; the amounts apporiioned 70
them respectively Will DO assumed, collected, ana
paid through existing State agencies, has hitherto
RETAINED from adyiiDg the appointment OF tie OIL
cers necessary for direct assessment ana collection
He has been the more readily persuaded to this
course because both the income and the direct tax
are required be assessed with reference TO Yalga
ops which can only be asceItaned for the purposes
a the income tax, after tie hrsi day OF January,
and for the purposes Of direct tax, after the bret d"y
of Apn' next.
The Secretary l. acquainted with no statistics
which afford the means on satisfactory estimate 81
the amount likely % he realized from tho income
tax. Considering, however, how large proportion
OF incomes, after the deductions sanctioned by law
will TALL wrbin the exemption limit OF 500 year
and considering also what numerous questions will
certainly perplex iis astessment and collection, he
respectfully fubmts 10 the consideration of Congress
whether the probable revenue affords a sufficient
reason for putting IN operation, Mt great cost the
machinery OF the act, with view should the States
assume the direct tax, 10 the collection OF tue IN
come tax alone.
The prudent forecast which induced Congress to
POSTPONE 10 another year the neceerty ~ steps Tor
the practical enforcement OF the law, affords, hap
ply, the opportunity Of revision and mobilization.
Ii alIords also the opportunity Of comparing the
amount of needed revenue with the probable income
from taxes of every kind aud Of - shaping egisa-
ton ~ to secure, beyond doubt the sums essential TO
tie fulfllment OF national obligations and the maln-
tenance Of the national credit.
In the judgment OF the Secretary, il will be neees-
gary TO increase the direct tax SO as 10 produce froIn
the loyal States alone revenue of at least go 900.
CO., and 10 lay such duties on ttills aud distilled
LIQUORS. on tobacco, bank notes, on carriages, on
,e1acies on paper evidences of debt and instruments
for conveyance Of property, and other like subjects
Of taxation as will produce an equal additional sum-
The existing provision FOR an income tax, just IN liz
principle, inasmuch az il requires largest oontrlou-
lions from largest means, mpy possibly aud some
what modified will, probably, produce slO,oOOOOO
more. The aggregate taxation Will thus amount TO
$J0,000,0OO
The Secretary IL aware that the sum lie large; but
seeing, a. he does, no probability that the revenue
from ordinary sources will exceed so 0O0, 900 during
the current year, and knowing, as he does, that TO
meet even economical disbursements, and pay the
interest on the public debt, and provide sinking
fund for the gradual reduction Of its principal the
appropriation Of 500 900 will be necessary, he
feels that he must not shrink from plain statement
of the actual necessities OF the situation.
But if the sum is large the means of the people are
also arge and the object to be attained by conse-
Grafton Of portion Of them to the public service is
priceless. The real property of the loyal States is