, 1862-05-01

cca Of revenue Of the Wars and Means Bill,
he says: =
Under the above schedule, should 1t become
Law Of the land, the manufacturing industry
Of the United States viii be subject to m an
aual tax Of about SO ,00Q, GOO; while the mer-
chant and the agriculturist, except In modes
which are common to the three classes, will
be taxed slightly or not at all In the view Of
your COMMITTEES, It would be difficult indeed
to prove the equality or the justice Of such an
arrangement
We have already stated that the annual pro-
duct Of our manufactures, mechanic arts,
mines and fisheries, SO far IS the same become
merchandise, and figure In trade, amounts to
Il ,287 ,0oo, 900. This sum, however, includes
several important commodities on which no
tax is levied or proposed-6uch as flour, fiah
and other afticles-amounting in all to more
than $500, ,Oo0, CO., Deduct this amount from
the Sl,27 10000, md we have less than
s., ,0O0, ,oO, 400 as the value ofthe production on
which it is proposed to raise the manuflctue-
ers' tax Of SIC, 0,W0, ,000. No one, ut all familiar
with the great laws and conditions Of produc-
ton, can doubt that tax 80 largely concen-
must directly tend to check the production Of
that business. Under the credit system which
prevails IN tho United states, six months
would, on the average, elapsc before the man
ufactu1er could get back, in payment for bis
goods, the money which he had advanced to
1t an adsance for such 1t would vlr ually be.
As it would be not far from half Of the whole
sum which It is proposed to raise fran1 the
manufacturers, We may set it down 1T S35, ,Q00,
Geo. In other words, it would be, to this ex-
tent, Il direct withdrawment Of capital from
the manufacturers Of the United States. Those
who know (and all should know) tile fact, that
there is no one cause by which this important
interest is SO much crippled il its competition
with foreign producers Us by the Ecarcene5s Of
{%n1 H$<~fx hS4%
must be paid for lis use, cannot fail to see the
riousftendencies Of the measure proposed.
ltwould lnevitably operate as check to pro-
duction.
The experience Of other countries in which
the working of excise laws is no novelty, has
shown that regulations of this character, in
consequence OF restrictions which they i'm
pose, the labor and expense Of returns which
they require, aud the constant annoyance
which they involve, have the effect 70 check
production. EEpcclally must this be the case,
if, as proposed in the House bill, some inter
ests are left comparatively free, while others
are heavily burdened- Capital, under such cir
cumstances, invariably seeks those lines Of
employment which are least restricted. Eng
land, in shaping her fiscal policy, seeks to en-
courage. production in every possible way.
With this view, she long ago removed all e7-
else restrictions from her principal manufac-
lures. Paper, malt liquor and spirits, are the
only articles eli importance on which she now
imposes excise duties.
To = considerable degree, our industry is
conducted on the advantageous principle Of
divided labor. In such cases, the raw
| material passes through several separate es-
| tablishn ents before 1t reaches its final aud
marketable shape. The tax Of three per cent
| paid On each Of these processes would soon
become prohibitory. The Committee OF
make exceptions in regard to articles which
| have been once taxed. II the returns were
required only when the manufacturer makes
| up his semi-annul OF annual accounts, this
| provision might be more available; but in
| monthly exhibits Of manufacturing results,
obtained by complicated process and its use
Of material in various forms, it would otter
| be Impossible to make the requisite discrinl
| iDation.
| II, from all or any Of the influences now
specified, there should result check upoI
| our manufacturers of only ten per cent (anl
I diminish our manufacturing produce to ths
annual extent OF q hundred million dollars
thus entalling heavy loss upon the country
while it would materially aggraVate the burdet
Of taxation.
In the difficult task of framing taz
as in tie fiscal policy Of England, lead
ing purpose to settle. and arrange its vari
GUS details in way least likely to obstruc
and diminish production. Let this great feede
Of commerce, this prime source Of nationa
wealth and power, this ultimate mems of pay
ing all imposts, continue to flourish, and taxa
tion, however large, will be cheerfu]ly borne
but, just in proportion as the measures no1
to be adopted shall have the effect to weake
or destroy this elementary power, they vii
dry up the streams Of our prosperity at thci
fonntain-hcad.
In the adjustment Of details, simplicit
should be prominent aim Multiplicity an
variety in the forms Of taxation have direc
tendency to make the levy and collection NOR
expensive to the Government and more dit
tasteful to the people.
But, as the annual wants Of the Treasur
are likely to far exceed the House estimate,
RI sort to every productive soArce Of incom
nl1y become necessary.
As a just, comprehensive and fruitful sour1
OF internal revenue, your committee recon
mend that there should be a stamp-duty in
posed On all sales OF articles, goods, ware
merchandise and produce, whether foreign {
domestic, except ea1es made by persons who:
business does not exceed in the aggregat
- dollars year.
such duty would reach every kind Of bus
ntss, and under it all classes aud parties wou]
t fare alike. "The wcl1-to-do farmer, the pro
peroue merchant, the thriving manufacture
md the lahoriouB artisan, would each and d
contribute TO the support Of Goyernmen
and to the maintenance OF public credit,
! just proportion to the amount of their bus
!
! Interests would remain undlsturbed, and q
: | those 1epinipss and iealouses and htartbnr
c ibgs, Which follow in the wake Of partial le
islatlon, would be etf::ctuAlIy forec1osed-
+ The tag being thus justly distributed, al
= consequently the rate moderate, much Of Il
Q temptation to evasion held ont by the uuequ
aud excessive rates Of the present bill Won
: be avoided.
+ 1t is believed that internal revenue Can I
y raised By this mode, more justly, With le
t lr%r $rv sl1o
q existing modes Of taxation in the sever
T, States, and With less cost to collect, than
q any other way. A tax on sales, however,
IS not deemed incompatible with addition
specific duties on ale, beer, spirits and
II bacco, or with other forms Of excise.
u From onr wnnt of experience in the Whc
y matter Of inte1nA taxation, it is not easy
u estimate the amount Of revenue likely to
IL derived from any mode to which we may
IT sort. ALI estimates upon the revenue csI
e city Of any tax bill viii be more OF less co
d jectural and uuceTta atm until we have data {
e, rived from actual tIia. In the present ST
le Of our knowledge, 1t is not possible to det
OF mine The exact rate Of duty required On sal
to produce the needed income.
~ AZ before stated. the aggregate Talue OF
III domestic produce of the country, which
:. ters into trade, is $, 600 900 GOO. t to Il
70 We add the imports-:ssy $3.50. .0oo, CO.,
lc have &. .950, ,0O0, ,0tD as the total amount Of
chaugcablo commodities. Assuming Il
AZ these are sold, to average three aud a b
Ill tin4es before they reach the e::Dsnmer, I
T. total annual amonnt OF eales would be 81
n :325 ,0c0.00o. The rate Of duty to be impo:
= on sales would Of course vary according
at the amount required to be raised from t
Or source. II, however, the rate first fixed up
u should, On trial, p,ocuce too much or too
. Tic revenue, the amount can be raised OF Ii
lt, cred at pleasure, without disturbing
Is machinery Of collection. The change mir
ne he scctmtIishe without the trouble aud
ar lay Of additional legislation, as the 1ct mis-
E.ttt future t2iscucits uf the Treasury
be providing for changc in the rate, II, be hi
n l;ntswn by proclamation nf the President.
u stoulo duty on SAILS be adopted. rs a te
at ilE source IT revenue, the fornis Of taxlt
SIS il tie present bull most likely to emb.rFi
n Iro0uctiun, aud to prove custly and trout
es'u.e in their collection, might be dispen
pl with, ard the Wl0le system OF internal IL
IN ten Gratly si1uplird. # the first obje
-. NlHch i revenue, can be made certain,
~ ! should rjnics. to be relieved from appreh
~ / slope which have bern so generally xukej
;" ~ the more obnoxious provisions Of the Z
m TosCd act.
be The committee also recommend. that NIL
I'D tcrnal dues shall be collected by the sale
ed Government stamps, to be distributed aud
he u.'ned through the Post Office Department
Two modes Of applying the stamps b
y, hesn considered-oue whereby stamp sho
mt hc affixed 10 each bill Of sale, SUCH atf1x be
nS necessary to perfect the title Of the buyc
az his purchase; and the other, in which