, 1863-01-23
Estimated Receipts to 30th June,
lS63---$76,777,799.
FOR THE FOLLOWING YEAR.
$150,000,000.
Proposed Amendments and Modif-
cations Of the Law.
REPORT OF THE COMMISSIONER OF
INTERNAL REVENUE,

TREASURY DEPARTMENT.,
OFFICE or INTERNAL REVENUE, jan. Is, 1868.
SIR: l have the honor to submit the follow
ing statement concerning the organization Of
this Office and the present condition of Its
the facts contemplated By the SD section Of
the Excise Law, nor will the facts therein re-
quircd deserve consideration until one year Of
experience, at least, from the first Of septem-
bcr, 1859.
Ientercd upon my duties Us Commissioner
oflntcrnal Revenue on the 18th day Of July
last; and although the organization of the
Office Is now ncarly accomplished, the retnrns
Of assessors and collectors arc not yet SO
enable me to furnish satisfies Of importance
on the basis Of an estimate Of the revenue to
be derived from specific subjects Of taxation.
The States not In actual rebellion have been
divided into collection districts, correspond
tiTcs to which they will be scyerally entitled
in the XKXV11Ith Congress.
An 8ssessor and collector haye been ap-
- pointed to each. The whole number of dis
-tricts Is 1S3, including two in Virginia, not
filled by appointment OF assessors and col
lectors.
COLLECTORS ASp ASSESSORS
The collectors and assessors hare been re-
quired to make returns Of the number Of
deputy collectors and assistant assessors, and ]
the residence of each. Collectors hare also |
been required to state The amount Of the
penal sum Of the bond given By each deputy. |
The whole number Of deputy collectors thus |
appointed is SIS The number Of assistant |
assessors is e,55S, making All aggregate Of /
assistant assessors, of 3,S14. There are also |
sixty male clerks, md three female clerks,
who hare been appointed in the Treasury De-
Iartment, and assigned for duty In this Office.
The whole number Of persons employed in
assessing and collecting the revencue is there
The number Of assessors and collectors up
pointed docs not correspond with the num-
ber of districts, as there arc several vacancies
have not the means at the present time Of
estimating with confidence tho amount Of
revenue which will be derived under the
excise Law Of July ], 1862. During the last
mouth I have caused careful Investigation
to be Instituted into the several sources of
revenue, and estimate to be nlnde Of the
amount which may be derived from each
source. According to this estimate, there
will bc rccciycdfrom NIL sources, except stamp
duties, during the current fiscal year ending
the 3oth Of June next, the sum Of SGl, "a, ,795.
during the same period will amount to the
sum Of SIS, ,000, ,010-maklng IN aggregate
revenue Of SO. ~, ,799. THIS result has been
reached by tie most careful Inquiry that
could be Instituted into the amount Of the
vsrious kinds Of ofmanufacturcs, the revenue to
" be derived from each, md by n like careful
inquiry into aal the otler sources Of income,
This estimate is less by about IS, ,000, 900 than
the general estimate which I had the honor to
submit to -you carly in the month Of Deccm-
ber last. hare only to say that in the more
careful Investigation which has recently been
made, the revenue from each source has been
estimated below rather than abuTe what may
reasonably be anticipated. It may be assumed.
19rther, that without material changes in the
business Of the country, the revenue from the
same sources for the fiscal year 1868 !, will
not be less than S150, 900 900.
Before proceeding. to estimate the expenses
Of assessing and collecting the revenue, de-
sire to express the opinion that m increase in
the pay q assessors Is very important, if not Of
absolutely necessary. In many Of the cities
and popu1ous districts the services Of compe-
tent persons have been secured and retained
only by the ASSURANCE that such recommen-
dation would be maize to Congress.
1t1s Of importance to the government that
the assessor should be q man OF intelligent
business capacity and unfltering integrity.
The compensation provided by law Is not ade-
9uatc for the services Of men who possess
these qualities. In many cases the expenses
OF procuring suitable Office for the tFansac-
ton Of public business, and the proper fur
nishs"g ~ 4he sa,sG 'i;s t; ca-.e1 the entire
to receive. 1t seems to me that an allowance
By tic day OF by the year, is preferable to
compensation by commission. If provision
were made to reasonable amount for office
TElL. al A1OHAACt u 60 UCT utly ktI l4E L1Hlt
employed, without regard to the nature Of the
service performed, might be IN adequate com.
pcnsation for nssessofs i'll much the larger
portion Of the country.
It should. however, I think, be necessary,
ifsuch should be the general rule, that the
lied to allow additional compensation to as
-. eessors in portions of the country where the
expenses Of living arc lasgc-which eompen
sation should not in anF casc amount to more
At,~~- 1nS
cxpedicnt to provide that the SALARY Of asses
sors in districts which yield rcvcnue, o.
GOO or less shall be fixed ut 81 500 PEI
annum; and that in districts where the an
nunl receipts exceed the sutn Of 500 600, th,
aeeessor shall be entitled to receive one fiji!
addition to Ills fixed salary; provided, TINT il
no case shall such commissions and salary CT
coed the sum Of $500 per annum. In thi
connection It may be proper to suggest alst
collector and to each assessor suitable sat
for the preservation of the books and money
belonging to the government
COST OF COLLECTING TIE REVENUE.
Assuming that some additional conlrensa
ton will be allowed to assessors, have mad
the following estimate Of the annual expense
Of collecting the revenue, viz: For expense
of assessing tic taxes tile sum Of $4,000 i
each collection district, or total Of 81, $50
600: for tue collection Of the taxes in cac
district the sum Of 5000, g, 4G4 600 In all
r for stationery, $7o, 600; for advertising by q:
SCISSORS and collectors, $50, 900; for salaries q
the commissioner and clerks in tho Office 6
internal revenue, $la0, 600; for blank book
and advertising, SO, 1000; for printing stamps
$s5,00; for Stamp Agency at Philadelphia
$500. Total, three millions SIX hundred an,
sixteen thousand five hundred dollars. Til
printing Ofthis make no estimate.
These estimates Of receipts and eIpend
turcs show that the cost Of assessing and col
lecting the taxes under the present syste1
strongest confidence in the States now at
knwolcdging the authority Of the constitutio
the expenses can never exceed three per cen
When the authority Of the government
Tecstablishedin the 1ebelllous States the c,
penses will be increased without proportion
ate Increase in receipts.
The rcturns received show that the e,
pcnscs Of collecting taxes in the Tcrritorit
are altogether rdisproportionatet to the incom
indeed, the income will barely meet the CO.
Of collection.
1t may be deemed wise economy to lin
the operation Of the tar Law to the State
This relief would encourage emigration, IN
ultimately increase the revenues Of the cou,
tE
When entered upon the duties of the o
fec, The subject which first engaged my attcl
ton was the preparation Of revenue stamp
By the provisions Of tho law, It was ncccssar
tint each stump should indicate upon Its fac
tue natnrc Of The paper or instrument t
which It was to be applied. This rcquisltio
involved tho preparation OF large numb,
Of eug1nyfDgs and dies, which should be, ,di
similar in design or In appearance. As Il
time was limited for so great m undertaken,
and In case IN attempt should be made to prI
cure stamps Of various designs, the risk
failure, In some instances ut least, would t
grcat, 1t was thought advisable that the lea,
Ing feature in each should be the same Upe
consultation, and with your approval, Il
head of Washington after 6tewarts main
Ing Was adopted. Proposals. a CO,
Of which is herewith Transmitted we
issued an the e6ta day Of July, 1862. On Il
9th day Of August, the bids were opened
the presence Of the bidders, and the contra
wns awarded to Messrs. Butler and Carpent
of Philadelphia, at the price of 13c per / ,0l
deliverable in Philadelphia, or IS 1-2c per ,0l
deliverable In Washingt ton-thcir bid bcil
much more advantageous to the Govcrnme
than eny other It il but simple Justice
say that the contractors have displayed gre
energy and good degree Of taste in the pre
eention Of tho work and the preparation Oft
fao the law been 50 framed originally that
. stamp of given denomination could In
oSea ;e1s asca tof its valuc upon any instrume1
{, mMnont ~, aes;asa to its Kind, the work Of p1
pa!1nK tae sta5nls 5 would have been much
hnsnsa, aau tAS public would have be,
supplied at IN carly DAY The ernn1oment
act Of The 25th Of Dccemser 1s.t plr,,;4s 3
use Of stamps without regae1 ~ ~ "a
ofthf instrument to which They ~ sus nasa =:
17933 In frEfr In ~.