The Union and journal. [volume] (Biddeford, Me.) 1858-1882, 1864-07-22
Economy Of Heavy Taxation.

Under this head the Waterman and Re-
fiector has very sensible article upon the
finances Of the country, which we copy. 1t
argues that the expenses OF the Government
should be met by its receipts; for then the
price OF articles of consumption would be OF
a money standard. The article is worthy OF
consideration:
IL is admitted, we presume, by all, that
high prices are due chiefly to the deprecia-
tiop Of the paper currency, and the specula-
tions inevitable to large increase OF paper
money without q specie basis. If by any
system Of public policy paper can be made
equivalent to gold, prices must immediately
fall, and tho same amount Of money will go
twice as far as ut present.
1t will hardly be questioned that 1t taxa
ton were sufficiently heavy to dciray the en-
tire expenses of the government, confidence
would DO established on firm basis Mt home
and abroad; and foreign loan could be
contracted ut advantageous rates, which
would reduce the price Of gold and exchange
10 n normal standard. In other words, il the
government could effect its purchases with
gold instead Of greenbacks, it could purchase
for less than half the present cost; and the
same truth applies to the people as to the
government. Such loan can be had ut any
moment by government whose income equals
its expenditures.
But il may be replied, such rate OF tax
ation is impossible. The people could not
endure il. and would rise in revolution. Our
answer is, that tho indirect taxation under
which the nation groans Is far heavier, and
the people would DO gamers, and would actu-
ally save largely by this increase OF taxation.
Look at the facts in the case. Laborcrs, and
Others whose income is less than six hundred
dollars, pay no direct tax to the government
But at present prices, they pay an indirect
tar of ut least 5000. Six hundred dollars
will not purchase what four hundred dollars
would buy three years ago. Suppose tax
Of fifty dollars was laid on them, and prices
fell 10 n normal standard would they not
be large gamers by the change? Is not the
same true of larger incomes? Take city
pastor whose income is $1,000 per year. In
the present state Of the market it is not
worth more than $1,000 in former years. He
paws on this an income tax OF $40 the pres
emit wear, and next year, by the now bill, so.
But his indirect tax, by the false system Of
finance which Congress supports, is $500. Is
il wise Tor legislators to shrink from burden.
Ing such constituents by thrce-iold tax, it
necessary to the revenue, when several hun
drcd dollars can be saved to them by eniorc-
ing it?
We have spoken only Of the income tax,
but tho samc principle applies to the revenue
derived from tho tariff on imports or on home
industry. There may be I'm apparent increase
of expenses by large duties, but II by such
an increase paper currency becomes rs val
uablc M gold, great reduction is effected in
the aggregate expenses. A clergyman with
10000 could well afford 10 pay 800 TO tho
government II he saved tho balance Of 5000,
now lost in inflated prices.
II seems 10 ms that the most economical
policv for the people is TO compel the govern
ment 10 nav all its expenses from its receipts.
Lot the Cabinet and Congress understand that
tho people believe they will be gamers by n
policy Of finance which makes the revenue
adequate to all expenditures. AT present
prices, the government Is paying out need
iessly ut the rate Of q million or million
and half psr day, whose interest we must
meet annually, and leave the principal as
burden to our children. At present prices
the people are paying uselessly i've or six
hundred millions u year, which profits no
body but spectators and contractors. Let n
change Of policy DO inaugurated, and prices
fall to o specie basis; then one-half Of this
amount might be paid to tho government,
Increasing its revenue beyond its cxpepdi
t,rca. and tho other half would be 80 much
clear gain to the pockets Of the people. BY
a reduction Of expenses, incidentto an equal.
i,y Of gold and paper currency. the expenses
81 ,hs Government would be diminished one
Sslf. and the people would save sum more
than equivalent. to the entire expenditures 9; q
tbe government. !. sounds ia alarming 20 TAX
Of revenue Of $500. 900, 900. But It must
NOT b. forgotten that the people are already
p,yinr this amount in the ina,tion OF prices,
from which neither government nor people
reap aDy advantage. II any policy will at