The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1865-09-25
Collection OF Taxes I'm the Southern States
TREASURY DEPARTMENT.,
September 18 1895

TREASURY DEPARTMENT.,
September 18, 1865. I
In the circular issued by this Department on
June IL 1865, reference was made to the provision
contained in Section 46 Of the Internal Revenue
Act of june 30 1864 comforting upon the Secretary
OF the Treasury discretionary power in regard to
the assessment, levy, time and manner of collection
Of taxes in the States lately in nsurrection
- onder the authority given by that section it was
in any degree the rights of the Government in re-
gard to taxes hereuntO accruing, would not insist
at present upon their payment, far as they were
payable prior to the establishment of collection
payer resided. n was further provided that man
ufactured articles found in the hands of a pur-
chaser, which were satisfactorily shown to havo
passed from the manufacturer before the estab-
lishment OF the district should not be subject to
tax, unless transported beyond the limits of the
State lately in insurrection. No exception was
then made in favor OF articles which had remained
in the possession OF the manufacturers and thus
become liable to the tax imposed by the existing
law.
The Department, preferrng to test the practical
workings Of the regulation before exercising its
power OF modification in this important particular
representations since made relative to the hard.
ships of this discrimination between manufacturer
and purchaser have been corroborated by careful
inquiry, and induce the conviction that further
exemption s justiiable and advisable.
1t is found that considerable quantities of man.
ufactured products have been retained by the
manufacturer in his own hands as the safest mode
OF investing his property until the return of peace
that this retention was determined ON and carried
out without the knowledge opportunity Of knowl-
edge of the law subjecting this property to heavy
taxation ON sale, and that large part of the man.
ufactures so retained, having been much deterio-
| rated in value by the lapse of time and want Of
proper attention, would not now sell for sum
equal to the tax.
A state of things so destructive to the useful
ness of property and to the prosperity of the
ufacturng classes is as adverse to the integrity Of
the Government as to that OF the community. For
these reasons it is hereby ordered that all articles
in whatsoever hands found, which can be shown
to the satisfaction OF the assessor to have
been manufactured before the establishment Of
the district, shall be held free from the present
assessment or collection of tax, unless transported
beyond the limits OF the States lately in insurrec-
ton.
Manufacturers Of articles liable to seizure for
want OF inspection marks, will present to the as
SCISSOR evidence that such articles were manufsc-
tured prior to the establishment of the district,
and the assessor, IL satisfied, will cause such arti
cles TO be 80 marked as to be identified and sold
without liability to seizure.
All articles transported beyond the limits Of the
Statss lately in inslrrcoton will be subject TO the
tax due under the law in foroe at the time they
were manufactured. I'll. MoCULLOCH,
op5 y ji,,,yy ,. Secretary OF the Treasury.