The Lancaster gazette. [volume] (Lancaster, Ohio) 1863-1886, 1865-09-14
Established 1925.

however, if they want to try the ex-
pertinent Of taxing the securities Of
the United States, to their getting
Kentucky, or New Jersey, or Delaware
the only so.called Democratic States,
to pass such law, and the Supreme
Court will undoubtedly declare it null
and void. But I trust Ohio will enter
into no such step toward reputation.
We have done too well during the war
to tarnish our faith with those who
loaned US money when the most san
g1ine were anxious Tor the fate OF our
country. Ohio is too well able TO bear
her full share Of the burden Of this
debt to run tilt upon the Supreme
Court, that we may, in violation Of the
plightcd faith Of the nation, levy a tax
upon Government securities. The
incomes derived from these securities
now paw the Natioaal Government a
tax Of five to ten per cent. and are sub
ject to such additional taxes as may
be assessed upon them, in connection
with other property within the United
States.
OUR SYSTEM OF TAXATION.
And in this connection, fellow -citi
zens, it may be well enough for US to
consider the system Of taxes that has
been devised during the progress Ct
the war, to sustain the national credit.
Before the war, our revenue was de.
rived exclusively from q moderate du-
ty on imported goods, 50 that the tax.
gatherer was not seen, during our
time, in the interior States. The nee.
essitios of the war compelled us to wi
den greatly our system Of taxation
and no subject gave to the last Con.
gress greater difficulty than the fran
ing of judicious tox laws. Certain
general principles were adopted, which
| believe, are right in themselves, and
will probably be observed in all iu
ture tax laws hereafter framed The
first and most important is, that, with
certain exceptions, no direct tax sho'd
be levied upon property. Lands and
household goods, and stock of various
kinds, are all sufficiently taxed by the
States, and any general addition to The
burden of direct taxes woulds have
been oppressive to the people. And
then. the Constitution Of the United
States required that al! direct take:
should be appointed among the setter.
al States, according TO representation
This would have required tax three
and half times as great upon the
State of Rhode Island, while the State
Of Rhode Island could much more
readily pay given amount Of taz
t6an the State of Iowa. This limita
tion of the Constitution, for which
there is now no reason, will Away
prevent direct taxes, to any considera
Bile amount, until wealth is mucl
more generally diffused, andmuch bet
ter equalized than it is now. A di
rect tax, to the amount of fifteen mil
lions, was levied in 1862, but was con
fined to that year. In violation,
think, ofthc general principle | have
stated, direct tax is levied upon car
riages, pianos, plate, and few ar
ticles of that kind Of ofpersonal proper
ty. l think this tax ought to be re
pealed among the first, being a discrim
ination against certain kinds of prop
erty, and that the United States ough
to levy no tax on any kind of property
on hand. Another principle adopted
was to levy, as far as possible, taxe'
Upon articles of luxury which entered
into general consumption. And thcst
q. articles were mainly whisky, spirits
and tobacco, European countries de
rive much the largest portion of thei
incomes from these articles, but thei
|, system of collection is much easieI
than ours. because we are great 10
bacco producing country and a greG
whisky manufacturing country. Th
difficulty in these taxes is not tina
they are oppressive or indefensiblt
but it is very hard 10 collect the tax
The motive for illicit distilation o
whisky, and the frauds in the manu-
facture of tobacco, have been so grea
as to defeat the proposed revenue
This is defect in the execution o
the law that is constantly being i'm
proved, and we may now confdentl.
hope that these articles of whisky ant
tobacco will yield avery large revenne
The consumption Of whiskey in The
United States in 1860 was estimated
at nearly one hundred million gallons
1t costs about seventeen cents to pro
duce it, hut when consumed ii cost th
consumer about two dollars, Thi
enormous profit was divided betweel
the various retailers of spurious liq
uors and the infinite number of artic
les of which whisky is the chief com
poncnt part. 1t is manifest that if
considerable portion of this profit coz
be realized by the United States j
would bo a principal source Of rev
enue, and so tar as it tended to checl
the consumption Of whiskey it woul(
tend to the improvements of the MOI
ais of our people. The same might b
said of tobacco, and of the frauds tha
have been practiced to etade the Gov
ernment duty on it.
THE RECIPROCITY TREATY
In this conn ection it may be prope
for me to allude to a subject in whicl
you, the citizens of this part of Ohio
are deeply interested. The late Re
ciprocity Treaty with Canada is abou
to terminate. 1t should have termin
ated long ago. 1t was unequal ant
unjust in its operations In fact j
was misnamed; there was no 'recipro
city" about it, as there can be non