The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-03-26


sent State Convention will act unwisely
towards themselves and unjustly towards their
Southern brethren if they do not adopt these
suggestions and come back promptly and
joyously into the national fold.
FRAUDS UNDER THE INTERNAL REVENUE LAW
1t was to be expected that fraud in various
shapes would result from the operations Of the
Internal Revenue law. 1t was merely an ex-
pertinent in the beginning, and Of course had
to be improved by degrees, and will still have
to be remodelled by each successive Congress
until it approaches perfection. Under the best
of circumstances its operation must be more
or less obnoxious and demoralizlng. Even in
England, where the income tax has been in
effect for long time, 1t is still far from perfect
Its demoralizing tendency is noted by Mr..
Goodwin Smith, and has been admitted by Mr..
Gladstone, as developed in the many false re-
turns of income, which, the former authority
states, have in many cases been the first down
ward step of the business man towards mer-
camille dishonor. If the temptation to make
false returns Is 30 great in England, where the
tax is only two and half per cent, how much
greater is it here, where we have to pay five
and ten per cent on our incomes and where
the machinery for collecting the internal reve-
nue. is quite new and by no means free from
corruption? The case of the dstillery frauds
now on trial shows how the government can be
defrauded by its own officials, one of whom
admits in his testimony that he allowed the
| government brands to be used on barrels OF
whiskey which he knew had not paid the tax,
and admitted further that he had been bribed
to do SO. This, we presume, is but one case in
thousand. 1t is manifestly the duty Of Congress,
in amending the Internal Revenue law, which
forms part of their duty this session, to remove
all the obnoxious portions Of it, and so frame
it as to leave as little temptation to fraud as
possible. 1t has been recommended by the
commission, for instance, to exempt from tax
| alton on incomes thousand dollars, instead
| of six hundred, as the law now stands This
would be great relief to people with small
Incomes who can barely afford to pay five per
cent of their earnings. Its also, we believe, in
contemplation to allow deduction on taxable
income of fifty dollars for every minor in q
family. This is not an Objectionable amend
ment. While it is true that the government must
have revenue, and q large one, for many
years to come in order to liquidato our heavy
national debt, and that tho revenue must come
from taxation, judicious legislation might re-
lieve the mode OF its collection OF many Of its
most obnoxious features. We have gathered q
good deal of experience in this matter Even
the frauds occasionally brought to light teach
us many ways whereby the law can be rem
dercd less onerous, more equal upon all
classes, and the returns more profitable. We
trust that Congress will give due attention to
the revision Of the Internal Revenue law when
1t comes before them Tor legislation, and that
future Congresses will continue 10 improve
upon it until put 1t into proper shape.
ADVICE TO THE PEoP1E.-Don't let your sport
able property" lie around loose. The recent
extensive bond robberies were the inevitable
results Of carelessness in this respect One
wealthy man put millions ofdollars in his safe, or
on top Of it, or behind 1t, every night, and hardly
thought to turn the kcy in his Office door. What
wonder that he was robbed Another rich gen.
tlcman in Madison avenue put fortune in a
little tin box, as if to make 1t handy for thieves,
and the thieves came and carried II away. Tho
real wonder in bob cases would arise II the
men had not been robbed; yet these robberies
get the city bad reputation as centre of VII
lany, and are in the highest degree demoraliz-
ing; for in all such cases the crime Is finally
compounded with the rogue He not only goes
scot free from justice, but, on condition of giving
up the larger part Of the property, Is permitted
| to keep the rest Thus his ingenuity comes to
have as legitimate reward as II IL were an
honest one, and this tends to break down in the
popular mind the distinctions between right and
wrong. The remedy lies with the owners of tho
property. In the first place, men should not
keep by them such large sums incoupon bonds
that is, in current money. These amounts in
| registered bonds, though stolen, would have
| been worthless TO the thieves. In the second
place. if men, to avoid the lt.le trouble of regis
trltion, will keep coupon bonds let them at least
take common care Of their properly.
Posi- OFFICE IRREoUIARrrKs.-The complaints
which we daily receive from our country sub
scribers show that an extensive system Of pilfer-
ing prevails In the provincial post Offices or
en- route. One subscriber in Portsmouth, Ohio,
writes to us that since his subscription was
paid only half his papers have been received;
and as the paper Is addressed TO his letter box
in that town 1t would seem as IL there was
screw loose in the management Of that particu-
lar Office. One thing Is certain: that the paper
is regularly mailed 10 the subscribers address,
and that the fault does not lie with our clerks.
We cite this from large number Of other COM
plants because the evidence appears so posi-
tive that 1t is to The negligence or dishonesty
Of the Post Office subordinates that the nom
delivery Of the paper is 10 be attributed. II is
surprising that, Notwithstanding the immense