Daily Ohio statesman. [volume] (Columbus, Ohio) 1855-1870, 1866-01-25

American and English Finance,
Contrasted- AsIOn nishment Of the
London Times at Ihe Magnitude
of the Budget q a'l 90 ra1.rH,qIu'4
From the London Times. Dec! 29.l gn 4df
The financial position of America has
been presented to the world with singular
conciseness, but, In one respect, with pro-
portiOnate obscurity. Nothing can be
clearer than the amount of the obligations
now sustained by the United States. The
people owe f600,0OO,000, on which debt
they have to pay an annual interest of some
930,000,O00, which is about double the
amount Of the whole public expenditure of
the Union, before the civil war. In addi-I
tion to this dead weight they now conIem-l
plate an annual outlay OF about 100000, 900,
of which about fl7,000,000 belong to the
army and navy, and the remainder to the
civil and miscellaneous services. But this
is far from being the limit of their views.
They propose, or at least their Finance
Minister Is proposing for them, to
commence at once, not only the pay
ment of interest, but the repayment of
the principal of their debt, and that upon
so bold scale that Americans who
saw the beginning of the civil war
may live to see the end of the whole
charge which it entailed. Mr.. McCullOch
is actually OF opinion that in the budgets OF
| future years no less sun than 840,000,000
may and should be exclusively appropriate
ed to the liquidation of the public debt,
partly in payment of interest and partly in
reduction of principal. The proportion
available for the latter purpose would, of
course, gradually increase, until at the end
of acomparatiyely briet period the national
debt would be extinguished altogether. All
. IL, 4, s.,ta. 80 ala
and, indeed the means contemplated are
as plain as the ends proposed. For the exc
cution of his purpose Mr.. McCulloch only
asks that the taxation of the United States
shall be maintained at its present rate. 1t
is certain that revenue of GS0,000,000 can
be raised from the American people, for 1t
| is almost forthcoming already; and if these
receipts are but preserved, the whole trans
action will be accomplished at the specified
| time. .. ... ..... t..i gWIn ...
| Now, however comes the question. Is
this revenue of 9S0,000,000 raised on such
principles and in such a manner that we
| may expect it to be endured from year to
year throughout whole generation with
out murmur or remonstrance? We can
only say, in reply, that if such should be
the case, the americans must resemble no 9TH
| er people in the toOrld,, for it appears to us,
| as far as we can comprehend the incidence
of multitude OF impOsts, that no scheme
of taxation could be more productive of ir-
ritation and annoyance. 1t has its faults
in another way; for a protective tariff ex-
presses bad public economy; but that from
our present point of view is perhaps the
smaller defect of the two. What we can
hardly imagine is that a people like the
Americans will submitior course of years
to demands such as those of which Mr..
McCulloch's chief item of revenue is COM
posed. This side of his balance sheet is
concise in the extreme. 1t runs thus:
Customs Observation-Disclosures. .f20, 100000
Internal Revenue e..................... bS,OOO0e0
MiscellaneJ us.............,..,.....,.. 5OOO,OOO
The first item explains itself; the third is
in no need of explanation. But what is the
import of the second? How is that enor-
nous sum to be realized? 1t is clear that
upon the merits, or, in other words, the
composition of this item the whole scheme
| depends, and the question is obscure pre-
cisely in proportion as this aggregate is left
undistributed and unexplained. We can
now give some information on the point
enough, perhaps, to confirm the misgivings
which have been entertained-for, in ac-
counting for less than half of the total, we
| shall seem to be eXhausting the catalogue
| of financial veXatiOns. In the year which
ended last midsummer the actual receipts
from internal revenue did not much exceed
E40000,000, instead of reaching G55000,-
600; but to that amount the contributions
appear almost infinite in number and yari-
ETY.. To begin with direct taxation, we find
only G4,000000 entered under the head of
''income tax" pure and simple; but proper
| ty was assessed under many other forms.
Bank dividends, bank capital, bank de-
pOsits and bank notes were all made to pay,
though not all at the same rate, SO that,
from bank property generally, the State
obtained fl,600,000, From railroad divi-
dends for bonds about E670000 came in;
| from Investments in insurance offices about
half as much. Besides this, the salaries of
Government officers, exceeding f150a year,
were taxed with produce Of more than
half a million. So far, therefore, income and
property together contribute between f7,7
100000 and ES,0OO,000, or about as much as
we should raise by an income tax Of six
pence in the pound at home. Then come
so extensively applied as to provoke from
an American the remark that s'she couldn't
cough without putting a stamp in his
mouth the whole yield Is only E2,000,000,
Trade licenses imposed at various rates up-
on various kinds of business, produced
f2500000; but besides this general return,
we find a special contribution of E2000000
| from manufacturers of iron and steel, and
of E60O, 900 more from petroleum. y s,,ri
After this we get to the taxes on luxuries
or stimulants, in which class tobacco figures
for e., 100000, and alcohol in its. various
forms for f3,700,000. The taxes imposed
on sluxuries" more strictly understood, APP
pear to have been almost absolutely u1-
productive. We heard a great deal said
about this source Of revenue when the war
began, but it has dwindled practically to
nothing. AT any rate, we find that i''car-
riages, billiard tables, plate &c., are cred-
tied with product Of only 8l5000O.i Now,
If the items we have given, are added to-
gether, It will be found that their sum total
Is but about go, 700, 600 so that B35, 100000,
or almost twice as much again, has yet to
come before this aggregate of internal rev.
enue is realized. Can such taxation con-
sist with the commercial ease and general
prosperity by which taxesa are rendered en-
4 durable and productive? 1868 hinH BfHm
There is much to be said on this as on
other points Of Mr.. McCulloch's financial
g. 10, ~.