The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-02-07

Fund and Inequalities OF the Present
system.
We have received the report of one of
the members Of the special Revenue Commits
sion, which has been sent into Congress, recon-
mending the establishment of sinking fund
for the payment of the national debt 1t is pro-
posed 10 raise fund for this purpose by levy
ing tax of one per cent upon thepar value of
the United States bonds. In presenting this
scheme for the consideration of Congress the
amount and character of our national debt is
reviewed, together with the amount of interest
and comparison of its value in gold and cur
rency. 1t is also claimed that the laws Of Con-
gress exempting government bonds from taxa
ton only apply to State and municipal taxes,
and that the provisions of those laws do not
in the least preclude Congress from providing
for tax on all bonds issued under authority Of
that body. There is no doubt but that this is
the correct Interpretation Of the law; in fact
Congress has already established precedent
by requiring the payment of q specified amount
on the income received from these bonds.
The Commissioner also reviews the resources
of the country and its capacity to bear the
enormous burdens placed upon 1t by our late
struggle for existence. The real and personal
property Of the country is estimated to be, in
elusive of the national securities, eighteen
thousand millions of dollars, or upwards of If
teen thousand millions, exclusive of those
bonds With this amount of wealth as basis
for raising revenue, the argument is deduced
that 1t is necessary that there should be an
equality in levying the tax to meet the obliga-
tons of the government, or privileged class
will spring up which will endanger the very
existence of our republican institutions. All
classes of Property, with the exception of United
States bonds, ere now called upon to pay their
portion Of State and local taxes This class of
taxes has become quito heavy, and increased
at an alarming rate during the war. IT. then,
the United States bonds are exempt from local
taxation, there seems to be no just reason why
they should not contribute toward the final
payment of the debt of which they are
part The testimony in favor of that policy
of number Of capitalists, bondholders and
bankers is given in FULL which is one Of the
most interesting portions of the report. The
facts thus presented are worthy of the candid
consideration Of Congress, and the present is
the favorable period to take action in the mat
ter. The change which is now going on in the
commercial and business interests of the country
requires modification of the Internal Revenue
laws in order that they may be adapted to this
new order Of things This is necessary to pre-
vent irritation and jealousy of interests all
over the land. There is, therefore, no better
time to readjust the whole question Of taxation.
all alike. than the present.
The evils Of inequality in the apportionment
of taxes, and the danger which threatens us in
exempting one class Of capital from all taxa
ton, is very clearly depicted in this report The
power which nenopoiies will obtain IN the
political affairs of the country, as well as the
direct tendency to revolution on the one hand,
or the establishment Of privileged class which
will reduce the laboring portion Of the COM
munity to mere slaves, Is shown to be the
logical result of exempting any particular kind
OF property from the burden Of our debt. There
Is no telling the evils that may DO forced upon
us unless timely remedyis applied. Whether
the system recommended by Mr.. Hayes on
behalf Of the Revenue Commission, and bis
bill for Its practical application ID the best plan
that can be devised to prevent this evil, we
leave 1t for Congress to determine. But 1t must
be apparent to every observing mind that
some important changes in our revenue
system must be made either In the
laws or their application, or both. The
nil nj asxhun "a q ufo md
which one-third of the tax II never paid, nor
will they rest contented when they come 70
realize that Wall street speoulaton and other
capitalists can 60 to Warrington and get them
selves relieved from the payment Of their
portion Of the tax, ~ b now the case. We
have heretofore shown how the brokers have
managed to secure IN order preventing the
enforcement Of the Revenue laws on their
business, but that IL mot the only instance. Of
special interoession and success Of moneyed
men ana corporations The danger which Mr..
Hayes sees in tho distance in regard 10 mono
poles b already upon uA There IL striking
illustration Of this iAct In the action Of the
Union Ferry Company Of Brooklyn. This COM
pany has managed TO evade the payment Of Its
just tax, and, by sendiAg IL counsel 10 Con-
gress, il now staving OF the enforcement Of
the law, and thus depriving the government Of
thirty thousand dollars of revenue now over
due. II one company oan do this, how long
will II be before every organization Of the kind
In the country will secure the same thing, and
thus place the whole burthen Of our taxes upon
the middle classes andsthe industrial intcrestsi
The Revenue law Of 1865 requires that any
person, Arm, company or corporation owning
or possessing, or having the care or manage
ment Of any railroad, ferry, toll-bridge or road,