Western Reserve chronicle. [volume] (Warren, Ohio) 1855-1921, 1866-05-16
Explanation of the New Inter
nal Revenue Bill.

w MASU1NGTON, MAY MI. GarnelQ OF
the Committee of Ways and Means, re-
ported joint resolution to provide for
exemption Of crude petroleum from tax
or duty.
Mr.. Morrill, explained the necessity for
passing joint resolution now. Manu-.
facturers of parafned oil were now obliged
to pay a tax on crude petroleum in face
of loss, and many of them were COM
PEELED to suspend operations as the work.
men were becoming riotous and destroy
ing the wells.
The Committee on Ways and Means
proposed to take off the tax on the first
of July, and it might as well be done
now, so as to let business go on. The
joint resolution was considered and pass
ed.
Mr.. Morrill, entered into full expla-
nation of the bill. He said in revising
our Internal Revenue laws, the question
that meets US at the threshold is how
much revenue have we to show, and how
much will our necessities require for an
other year? The last question has been
specially answered by the Secretary of
the Treasury who has fixed upon $3.50
000, 600, provided the appropriations of
Congress do not exceed the estimates as
seen, it would be safe to rely upon, in
cluding the revenue from tariffs as well
as internal taxes. In making an esti-
mate of the probable receipts from the
latter, we have as basis full year, and
the present year of experience, and the
date is sufficiently complete to be of val
ue. Our receipts for 1864-5 were, in
round numbers, $2l0, 100000 and the re-
turns therefore of 1865 show that we
may expect for the year an increase of
nearly five percentum, or not less than
from $500, 0,000,0 900 to S305, 100000 One
of the largest and best paying consumers
of the products of the country during
the war was the government, but it is so
no longer. War prices no longer rule,
and it is inevitable that manufactures
must be still further reduced in value un-
til we reach the solid gold standard, as
recognized by the commercial world
The tax of manufacturers, therefore,
must be far less productive for the year
ending July Both, 1867, than heretofore,
as it will be computed at less per cent
age if the bill should be adopted. and far
less aggregate amount. Then as a general
rule, in season of falling prices, it is
AOb SsoAAGt OA0 AOscC5y D6 CAL
culated at the end of the year. There
fore the tax on incomes and the diVi-
dends from banks and other corporations
for the next year should not be expected
to yield anything like the amount de-
rived from these sources for the wears
ending December, 1864 and 1865. Nor
can our foreign importations be main
tanned upon their present scale. 1t is
very desirable that they should not be,
as they are supplantlng a large share of
the labor of our own people, and because
payment viii at present be made chiefly
in q. S. bonds. We cannot fail to know
that with such an influx of foreign goods.
as we have witnessed the present season
that trade must In some degree be post
poned until we recover from the exhaust
ion caused by the war; until capital and
labor can adjust itself to the new condi-
tion of peace, or until we have something
to exchange for British, French and Ger.
man iron, wine and haberdashery besides
our national credit. 1t is right, however,
to look for an increase of revenue in con-
sequence of the close of the war, and we
may expect something from the States
lately in rebellion, though not an amount
in proportion to their relative numbers.
Meyer fruitful in taxable resources they
have less now than ever. We obtain
outside of commerce enough to cover the
bills already passed in one or the other
House. Taking all these things into con-
as well as others not necessary
to mention, the Committee of Ways and
Means have felt willing to report the bill
as it stands, which will reduce the tax
alton in round numbers to S75,000,O00.-I
1t Is also prudent to anticipate a large
6iminution from customs, as it ought not
to be expected to continue at double the
ever obtained in the most pros
porous times. Our receipts from miscel-
laneous sources the coming year will be
very light as they have recently accrued,
mainly from property disposed of at the
close of the war and premiums on the
sales of gold. The sources are already
nearly extinct, and we seek to make
some compensation for these losses by
the tax on cotton &c., or by
raising it from 2 to SC. per pound. Sup
posing that two millions bales should be
raised this season and be taxed, and l !
think the amount will be considerably |
greater, notwithstanding the actual want |
Of good seed and the changed system of |
labor. We ought to obtain a revenue
rom this source of S264,000,000. The |
crop may so far exceed the number of
bales mentioned as to cover all the cot
.on which will escape taxation, or which
gllL be used on the plantations and that /
viii be exported in the shape of manu-
acturing, and upon which a drawback |
will be allowed, but it will be safer to es-
innate the probable receipts on a lower
basis. Ali human calculations are sub
ect to contingencies, and final calcula-
ions are perhaps more exposed to be
hipwl ecked of all, but if we retain the
ak on cotton as proposed we can safely
elease, IN my opinion, other taxes to the
.xtent contemplated by the bill, other
wise we must reinstate something already
tricken out from the roll of taxation, or
ind some new source of revenue which
will produce an equal amount, and 1 say
his without feeling very confident that
he rates for income tax will not he al
owed to be changed much from the ex-
sting law. .a 2
The following were the treasury, re-
'eipts for the fiscal year ending June 80,
.S65: ~ lts
Customs, $84, ,92S, 900; Internal Rev
,nue, S209, ,464, 600: miscellaneous, $685.
rs, 1876; total receipts exclusive of loans,
1929, SCI, ,1S6.
The following are estimates of the treas
Try receipts for the fiscal year ending
June 80, 1866.
Custom receipts to April 1st, 1866, ac-
ual coin, Sl28, ,967 $40; Internal Revenue
TO-, actual, S243, 800, ,54S; miscellaneous
o April lst, 1866, actual premium on gold,
.tc., SS7, ,1S3, 300; aggregate receipts to
April lst, S410, 0,041, ,232; estimated custom
eceipts from April lst to June S0th, $780,
10000; estimated Internal Revenue do.
560, 600, 900, estimated miscellaneous re-
,eipts do. 100000. Total aggregate
'eceipts from all sources for the fiscal
Iear ending June 80, S50l, ,54I, 232. Es-
innate for fiscal year ending June S0,'67
customs S125, 100000; Internal ReY-
niue, S260,000,0OO; increase on cotton,
so, ,000, 900; spirits, SI5,e 900; miscel-
aneous, S10,000,000. Total, 1926, 100000.
of the Secretary of the
Treasury, S350,000,0OO. Available for i
he reduction of taxation, S75, ,O00,O 900. 1t
will be seen that we estimate reduction !
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