The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1866-05-03
ff'spestant Letter &roa, ,the csosnass-
ssencr OF fInternsI RevesassE.,e....,

ported III Congress for the eq1akZa
tien of bouaties will require an
Expenditure of sse0, 600, 900; thus
requiring an additional annual pay
tnrsnt for interest OF, some S1S, 600, :
600, and aslks, s'what effect this pro-.
posed increase of the national debt
and annual taxaionsis likely. In your
opinion, have ssponS the slnanees
and Development Of the cotoltry, and
what changes may be neeessitated
thereby in our future revenue system
and policy" Mr. Wells replies:
WASHINGTON, April %, 1866,
|. :. SIRs In reply to your note of the
10Th, relative to the subject of appro-
priations involving additional loans
or increased taxation, permit me to
speak without reserve
The country is now passing through
a critical period of its financial expe-
rience, and it seems essential that the
proposition should he proclaimed and
maintained. that the borrowing pc
Rod for the nation has passed, and
that henceforth, and until. ano. her
extraordinary emergency arises, lhe
! national expenditures are to be met
by taxation exclusively. Nothing
less can satisfy the holders Of the
public debt--nothing less can sustain
national credit at such standard as
will keep open to the nation the re-
source Of loans for future cmergen-
cies.
The existing public debt Of the
United States taking accumulated
wealth and rate of interest into con-
sideration) is now comparatively
larger than that of any of the States
of the Old World, and is nly cx-
ceeded in actual amount b that of
Great Britain. It is now proposed
to increase this enormous debt to such
an extent that the annual interest on
the addition will be nearly equal to
one-fourth of the average annual ex-
penditures Of the whole Government
during the decade prior to the com
menccment of the rebellion
The largest amount of revenue
ever drawn from the British people
IN any one year, irrespective Of loans,
has never exceeded 1875, 100000
while the amount of revenue which
the United States has drawn during
the first three quarters Of the current
fiscal year--by the various forms of
direct and indirect taxation-has
been 410, 100000, or at the rate of
upwards of 540,000,00O per annum.
Ihls immense sum, in opposition to
the settled policy of all other nations,
and in defiance of their experience,
has been taken mainly from the
industry Of the country. The present
large receipts Of revenue cannot,
however, be accepted as any sure in
dlcations of the future; and so long
as they are drawn mainly from taxes
on industry, they are no satisfactory
indications Of the prosperity of the
country. For the next fiscal year,
moreover, large falling off in re-
ceipts, arising from diminished i'm
portations, changes in values and
quantities of industrial products, and
from other causes, may be expected.
This deficit cannot now be easily
estimated, but that it will be large
cannot be doubted, especially if the
be visited by pcstilence.
1t would seem as if the mere state
ment of these facts ought to suffice
as an argument against any immediate
increase of our enormous burden Of
debt and taxation.
If, however, we further consider
the manner and distribution Of the
taxation by which the nation is ut
present raising its revenues, the ar
Sument becomes even more cogent
and unanswcrabin
AS IS we'll known, the exemption
from taxation at present in the United
States of any form of capital, or any
process or result of industry, is the
exception rather than the rule. This
system necessarily involves q most
extensive duplication of taxes, and
this III turn entails and maintains IN
undue enhancement of prices; de-
crease both of production and con-
sumption, and consequently Of wealth;
restriction of expectations and of
foreign commerce; and large in
crease in the machinery and expense
of the revenue collection. 1t needs
no gift of prophecy or trained finan-
clal intellect to determine the result
OF persistency in such policy; for
nations, like individuals, have limits
to their resources; and nations, like
individuals, may have their patriot