The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-01-04


uous and fermented liquors and tobacco while IN the
United States during tue corresponding fiscal with
out q the gross revenue Of Sss the percentage
OF receipts from the same articles Was only BOO per
cent
AS further illustration ss the extent to which indus
Try, exempt 10 Great Britain, 10 taxed IN the United
States II be stated that the TAI Of six per cent
levied and collected during the fiscal year 1854 ON the
value OF produces Of the woolen industry Aassa
chuses alone ($4S A30, 67l equivalent to nearly
twenty per cent tho whole capital (sl4 1885, s30) in
vested in this business while the tax the value Of
boots and shoes manufactured in the State during
the same year. equal 70 thirty per cent
II must therefore, be obvious that revenue system
like the above necessarily involves most extensive
duplication OF taxes, which in turn entails and main
tans an undue enhancement of prices; both
OF production and consumption, and consequently OF
wealth; arsstrcton OF expectation and Of foreign CON-
msrce and large increase in the machinery and ex-
pense OF collection. ,Efn
The experience OF all civilized nations shows that the
amount OF circulating medium required by any country
bears very small ratio 70 the volume OF its business
What that ratio be determined BY the practice OF
each nation under system which puts no unnatural
restraint the issue OF currency Such country was
the United States before the war In afew only OF the
Sates and those the newest and most backward, was
there any serious restraint put upon tho creation OF
banks and the Of bank notes In most Of them and
banking and the issuing Of paper money were freely ex
ercised subject 10 certain conditions looking 70 the pub
circulation for their own citizens but hey Hooded the
agricultural West also with their bills Speaking gsne-
rally therefore the people OF the United States had ~
the circulating medium which they required or would
receive And how much was itY Under this free sys-
the called for land that in the fevsred
fifteen milions Now the existing circulation exceeds
seven hundred mlliona What circumstances in the
S ~ % as ss
necessary to into nice computations TO show that
there such tusyine circumstaaces and very
probable that the peculiar condition OF the country since
the demands permanent addition 70 the circulating
medium Shortened credits the increase Of sales for
West and he insrodUc,ion Of paid labor a the
South are al now influences added 70 the
general effect q national growth But Con-
authorizing issue Of national bank notes 70 the extent
Of $500 advance Of hfy per cent beyond the
specie basis This provision would seem TO be ample
for all present wants and for the future also far q Z
commercial peoples is toward economy In the Of
rency The circulating medium does not advance in the
e, .a As :r 70
1850 70 $780, the capital Of banks increased l per cent
loans and discouns Is per cent deposits lis per cent
only is per cent the explanation ID that bank depo
sits and other economical expedcnts had largely taken
I. has been urged that BY allowing the present volume
OF currency TO remain unatered the increase in business
and in the developmsn. Of the country would gradually
Of the acknowledged present redundancy To this how
ever may be replied that the retaining Of the present
amount OF currency In circulation tends 70 increase no
business except what is speculative and 70 check the
very development which q expected prove remedial
10 The economic history Of the United States and il is
fashionable and comfortable 70 believe that the expe
Renee Of older countries s no criterion for our ont
merely OF productive and recuperatve power; can.
not set scientific principles Defiance and the laws Of
and OF national development are as truly laws ss
those which regulate the course OF the planets or the a.
formation Of the seasons
Specie payments, In Short can be resumed In only ono
way, viz:-By lining the paper money OF the govern
ment 70 an equality with gold and, - no one Acubss
nav there 3 Both the nsoSs VII and ability 70
DO the enhancement Of the credit Of tho government
therefore, can but BE- regarded - an adjunct 70 this end
and entirely subordinate TO the important work Of
bringing the existing relations Of gold and currency nfo
more harmonious propositions Reduces the quantity Of
reduce the quantity OF paper money 10 b. redeemed
the value Of the remainder and the ability TO redeem
win Be increased n esdnstsssal prepor:ion In yisw
moreover Of the fact thas no nation issuing pApsf
money has ever succeeded in maintaining IT. circuia-
tiOn At par, has rcdcenet IL dollar for dollar in
BY the government cannot be contemplated,
whatever measures are now taken looking to tne 10
complete withdrawal q every form Of national paper cur
rency issued directly by the Treasury.
I'm be objected that the conversion OF the existing
amount Of interest bearing notes into interest bear
ing securities would largely increase the annual burden
Of national interest We reply that the gain in the dmi-
mutton OF interest would poorly compensate for the evils
OF fluctuations and deprecations which expert
and the experience OF all other nations has shown
10 be the nvarable Of adoption on
the part OF State Of any other than metallic cur
rcncy.
NATIONAL Hrcnrn AND xxrxymruREs ron 1so7-s
To aid In the formation Of opinion on this subject
the Commissioner presents the following estimates Of
the likely to for the fiscal 1s67S
under the operation Of the existing laws which esti-
maies it win be observed. differ somewhat nom those
presented BY the Secretary OF the Treasury.
From internal revenue s........... s2!S, ooo oCo
xscsllsnsous- public lands, premium
onSgold, &C.,. SO,OOOOO0
Total Sass. 600 600
REDrcrIox PUBLIC DEBT. .
careful study Of The whole subec. Of the national
condition Of the country has, however led the Commas
sioner unhesatingy 70 the conclusion that rapid reduc
ton Of than rapid reduction OF the prinCi
pal OF public debt present the policy Of the
government and that the adoption Of this course 10 far
be discharged wil the contrary greatly accelerate IL
PROTECTIVE NcRRAss RyvKHuE PROM NCRxAes
NATIONAL wKALrH
In discussing the question OF the reduction OF taxation
some allowance should b. made fer continued ana cor
tain gain which viii undoubtedly accrue 70 the national
revenue under any circumstances from the continued
increase Ct the wealth and population Of the country
The or this increase Great Britain estimated
by the Chancellor Of the ExcheQuer have averaged for
the sr ysau prior 70 The ysau 1865, xl,7Soooo
me increase in the value Of the real and personal prop
and 1890 iss7 per can't and nom 1870 70 Isso q
me average annual increase in the va,us Of the real
end personal property Of Great BritaM from 1871
1888 10 estimated u three and . half per cent gsts-
mating the average the United Ssatss seven per
cent per aanum, Ne are waranted In assuming the
amount Of increase Of revenue due 70 the inc0assd
wealth Of The country - nss les than SIS per
anuumL r
ADMINISTRATIONS voR RRprcI1on o. INTERNAL TAXATION.
The Commissioner In view Of the probable surplus Of
revenue likely 70 accrue, even under the present admin
esrave coalition OF the law and the prospective large
Payments % account Of bouutiss would recommend the
followinG specific reductions Of taxation:--
Nra "A reductions Of the present general tan u i've
per cent the prsAucts and sales Of manufacturing
Industry v three Per CONT and corresponding rsduc
ZION IN specific taxss levied analogous branches q
industry.
Sso1dAn entire REMOVAL q ali drscs Internal taxss
levied upon the pro1uctea or bar plate and sheet
Tcn and a such additional taxes - are YEA levied upoA
the elements of The manufActufs Of steal
TAird-A rsductiOu Of the TAI OF two and half per
cent on The ers receipts Of sugar rsAnsn 70 one and
half or one pr cont
FswfA- An entire removal Of the internal rsvsuus
duty On salphsrc acd and o. The mining and napufac
ture Of emery.
FysA-Ths ssurs removal Of the internal revenue sax
upon the manufacture Of salA
DUnU o. raw nxrHmAfA
In ths department Of the tariff, the Commissoner fur