The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1867-02-14
House OF Representatives.
R.s,,ss,o lCosexos.

taken from the Speakers table, referred to the
Committee OF Ways and Means and ordered 70 be
Mr.. HARDING, of Illinois, said he was opposed
TO the measure, and would not give assent TO any
thing that would give II a better position,
The SPEAKER quieted his fears in that respect
by assuring him that Mr.. MOrrill's motion gave 70
Mr.. WHALEY, of West Virginia, introduced a
bill TO establish mail route in West Virginia and
Virginia, which was referred to the Postomee
The House. on motion OF Mr.. MORRILL,, re-
solved itself into Committee of the Whole on the
State of the Union, Mr.. Boutwell, in the chair, and
proceeded TO the consideration of the bill reported
from the Committee OF Ways and Means on Feb
ruary II, to amend the existing laws relative TO
Mr.. MORRILL, Chairman of the Committee Of
Ways and Means, explained the bill, and submit
ted his views at length on the subject OF internh
taxation. He said;
Mr.. Chairman-The Committee of Ways and
Means have sought TO afford the greatest possible
relief TO the country consistent with prudent re-
gard to the public credit, and were led in the out
set TO consider what would be the most feasible
mode of accomplishing this object and leave, at
the same time, the fewest impediments in the way
of general industry. If the tax on distilled spirits,
tobacco and cigars were fully paid, the taxes on
the major part of other manufactures could have
been remitted. Unfortunately necessary changes
in the law have proved that two dollars, whether
above the price of whisky or not is certainly
above the price of those who make 1t.
The tax betrays the fact that whoever is in the
business somehow corruptly evaoes tne payneat
ments proposed will eventually secure more reve-
nue. from spirits, we are forced now to lean upon
other articles, which will doubtless be released at
no distant day. Either we must reduce per
centage of the tax all manufactures or entirely
exempt those articles having the strongest claims
to exemption, IN consequence Of inevitable dupli-
cation OF taxes, of directly swelling the cost OF
living. From the first and by intendment very
little revenue has been sought by any tax upon
property as such, and therefore the agricultural
and mining interests have been shielded; but COM
capital have made by far the most bountiful con-
tTibutions for the support OF the nation Licenses
or special taxes are paid by the parties engaged in
business, and they have to trust to their chances
whether any portion of these sums are ever re-
ceived.
In prosperous seasons, or when prices are ad-
vancing, the consumer pays his due proportion;
but when prices falling, losses by the producer
are inevitable. The Committee of Ways and Means
have adopted the second plan. II is certain that TO
reduce taxation from five 10 four per cent. would
have afforded very inconsiderable relief and yet
the same labor and expense of collecting and pay
ing the revenue would have beenperpetuated.
By exempting entirely from taxes such articles
as silk, clothing leather, pottery ware, tin ware
and cooperage Of all sorts, with large number of
other articles, upon which a tax was petty an
noyance to the payer as we'll as TO the government
the committee feel that they propose 70 distribute
equal favor over the whole country, and by re-
moving the tax from some of the common neces-
saries Of life actually aid all branches of industry.
The theory is well settled that all taxes in the
end are distributed; and If the heavy taxation in
creases the cost Of production of raw materials, or
of manufactures, SO q reduction OF taxation di-
minishes the cost in an equal ratio. Whatever les
sens the cost of living Is palpable benefit 70 all
oranches OF INDUSTRY, as mucn SO as wnatever ies-
indicated, we shall soon reach the point where
taxes may be levied only upon very small num-
Der OF articles, and the cost, vexation and annoy
ance of revenue officers be removed.
Last year we liberated a number OF articles, the
benefit from which has just begun to operate, and
now we shall have added to the number to the ex-
tent of surrendering an amount of revenue equal
to nearly one-half of all we Obtained in the first
year of the operation of the Internal Revenue
law. For what we have done in each case of ex-
emption, trust satisfactory reasons and explana-
ions mil ha af ha fhn
in the progress of the bill. But there are few
items which shall attempt to explain in advance.
IrecogniZe the fact that our taxes for the past
five years have been excessive, and nothing but
the danger which menaced the nation justified the
ton. But little more than six months ago we
gave relief to the extent of not less than seventy
millions, and now we shall give still further re-
at which we reach the amount which will pay our
ordinary expenses, the interest on the public debt,
and leave a snug balance for some diminution OF
the public debt. This is absolutely essential TO
the public credit.
The estimate of the receipts for the next fiscal
year, ending June 80, 1868, as recently revised by
the Treasury Department and the Commissioner
of Internal Revenue reduce the estimates from
the sums estimated ninety days ago to the fol-
lowing
From customs, $780, 900
From internal revenue, 2400OO,OO0
From lands, 1,000,0O0
From miscellaneous sources, 20,000,000
Total, 1891 ZOO, 900
This last item will almost entirely depend upon
the amount of coin we may have TO sell, and the
premium obtained upon 1t.
Looking at the general depression of trade, as
well abroad as at home, and the recent falling of
of customs and internal revenue, the revised and
reduced estimates would appear to be fully justi-
fled. The same revision Of the expenditures for
the year ending 1868 brings out items to the origt
nal estimate already ascertained OF not less than
So, ,OO0 900, or making the total at S357247641 49,
besides any claims passed upon by Congress. This
leaves to apply on the public debt and for reduc-
tion of taxes less than $34 100000.
The committee have ventured to use up the
entire surplus or margin in various reductions OF
taxes and exemptions, believing that we have
secured such an increase OF revenue as Will leave
something to apply on the public debt.
The committee have felt willing for the coming
year to give the largest possible amount OF relief
10 the business interests of the country, and have
also been willing TO reduce the revenue that no
large balance would remain in the Treasury to
| tempt any one TO disregard the wisdom OF
economy.
Having gone in the line Of reduction as far as it
is prudent 70 co. IL follows that, If any other re-
ductons should be proposed it will be our duty at
once 10 seek something OF equal amount TO be re-
stored TO the list Of taxable articles. II there
any gentlemen who disbelieve the recltals con-
ceTning idle factories, forges, furnaces and foun-
dries, and who think we are still on the top wave
of prosperity, and so may venture deeper cut
into our revenues invite them 70 look at the COM
/ paratiye returns of some OF our principal rail-
roads, to the present state of navigation inte-
rests, TO the decline in the commerce of canals,
TO our diminished export trade in cattle horses,
hogs beef butter, cotton and manufactures of cot
i ton, iron, copper and BRASS together with nume-
rous other articles. This is an exposition of which
1 have the details, but which / shall not, unless
| compelled to do so, place upon the record.
| Depressed trade must be conceded 70 be, the
depression is no greater, perhaps not yet great,
as might be expected 10 follow the recent exhaust
i've struggle OF the country. Nor is it at all equal
TO what has been the experience of Great Britain
| for the past year, where cholera, cattle plague,
| cotton famine, bad harvests and a Tcial
crisis have all successfully culminated where the
bank rate of interest for three months kept at
| 10 per cent, and where thousands OF workmen
| In han starvation l.