The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-12-09

sne puIuens vi federal taxation than OF the
Eastern states II - because they are not holders TO
the same extent OF national securities. This inc.
qualify cannot OF course be prevented by legal or
largely held where capital Is the most abundant:
anu they will he more equally distributed among the
respectve States, II not among the people, as the
new STATES approach the older ones III wealth.
THESE manifest truths indicate how important 1t Is
thaI the debt Of the United States should be home
may be paid to our own people In the way OF Inter-
est. In fact large national debt TO be tolerable
must OF necessity be home debt A nation that
owes heavily must have Its own people for creditors
Il y does not the debt win be dead weight upon
its industry and will be quite likely TO force it event
only able to pay the interest on their debt,
by steadily and rapidly reducing that debt. What
Is now required, as has been already intimated,
measures which viii tend not only TO prevent fur
Their expectation Of our bonds, and In the regular
that have been exported but which viii also tend to
restore those important interests that now Ian
gushing as the result OF the and adverse egis
latiOn the first and most Important OF these mea-
sures are those which shall bring about. without
necessary delay, the restoration Of the specie stand
ard. The financial difficulties under which the
country Is labOring may be traced directly to the
issue and continuance in circulation OF rredeemable
promises as lawful money The country Will not be
really ana reliably prosperous until there return
to specie payments. The question OF solvent. con-
vertible currency underlies all other financial and
question:; and until II Is settled and settled III ac
cOrdance with the teachings OF experience, all at
tempts at other financial and economical reforms
Will either fall absolutely or be but partially success
ful. A sound currency is the Likelihood OF u CON-
mercal nation II this Is debased the whole current
OF Its commercial life must be dsordered aud irrcgu
lar. The starting point In refOrmat0ry legislation
must be. here. Our debased currency must be re-
tired or raised to the par OF Specie or cease TO be
lawful money before substantial progress can be
made with other reforms.
Next In Importance to the subject or the currency
Is that of the revenues. Taxes areandispensabe for
the support Of the government; for the maintenance
OF the public credit and the payment Of the public
debit 10 tax heavily, not only without impoyerish-
Ing the people, but without checking enterprise or
putting shackles upon Industry requires the most
careful study not only of the resources of the c0un
try and its relations with other nations but also OF
the character OF the people affected by the nature
OF their institutions. While much may be learned
by the study OF the revenue systems OF European
nations, which have been perfected by years of ex-
perience and the employment of the highest talent,
1t must be obvious that these systems must undergo
tilted to the political and physical condition OF the
United States. In popular government like ours,
pay them. the popular will, If not the popular
prejudice must be listened to in the preparation Of
revenue laws. Justice must in some Instances,
OF revenue may be unavailable because resort to
them might be odius to q majority OF tax
enterprsing aud seli-roiiant. Most OF them are
the architects OF their fortunes;n few the in
hertors OF wealth. Engaged in various enterprises,
with constantly varying results, and In sharp com.
petition with each other they submit reluctantly TO
inquistions Of taxgatherers, which might not beiob
nONlOuS 10 people cSS ana llVIQr unucr
less liberal institutions. Then too the United States
are q new country, OF large extent and diversified
interests, with great natural resources IN the early
revenue which are suited to England, or Germany
France be unsuited to this country, but careful
and judicous observation and study are indlspen-
sable to the preparation OF tax bills suited to the pc
culiar interests OF its different sections 1t was
with view Of supplying Congress with such infor-
nation as was needed to secure the passage OF equal
and wise excise and tariff laws, which would yield
the largest with the least oppression and in
sion WAS created in iSp The creatnn nf this cnl'
mission was the first practical movement towards u
careful examination OF the business and resources Of
the country, with view TO the adoption OF judi
cious revenue system. The reports Of this COM
mission were interesting and valuable, and they
o SO clearly e necessity for further
Of July b. 1866, the Secretary OF the Treasury
authorized TO appoint an, officer IN his department,
whose duty II should be ITO inquire into all the
sources OF national revenue aud the best method of
to domestic industry; the mutual adjustment OF The
systems Of taxation by customs and excise, with a
View Of nsuring the requisite revenue with the least
disturbance or Inconvenience TO the progress IN
dustry and the development OF the resources OF the
country" &C. Under this act Mr.. David A. Wells
was appointed Special Commissioner OF the Revenue.
With what energy and ability he has undertaken the
very difficult duties devolved upon him has been
mitted to Congress That which accompanies, or
viii soon follow this communication, viii prove
more fully than those which have preceded 1t have
he Is engaged and the judicious labor which he L.
upon them. The facts which he presents
and the recommendations based upon them, are
titled TO the most careful consideration OF Congress-
These reports oil the Commissioner are complete
that they relieve the Secretary from discussing elabo
Tately the questions OF which they treat. HIS re-
marks. therefore, upon the internal revenues and
the tariff will be general and brief
The following Is statement OF receipts from inter-
nal revenues for the last three fiscal years.
For the year ending June 30, 1866. 1903 go S13
For the year ending June 80 1851. 266o27, 5ss
Enr Inn paa apt nm al rku
IL thus appears that the internal receipts
for the year ending June so 1867. fell below the
ceipts for the year ending June so, 1885, $43 25
and that the receipts for the year ending June 30,
1861 fell short OF the receipts for 1867 S7493g,9is
The receipts for the first four months OF the present
fiscal year were S4s,I3634S. ii the receipts for these
months are an index OF those for the remaining eight
the receipts for the present fiscal year viii be
This large reduction OF internal revenue receipts Ia
attributable both 10 inefficient collections and 10
reduction OF taxes IL Is quite obvious that the re-
ceipts from customs cannot b maintained without
an Increase OF exports or OF our foreign debt. IL
the receipts from customs should be diminished,
even with large reduction Of the expenses oil the
government, our internal revenues must necessarily
increased. The rst thing to be done introduce
economy into all branches Of the pnoc service, notify
reduced appropriations to be made good by s'den-
cheney bills but by putting stop 10 all unnecessary
upon tho Treasury. There is no depart
ment OF the government which Is conducted with
proper economy. The habits formed during the var
are still strong, and Will only yield 70 the requ re.
Inents OF inexorablc law. The average expenses OF
exceed $40, 000, 900 per annum. Those Of the War
Department., after the bountes are paid, should he
brought down to 435 900, and those OF the Navy
TO s2o09o000. The OUTLAWS for pensions and Ind ans
cannot for some years be considerably reduced; but
they can doubtless be brought within $4,000, 700.
The interest on the public debt when the whole
debt snail he funded at average rate Of interest OF
five per cent VIII amount to $4,000 0OO which Will
be reduced with the annual reduction Of the PRINCIPAL
When the Internal Revenue and 1ariff laws sail
be revised 40 IA TO be made 10 harmonic with ech
other 1t IS supposed that 30o,o00ooo annual be
allgAl yyfth
taxation. How much shall be raised from each AN
be gelerwined Yhep the whole subject OF revenue
the light shed upon 1t by Commissioner Wells In his
exhaustive report Of the present year. The Secrta-
~ does not doubt however, that the best interests
OF the country viii be eubserved by reduction othe
tariff and an increase OF excise duties.
According To this estimate tie account VOID
stand M follows
Receipts from customs and internal rev.
NouV.up,uuV
Expenditures for the civil service. 4o,O1,00o
Expenditures by the War Department. 100000
Expenditures by the Navy Department. 20,o0G000
Ia penditures for pensions and lndans. 30,C0LQ00