New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1868-06-05
THE WHISKY TAX.


The House of Representatives is wisely and
worthily engaged in the consideration OF Dill
repOrted from its Committee OF ways ana
Means which cOntemplates complete revision
of our Internal Revenue system and the con-
solidation into one of all the acts and provis-
ions of acts relating to Internal Revenue. This
is an arduous task, but one that should not be
postponed The Government is systematically
defrauded of not less than One Hundred Mil
lions of Internal Revenue honestly due it and
needed by it. That amount, vigorously applied
to the purchase and extinction of our Public
Debt, would enable the Treasury to commence
forthwith the funding of our Five-Twentles on
which the right of redemption has already ac-
crued into Ten Orties, thereby saving at least
the difference between five and six per cent.
interest. Before the ten years shall have ex-
PRED these Ten-Forties may easily be funded
again in -Four per cent Zone per
cent. interest, or $40 on each $1,000
bond, payable at the expiration of each
successive quarter) The saving of interest thus
effected would of itself soon pay off the entire
| Debt. But we cannot begin to reduce the rate
| of interest till we shall have demonstrated, /.
! That we will honestly pay what we honestly
owe; g. That we will pay it promptly and GER
tainly 8. That we will steadily reduce the prln-
! cipal of our Debt. The moment it shall have
| been conclusiyely settled that some Two to FIVE
| Millions of principal of our Debt will hence
! forth be redeemed and Cancelled each month,
our bonds will appreciate in the market. Inc
certainty that they are to grow scarcer and
scarcer will impel general scramble to clutch
and hold them in expectation of an advance In
price. Nothing but the constant multiplication
| of Five Twenties through the redemption there
in of our Seven hirties has kept down the
price of the former, which ought to be worth
gold par on every exchange to-day. Our loan
acts pledce us to pay annually not only the in
terest but at least one per cent of the prlnci-
nal of our funded Debt in coin. Let us do bet
ter than this, until no obligation of the United
States drawing five per cent. gold interest is
worth less than its face in CON-
But what of the Whisky TaxY
Gen. Schencks speech seems to infer from
the fact that it has never been fully collected,
and is now almost wholly evaded, that it can
not be collected unless reduced below one dol
lar per gallon. The inference seems to us I'M
warranted. If the present Commissioner cannot
collect it, we think he should give way TO one
who could. We firmly believe that if Gen.
Butler (fOr example) were tomorrow made
Commissioner, and should agree to accept the
place, either that tax would be paid, or Whisky
would cease to be manufactured. And we do
not believe he would require or need any
power which the present laws do not give.
We are not at all tenacious as to the reten-
ton of the present tax. We believe g was
originally quite too high, and was adopted
under the manipulation of well-known specu-
lators in legislation and lobbying who had
Y bought up most of the liquor in market and
expected to realize vast gains from the en-
: hancement of price certain to follow an in
crease of the duty from 20 cents to 81 PEI
gallon But for these SPECTATORS power ovel
Congress, we are confident that the reasonable
f and moderate proposal that fifty cents per gal
lon should be assessed on the Whisky in exist
ence when the 81 was imposed would have
prevailed. The Government was in desperate
, need; the Whisky on hand was enhanced in
price at least 81 per gallon by the 50 tax
then why should not the Treasury have had
its fair share of the gain Why, but because
the Whisky Ring then formed was too strong
for justice and the public weal7
If the Whisky Tax must be reduced we sug-
gest 81 as the proper rate ; and then let there
be no mistake as to its rigorous collection. II
CAN be collected; if A cannot do the job, LET
us try b if he also fails, then resort to C.
Augers that wO MT bore" may still be use
full in some capacity, but not as augers. We
suggest a clause in the new Revenue act stip-
ulating that, whenever the price of Whisky in
this market shall fall below the rate of duty
with at least 2j cents per gallon added as the
lowest possible cost of production, the Com
missioner shall resign-the same rule to apply
at a months end to his successor. Rely on it,
such a clause would soon bring to hand an
augcr that WOuld bore and thenceforth the
buying of Senators by Whisky Rings would
become one of the Lost Arts.