The New York herald., 1868-01-08

dkcn Of high prices for both labor and commoditss
subseQusnt and continued nvsstgatons have Afforded
sions; but at the sams must BE- apparent 70 even
the most casual observer thai things have not remansA
During the pas. year the supply or labor disturbed BY
the has aad more returned TO IL accustomed
.vooaOns and prices IN many departments q o. ndu:tn
quists, have gradually rscsasd With cheaper food
supplies. consequent upon more abundant crop o.
cereals than really harvested this reduction would
have been even more decided than at present. AZ
the scale Of wages reported generally paid for min
x "a: q s'o
caliy for the manufaeturs Of textiles has bsen very
conslderably reduced. On the other hand tho fail
been even more marked and significant Thus,
for example, the fall In the price OF "ndding" cotton
per pound In September 1885, to sixteen cents In Noysm
ber 1857 OF cotton fabrics during the past year. from
me from as to IS Per cent Or 10 lower prces in god
than tho average in any one year since 1871 OF ordinary
woslsna domestic from 70 70 80 per cent forssn from
cent ane 20 cent; OF coffee (good Rio II per cent?
Of tea !oolong ~ per cent; Of copper gngo 22 per
paper ~ TO 25 pos cent and Of anthracite coal at tide
vater from sso3 per ton s October 1893, to IS 80 IN
Rsviswingihe events Of the past year. IL would seem
that far from there having been any adverse nau-
currency, the tsndsncy in truth. has bssn entirely in
the opposite direction for cannot be doubted that
fail Of prices esavalsnt on the whole business Of the
leot large addition to the machinery Of exchange
before existing wha. the practical iscsass Of the
rsncy elected indirectly In this manner has amounted
to cannot be definitely stated but in opinion OF
Commissioners t has no. bsen less. during the last
The true theory OF legislation under tho present
condition OF affairs would to be- not to suspend
or delay reoovery-psintui though II may bs-rrom ab.
normal prices ever production by further innaton
but that relief should be afforded to the greatest sxent
possible BY the removal Of taxes which impede produc.
cuhr Arutt Aeuuv
profits and were therefore, TO certain extent justified
but which with the present reduction Of values fall
| The Commissioners aso would call atrsution In this
connection TO the fact that while the material abste.
particular articles or classes 0f articles made by the
Thirty ninth Congress has proved OF substantial benefit
and has brought to the revenue system something of
simphcation, Jet the relief experienced BY the whole
country has not been proportoned TO the amount OF
revenue abandoned, or to what tho relief probably
would have been had equivalent reduction been made
in the form OF q uniform percentage all the called
industrial taxes The reason for this undoubtedly is
that the continued imposition Of taxes on
as pretext " cover for refusing to mske
abatement IN the prices Of those which wore
this instances could be referred to In which the
reduction OF taxation ON particular arnces Was almost
Immediately followed By enhancement OF their price,
ana Of many IN which the price renamed nearly sta
tonary.
1t cannot however, bs now doubted that removal
Of all the internal taxes which materially impede pro-
ductoD, WITH possibly slight modca ions Of, the
tariff, VIII be followed by an Immediate and great
vivN OF domestic industry nasmuch ~ evidence OF
the most conclusive character has been presented the
Comm ssoner showing tnas the decision respecting the
continuance or removal q taxes certain leading
branches Of industry will of itself alone detcrm ne
whether manufacturing at c1rrent prices shall be carried
on ~ an actual los5, or with small margin or profit
DISTILLED srIRrTs.
or the various available Of internal revenue
that OF distilled spirits ranks nrst in importance The
attempt, however, thus far 70 collect any legitimate
revenue from this source has ID we'll known proved
most lamentabe failure, and for the following OBVIOUS
10 constitute in itself great temptation frxud
that average human nature, 1t exists In the United
which the officers have been selected to col.
lect she tax and supervise the manufacture has thus
city the nrsi, only aAd essential qualifications for
The commissioner does not propose to sn.er into any
argument 70 the truth OF these statements for
the experiences OF the last two years has made then
it were ssevident; but he would attention briefly
70 what may be regarded y the positive facts Of the
Tho amount Of distilled spirits produced in the Unltsd
10 one nunasss mo0s or ssSss psr
annum. After that year the production greatly do.
cined nrs BY reason Of the substitution Of the cheaper
Illuminating purposes; and secondly. on account Of
the tax which, By greatly enhancing the price Of aco
hol, largely diminished It's uses for industrial, SCI
enti1c and medicinal purposes The imposition
Of the tax, IN the first instance probably d.
cheap spirits for drinking; but this influence was
enly Temporary In in duration, and ali the evidence
drinking purposes 10 now greater than at any former
period
States theoretically available ior and
undoubtedly about nay millions Of proof gallons per
annum; and although statements implying larger
nua production ana consumption are continually put
FORTH made 70 extent the basis OF financial
reasoning they are supported BY NO evidence, and
entirely un worthy OF ersdsnce.
The largest amount Of revenue collected in any one
year. since the imposition Of the present tar Of two dol
lars has never been IN excess Of thirty millions OF
n n md In
or, In other words the government has thus far
essded In collecting the tax somewhat less than
gallon OF proof spirits 70 every three gallons that have
Tns tax thus evaded has not, however, through the
sTtsn to the benefit OF the cons1msr which ephance-
men MOI an average equal 10 the cost Of manufac-
sSIe, p.us .ne sovmsn. a, na, > eeen ,a sumesnt 70
of at least thirty millions Of dollars; which sum,
over may he rkcn as the measure OF the present induce
evade and defeat the law Under these clrcum.
tho practical question which presents itscf IL
this: What oe done TO draw from source which all
agreed should contribute largely to the expenses
OF the government greater amount OF revenue,
IA the failure to collect the revenue from distilled
spiriis due In small part to the fraudu
completely and incompetsncy OF the revenue officials Is
fact that cannot bc questioned the first step there
FORE In the way or reform would seem to be TO provide
for ihe immediate enactment OF . new and different
administrative system. Inc success of such q meas
urs. however, judging from the little favor given
In the Forty ninth Congress TO the so-caed ssCivil
Service BILL" is, at least, doubtful and in the
form under consideration oud be ordered by Con-
gress considerable time would inevitably elapss
before tho new system could be made effective.
But even accepfing the question Of reform settled
II Is certain, In the opinion or the Commissioner that
It's influence would only 10 degree compass tho end do
sired. Tho states OF Central Europe with dense
population and thoroughly organized police have also
provided civil service administration which insures
the highest degree OF integrity and capacity in its
ofcors and yet In Austria, Prussia Belgium, Holland
and Tie smaller German states tho idea OF collecting
any large amount revenue from high tax on dis
ted sprts has been practically abandoned la France,
furthermore, the recent adyancement OF the tax
ia n N af0aI atv mt
gallon has brought considerable increase Of revenue
and tue measure, financially is reported to the Comms.
sioner practical failure In Russia, the government
secures largs enuo from spirits only by monopoiz-
ng the business Of dstiiug all domestic liquors and