The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1868-03-23
The National Finances.
AN IMPORTANT LETTER FROM SECRETARY McUL-
IoCH.

AN IMPORTANT LETTER FROM SECKEIAhf IL oohr
IoCH.
Secretary McCulloch has written the follow
ing letter to the Senate Finance committee,
regarding the bill for the wholesale repeal OF
he internal tax on manufactures:
Tpr,supy DEPARTMENT, March 16 1865
Dear Sir: The abolition Of the duty on cotton
will reduce the revenues some s2O,0sO,UUu.
The bill which has recently passed the House,
and is now before the Senate, abolishlng after
the first of May next the taxes on g.
and o5, act of June, 80, 1864, and enumerated
in Table III. in the report of the commissioner
Of internal revenue for 1867, pages 335, 1856 and
337 With certain exceptions, Will, 1t has been
estimated, effect reduction OF some SOU, ,000,-
ono on the basis of last years revenues. 1t
must also be borne in mind that this large re-
duction of the revenues from , the internal IN
dnstries OF the country will have the effect of
redncinp the general level of prices throughout
the country, and thus tend to interrupt and to
lessen importations, and therefore to diminish
the customs revenEes.
A considerable portion of the large revenues
from customs received during the two last
fiscal wears, and which are still maintained, are
due in no inconsiderable extent to the fact that
the high prices in this country have made our
market a desirable one for the sale Of foreign
productions. So great reduction Of prices as
will be effected by the contemplated legisla-
finn. cannot. repeat, but have q tendency to
reduce importations, and consequently to i'm
pair the revenue from customs.
Should the bill referred to become low,
think it NAV be fairly estimated that the total
revenues for the next fiscal year vii fall from O
hundred to hundred and twenty millions be-
low the estimates made in my last annual re-
port. It is exceedingly desirable that taxes
should be reduced, and should hail with pleas
ure the proposed reduction if I felt assured
that it would be accompanied with CORES
ponding reduction of expenditures. am free
to say that I am greatly apprehensiye that
such reduction Of expenditures will not be
made, and that the revenues OF the country
for the next fiscal year, if the bill now before
the Senate or in the hands of your committee
should become a law, will be insufficient to
meet the interest on the public debt and the
current expenses Of the government.
Iearnestly ask that the finance committee
will give this subject careful consideration in
all its bearings before reporting favorably upon
the bill referred to. Nothing could be more
disastrous to the credit Of the government at
the present time than such reduction of taxes
as would create necessity for an increase of
| the public debt.
Very truly, yours, d. McCULLOCH.
Secretary of the Treasury
P. S.-Will not the effect Of the bill under
consideration be to relieve all cotton f1om tax
| alton?
The bill to which Mr.. McCulloch above OBJ
jects, it will be seen, passed the Senate on
Thursday, substantially in the form in which
it came from the House. 1t is great sop to
! eastern manufacturers. If such reduction Of