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

i
public mind that IL would be only temporary and
| that tax IN some degree equivalent u that which
was removed would oil necessity soon be resorted to-
II 49, perhaps for this reason that this measure has
! Jailed TO give relief to the public by dimnuton OF
prices and has benefited manufacturers rather tnan
/ consumers. The frequent and important changes
which have been made in the Internal Revenue laws.
the nth which exemptions from taxation have
been Obtained and the Suddenness with which taxes
have been greatly augmented reduced, have const
tuted one OF the greatest evl, OF the system. sudden
changes the revenue laws not only destructive
| Of all business CALCULATIONS, but they excite,
unreasonably, feeling OF discomfort and sense Of
Injustice among the people moss nnitvoable 10 an
that in new and growing country iAe ours, modii
cations OF the taxes viii he frequently necessary,
some definite policy should at once be naugurated III
regard to internal revenues, the general princi
pies OF which should be regarded as finally estab-
| ished.
Assuming that the receipts from customs win be
reduced by . reduction OF duties, or by the effects
under Tie preses tariff and that Consequently there
must be an increase Of internal taxes there are
three sources VI revenue which are likely 10 be con-
sidered.
Fus--An increase Of ltaxes upon distilled spirits.
The idea oil deriving the bulk OF the revenue from
this article IL very popular One and even our I'M
fortunate experience has only partially convinced
the public OF ITS inpossibity. The. late exorbltanE
tax on distilled spriIs intended perhaps not merely
as revenue measure, but as an encouragement to
temperance, proved to be the most demoralizing tax
ever imposed by Congress, corrupting Doth the man
uacturer5 and the revenue officers and IainiiIar-
ling the people with ssupcndOus violations OF the
law. The restoration OF IT, or any considerable in
or the frauds which have brought the internal reye-
nue. system into such utter disgrace.
SecOnd-A restoration OF the tax on manufactures
abolished in March last.
The objections restoration OF this tax are that
1t would Indicate vacllation ON the part OF Congress-
and tnat thus tax principally on account OF nulner
Gus exemptions, was partial and unjust. IL is also
apparent that II restored 1t would all to be perma
nent by reason OF the persistent and united hos
tity OF class OF citizens influential and powerful
and whose influence ana power are rapidly increas-
1y.i,d.-An increased and uniform tax on sales;
and this the Secretary respectfully recommends.
Under the present law wholesale and retail dealers
in goods wares and merchandise OF foreign or do
mestic production wholesale and retail dealers in
liquors and dealers in tobacco subject Il STINT
lar but unequal tax upon sales Tnls Inequality
should be removed ana tax LEVIED upon all sales
sufficient with the revenues from other sources 10
meet the wants OF the government. The reasons in
favor oil tax upon sales thar 1t could be levied
generally throughout the country anu would be
liable 70 The imputati9n o. class legslatlon that II
pressively as other taxes upon individuals
lions and that no depression OF one branch OF in
dustry which did not njur0usiy ahect the business
OF the entire country could greatly lessen its pro-
ductivenesS.
AS has been already stated the receipts from cns-
toms for the fiscal year ending June 80, 1866 were
S1.9046,65i; for the year ending June 30, 1857,
S17641S10, and for the last fiscal year, $l64 $780,
These figures show that the tarif has produced large
revenues, although 1t Is IN no Just sense revenue
tart. In this respect IT has exceeded The expecta-
tons OF Its friends, IT. indeed 1t has not disapl
them. 1t has not checked lmpOrtatlons, aud CON-
plant is made that It mas not given the anticipated
l
was not skifuy framed 20 this end, but because an
inflated currency-the effect OF which upon lmporta-
tons was not fully .comprehended- In a meas
ure defeated Its object. IL has advanced the prices
Of dutable articles ana, by adding to the cost OF v
ing has been oppressive to consumers, without be-
lug or decided benefit to those Industries whose
interest Is Is regarded us having been prepared.
ms last report the Secretary recommended the ex-
tension OF specific duties, but did not recommend
complete revision of the tariff on the ground that
this work could not be intelligently done as
long business was subject to constant de-
" n nlAh
same difficulty still exists but as decided ac-
tol upon the subject OF the currency ought rot
to he longer postponed, the present may not be an
unfavorabe tme for a thorough examination OF the
tariff Ii rs obvious that revision OF 1t Is required,
only TO relieve 1t or ncongruites and Obscurity
and TO harnonize II with excise taxes and with our
agricultural and commercial interests but also to
adapt 10 the very decided change which must take
place III the business OF the country upon the re-
htOration OF the specie standard. Large revenues
are derived from customs because 4 redundant
currency produces extravaganza, which stimu
imporlations. II the currency were convertible
and business were regular and healthy the tariff
stances prohibltoIy. Indeed Of some valuable arti-
Giles 1t Is prohibitoiy already
There VIII be IN the future as there have been
in the pas, widely different opinions upon this long
vexed ana very Important subject, but the indca.
tons are decided that the lnofe en ghtened senti.
ment OF the country demands that che tariff shall
hereafter be tariff sor revenue and not for prOtec
tion and that the revenues to be derived from 1t
shall be larger tnan, IN connection with those
coivcd nom other sources, VIII be required for the
economical administration of the govern
and the gradual extingushment OF the public
debt. While the country Is not at present, and may
not be for many years TO come prepared for the ab
rogaton Of all restrictions upon foreign commerce,
IL IS unquestonaby prepared Tor u revenue tarin.
The public debt Is an incumbrance upon the pro-
perry OF the nation and the taxes the necessity for
which 1t creates by whatever mode and from what
sources collected are at last charge upon the
consumers. taxes should not, therefore, be In
creased nor viii the taxpayers permit them TO be
permanently increased for the benehs OF any inter-
npsii m N
points, the necessities OF the government viii be
such for many years that large revenues must be de-
rived from CUSTOMS so that strictly revenue tariff
must incidentally benefit our home manufactures
According to the estimate msde by the Secretary
annual revenue OF three hundred millions will be re-
auired to meet the necessary demands upon the
Treasury and for satisfactory reduction OF the pub
lie debt. How much OF this amount shall be de-
rived from customs 1t Will be for Congress to de-
tcrmine. In examining this difficult ques.
ton, the magnitude OF our foreign debt
lis increase but Of rapidly reducing it, must be Kept
steadily IN view. II may be necessary that large
portion Of our bonds now held in Europe be taken
up with bonds bearing lower rate of interest pay
able In some European city, IN order that they may
ne Sss e :; t os betbep tn e ~
or not IL is Of the last importance that our tax laws,
and especially the tariff, should be so framed as TO
encourage exports and enlarge our commerce with
foreign nations that balances may be In our favor
aud the interest and In due time the principal Of
tons Many OF the Investigations OF the Revenue
Commissioner have been made with the view OF
furnishing congress Win the dito necessary LOT d
thorough examination and wise determination of
this most important question, and IL Is fortunate that
the subsistence OF political excitement removes many
OF the difficulties heretofore In the way Of an impair
tial consideration OF II.
The public debt on the 1st day OF November, 1867,
amounted to $2,49l, 5os, l5o. and consisted Of the
following items:-
Debt bearing coin interest 49, 110,991
Debt bearing currency interest. 420, $40
Matured debt not presented for par
ment. NEUTRALITY-SUSPICIOUS.. 1s.237.5ss
Debt bearing no interest. ............ 402, 3S5617
Total 81, 825 5O2 s4s
Casn In the Treasury ................ 1885, Dos. 39s
Amount Of debt less cash in the Trea-
S@,fsi'oussoV
ON the first day OF November 1858, IL amounted to
f252T 552 and consisted OF the following items:
Debt bearing coin interest. 0T bI1, $50
Debt hearing currency interest IIs5l9,0o0
Matured debt not presented Tor pay
m.nt'. ........................... a753 723
int real