The New York herald., 1868-03-18

dollars for every thousand dollars, worth sold In
assessor OF internal revenue the amount sold in ex-
OF ten thousand dollars which the tax shall
be assessed and paid monthly the same as other
taxes.
Mr.. MORRILL,, lrep., OF Vt, onered amendments,
the effect OF which would be to leave the tax on all
sugars, the product OF sugar cane, exemptlng only
those produced from sorghum OF gnphee.
the CHAIK decided the amendment out OF order at
this time
Mr.. MORRILL,. while he considered the prescntment
OF the Finance Committee fair one, was not con-
ient that under this bill the receipts would equal
the expenditure. Nobody believed that they would
derive fifty millions from whlskey II was q tax that
would not DO collected until men became as pure as
angels II they could enforce the collection Of the
tax, then the production OF the article would at
be stopped, SO that II was absurd to suppose they
could collect any such amount. He argued nom
information received from the Internal Revenue De-
parment, that The estimate OF receipts from incomes
was far too high, raising the amount entitled to
exemption nom $500 to $1,000 Cut or half of
those that would pay any income tax, and large
reduction would result from the decrease OF the tax
or income over $1,000 from ten per cent to five The
general depression Of business, too, would largely
reduce the amount OF income. 1t would be disas-
trous to pass bill which would not bear critical
examination. Our creditors at home and abroad
were lynX-eyed, and would not be deceived. 1t
would be known throughout the world II they COM
mitted the mistake OF passing bill reducing taxa
decreased. 1t had been found that whenever bin
proposing increased expenditures came up here
enough were always ready to pass it. and to suppose
that an appropriation bill from the House would pass
the Senate without an addition OF thirty or forty
millions Of dollars was the subimity ofhumbuggery.
hope that the proposed bill from the House would
be received here and acted upon In season to go
into effect before September. He hoped the bill
would be passed upon at the earliest moment, when
he hoped his amendment would be adopted. Fit was
not the duty on foreign sugars would be reduced as
q matter Of course.
Mr.. STEWART rep.) OF Nevada, thanked the Finance
Committee for so boldly starting the path OF re-
form. He believed the proper policy was to reduce
the taxes far as possible and consistent with the
expenses of the government and thus require the
greatest efficiency III the collection OF the rev.
enue In order to meet them
Mr.. VAN WINKLE, (rep.) OF w. Va, offered
an amendment providing for reduction OF
one-half on the tax fixed on the products
said 1t was invidious to single out this article
for taxation; 1t was not luxury nor article that
enc9uraged t.r mmoay rme tax Was was @ iSar oa nun n,
production-as high as that on whiskey. He thought
In Justice reduction OF fifty per cent was proper
ment, holding that there was no reason for subject
ing petroleum to taxation that did not belong to any
other manufacture.
Mr. MORRILL,, OF vt, opposed the amendment, on
the ground that no article could bear tax better
than refined petroleum.
slider that petroleum could not bear the tax now i'm
posed when 1t was largely produced In England
and on the Continent shaes and other articles had
been manufactured into oil and used as substitute
for petroleum, so that the expectation was very
much decreased. He argued that taxation should
possible, as in England. He had no doubt that with
an honest administration high tax could be COL
lected on whiskey.
Mr. SHERMAN opposed the amendment Petro-
eum had driven out all articles in competition with
it, whether for light or for other purposes with the
present taX and, therefore, 1t could bear the tax
Mr. BUCKAIEw, (dem.) of Pa, said that In imposing
taxes their chief consideration should be to exempt,
first articles OF necessity, and among them peiro.
moneyed interests OF the country must rest in the
future.
The amendment of Mr.. Van Wrinkle was agreed to
Dv Do 20.
Mr. MORRILL,, OF vt, offered an amendment pro-
vding "that nothing herein contained shall be con-
strued as the repeal OF any tax upon machinery or
other articles which have been or may be delivered
on contracts made with the United States prior to
It would prevent the relief from tax of private parties
who had contracts to the extent Of fifty millions.
Mr.. SHERMAN said these contractors had delivered
this machinery to the United States under existing
laws, and this would simply deduct five per cent
from the contract price. They had purchased mate
rias according to the contract and the amendment
Mr.. MORRILL, said the amendment merely provided
against the repeal OF any tax to which such parties
were already subject. He trusted they would not be
paid any bonus.
Mr. EEssEsDES, rsp Of Me- supposed these par,
t their being relieved nom 1T the tax-nothing more,
watch would be mere waste Of the public money.
to give the contractors two and half per cent.
Mr.. HOWARD, trep.) OF Mich, asked whether the
same rule ought not to apply to all executory con-
Mr.. MORRILL, said this was as far as Congress had
gone or probably would go.
tincti0n.
Mr.. FRELTNGHUYsES, trep.) Of n. J.. supposed all
contracts were made subject to the law Of the land
If the United States made a contract affected by o
subsequent law 1t was nothing more than occurred
with individuals.
After further debate the amendment was agreed to.
Mr. FEssESDEN offered an amendment providing
that after the passage OF this act there shall be
drawback allowed equal In amount to the import
a other
building and equipment Of sailing vessels. He said
1t was a copy OF an amendment adopted by the Sem
% Though ugh not not exactly M eermane name It reierred 70
the general object OF the bill-namely, to relieve
the suffering industry OF the countryside pursuits
that not only beneficial TO individuals, but to
the country-among the most important OF which
was navigation. Everybody knew that the naviga-
ship building The ship yards OF his own State
tMainel In common with those OF many other States
were, a, as general rule; entirely deserted deserted
OF that skilled labor in ship building
which has heretofore been regarded as so important
n gng g yasae 70 TINS Is ,Sn ~ nrce e o
materials they could not compete with their provin-
cial neighbors, who also had cheaper labor Nothing
could be greater injury to the country than the de-
struction OF the ship building interests.
Mr. SHERMAN said the difficulty was that this was
proposition TO increase the expense, as an amend
ment to bill proposing to reduce 1t. The shipping
interests got the benefit OF this bi as other interests
did. This was simply bounty to shipbuilders taken
from Tie TcVeuue III WOuiu ulcTetiSe DurueUS Vi
other interests This relief, In order to relieve the
shipping interests to any extent, must be very
large. The same depression existed all over the world
and this would be relieved by reduction OF taxes
and q resumption OF specie payments. He trusted
the bill would be kept from all extraneous matter
so that 1t could be passed by the first OF April and
thus relieve the distress existing In the country.
Mr.. FEssENDEN said that this species OF "bounty"
as the Senator singularly called IT, was principle
that had existed since the formation OF the govern
ment-givng drawback Of the duties on
certain manufacturing interest. But was
there any pursuit In the country that
had been more injured than this of shpbuiidiug.
True other industries were languishing, and thus,
like them, suffered from general causes This suf-
fered from particular cause also. England and the
Colonies gave drawback In shpbuilding materials.
Crossing river In his state you came to country
where there was no such taxation and where labor
was cheaper why not give them relief In regard
to revenue the Senator thought nothing OF
striking from the internal tax several mil
lions, and yet objected to the return OF q
tax Of four dollars ton, or o little more.
II the present burden upon that industry could be
moved to place Il on Its former prosperous foot
ing was 1t not worth whilef Doubtless the effect