The Hawaiian gazette., 1869-05-05

imposed upon all manufactures and pro-
ductions set forth in that Act. To coun-
teract and balance such temporary disad-
vantage to home manufacturers, as, it was
thought, might result from the imposition
of these taxes before the same could be
drawn back, in the prices of the taxed
commodities when sold, so-called corre-
spending increase of duties was demanded
and obtained, though. in point Of fact. this
increase was out of all correspondence
with the additional internal revenue taxes
imposed. exceeding them, in numerous
instances, many fold.
Subsequently. during the winter of 1867,
a movement for the repeal of these in
ternal revenue taxes developed itself, and
notwithstanding the objections interposed
by the Secretary of the Treasury to this
proposed lowering of the revenues in his
letter of March Is, 1868, an Act was
passed on the 3lst of March, 1868, which
effected the repeal of nearly all the taxes
upon manufactures and productions. This
important Act, together with some minor
ones that preceded and followed it. effected
a reduction in the revenues of nearly one
hundred million dollars. This reduction
was not followed by any corresponding re-
duction of the duties on imported mer-
chandise, nor was it followed by fall in
the market prices of the merchandise from
which these taxes had been removed so
that it may be concluded. without fear of
contradiction, that nearly the whole amount
of which the Government was thus de-
tal lirant hnnntx, for ho
benefit of the parties interested. Indeed,
so little was a corresponding reduction in
the tariff entertained, that shortly after
wards bill was introduced into the House
of Representatives to still further increase
the rates of duties, which bill is still pend
ing legislative action.
At the present time, further project
is mooted of abolishing the income tax.
If this tax be abolished, it is respectfully
suggested that there may be reason to an
ticipate movement fer the entire aboli-
tion of the system Of internal revenue
taxes Towards this end, the odium
brought upon the collection of these taxes
by the influence of internal revenue CON-
binations, goes far to support the claims
Of the tariff combinations, and when it is
called to mind that, as a general thing,
taxes are unpopular in proportion as they
are directly levied, the suggestions here
advanced will not appear to be without
foundation This conclusion, taken in
connection with the present heavy ex-
penditure for the public service, embrac-
ing as it does one hundred and thirty
millions alone for interest on the public
debt, points to period when the demands
of the tariff combinations will be still
further increased, and the present high
tariff sought to be superseded by a still
higher one, with what results upon the
discipline of the service, the yield of the
revenue, upon public morality, and the
industrial interests of the conutry, will
readily be foreseen.
The insufficiency of the impost accounts
in omitting to furnish the quantities of,
and duties on each separate article taxed
dd rdLOrens. seemed to have attracted the
attention of Mr.. Secretary Fessenden,
who, in 1864, issued a regulation calling
for the rendition of an account from col
lectors, which should furnish the same de-
tails relative to the importation of articles
taxed ad rdLOren, as were furnished of
articles taxed specifically, and moreover
requiring the sworn values of the latter Ia
matter that had previously been omitted
to be furnished also. In obedience to this
requsition, the accounts were prepared
and forwarded by the collectors, but they
were never compiled in the department.
Through this neglect, the collectors gradu-
ally ceased to render them, and when the
Bureau of Statistics was first organized,
lin 1861 not above four or five customs
collectors were found to have continued
the practice of rendering them to the de-
partment, and with these few accounts
nothing was ever done beyond filing them
away. 1t was not known what accounts
they were, or why they were sent, and no
inquiry seemed to have been made in the
matter. As for the regulation of 1864, it
seemed to have been entirely forgotten.
The necessity of possessing an account Of
this character induced the Director to make
such inquiries as afterwards resulted in a
knowledge of the neglected situation, and
as eventually led to its enforcement.
The first fruit of the regulation of 1864
was, consequently, the Home Consumption
and Impost account of 1867, which had
been but lately completed. Without the
aid of this account of 1867, the conclusions
reached in this report would hardy have
suggested themselves, so much are they
due to that clear view of the subject
afforded by careful study of the latter ac-
count, in connection with the Impost ae-
aornts ~ tho praoadino vaarS
1t is hoped, that under 10 circumstances,
will this important account be permitted
to ever again fail to reach the public.
The tables for the period, 1862 to 1866,
inclusive. will be found in the following
publications:
Impost account, ls62-Com. and Nav,
l63, p. 346.
Impost account, 1868 Monthly report,
No. 10, p. IT.
Impost account, lS64-Com. and Nav,
1866, p. 1893.
Impost account, Monthly report,
No. 4, p. 6.
Impost account, l665-Com. and Nav,
1867, part 2, p. 354.
Home consumption and impost account,
1S67-herewith.
An examination will now be made Of
the statistics Of protected articles, select
ing for this purpose the leading articles OF
iron and steel manufacture.
We omit the tables on this point, as
they do not affect US in this country, and
as matters of illustration, will not be need
ed by our readers, in view Of the clearness
of the text.
IL has oncurrad that the dacraasa in the