The New York herald., 1869-01-07
GENERAL EXPERIENCES.

Finally, Mr.. Wells c0ncluHeS.-
the regate wealth or tile country ID increasing,
probably as rapidly rs at any iorner period; ye II
does no. FOL ow that there ts the same increase IN
general prosperity. The iaborer, especially one with
aarge lamIv is not rs prosperous as 1861. rnere
Is an inequality IA distribution. owing largely To
artiiiciai causes. FOR example, among the working
classes un married operatives gam, While those who
support families lose. Hence deposits In savings
banks increase, while marriage Is discouraged, aud
the Iorced emp poynent OF young chiidrea Is made
Thls IS an inevitable result OF a nuctuating mea-
sure OF value VIII lnconvertole paper moaey. 10
is clear prtof that the use OF such money In olives
most oppressive tax, which falls heaviest upon the
laboier and llghtest upon the owner oi capita. An
tagonism Is produced where none ought 70 exist tne
capitalist Is forced TO charge an additional profit for
the increased risk, and the consumer oI tne com
S e M Sa Daper .
and the facts prove It. The rich become richer and
the poor poorer.
But second only to the influence OF the currency In
this direction IL that OF taxation. III this county
we nave three snds Of mmra1ation under Ins in
and local taxation.
NATIONAL TAXATION UNDER THE INrERAL REVENUE.
At the cose OF the war the internal revenue taxes
had been extended enormously and were almost
universal. Not only manufacturers were taxed, bur
generally every constituent wnicn entered into the
composition OF them. This was one OF the wsest
and most successful measures OF the war and ougat
to have been adopted earlier. The revenue actually
collected from the Inauguration OF the system in
1868 to the 3Oth or June, 1868, has amounted to
eleven hundred millions OF dollars. At hrst, owing
TO the enormous consumption OF the army aud the
withdrawal OF labor from other occupations. these
taxes were not to most producers at all oppressive,
but often increased the price more than the cost to
the manufacturer, and go added to his profits.
But after the war prices fell. and 1t became ev-
dent that system which violated every principle Of
taxation witch brought wItn it constant oicial in
ons,tions. which proyoEed 10 concealmrnt evaslon
and faisehood; when, by Implications and enhance
ment OF profits, took far more from the pockets OF
the people than was received into the treasury
could not exist much longer among lree people
than necessity enforced It,
The different reforms which have been made
although they abandon at least S170o0 100000 OF an
nual revenue, have done no. lasting harm to the ma
tional revenues This great relief from taxation has
both stimulated ana STRENGTHENED the productive
interests OF the country, and thus the period within
which the national debt can be discharged has been
shortened rather Than pr0tracted.
THE INTERNAL REVENUE SYSTEM A GOOD ONE.
Mr. Wells regards our present system as very sim
lar TO that which experience has approved In Great
especially the repeal OF the taxes now levied upon
telegraph and express companies, upon the gross
receipts OF railroads, steamboats, and other common
carriers for the transportation OF passengers and the
percentage taxes on the sales OF merchandise; the
gross receipts from all of which is less than onehaf
the annual expenditures during the last two fiscal
years for the equalization Of Dounties. When this
has been done our entire internal revenue system
win be, ne thinks, wholly subordinate 70 the more
important end Of Creating national wealth.
PRICES HAVE NOT FALLEN ENOUGH.
It Is noticed with regret that thus far the abate-
duction 81 taxes has not been what the large amount
OF revenue abandoned would warrant Several arti-
cles, as pig iron, manufactured lumber and salt,
since the removal OF taxation have actually ad-
vanced. while upon others, as agricultural impe-
ments, sewing machines, hoop skirts manufactures
OF silk, and In fact most articles which are the pro-
ducts Of monopoes the repeal OF the internal tax
has only legislated bounty into the pockets OF the
: NATIONAL TAXATION UNDER THE TARIFF.
Mr. Wells remarks that the old issues OF free trade
and protection have lost all practical Importance,
these being necessary ne thinks there is good OBJ
lection to distributing the additional taxation IN
such manner as TO favor those branches of indus
try most exposed to foreign competition.
The tax system OF England Is devised TO remove
burdens, to cheaper cost and reduce prices. Our
method, on the contrary, is to levy tax, thereby
increasing cost and reducing consumption. The
one method may be called a bounty to the con-
sumner, the other bounty TO the producer; one the
method OF abundance, the other OF scarcity pri-
walton; and as our main difficulty at present ia ex
cessive cost and high prices, we would do well to
consider this difference and study the lesson which
ESSENTIAL FEATURES OF THE EXISTING TARIFF.
The basis Of the existing tariff Is the act Of March
2 1891 amended eleven times; in July H. 1852, and
June 80. 1851, almost made anew
The rate Of duty imposed ~ the existing tarf has
averaged for the last three years about 4s
missions, which In themselves constitute natural
ana unavoidable tarin, ana amount TO 10 or ID per
cent n more duties were Largely increased IN sne
safe home industry for the internal revenue taxes
But since July 1a, 1855, the internal taxes have
out change in the tari This Is equivalent, In point
Of protection, TO minimum increase OF per cent In
the tariff On LIQUORS Il S Z equal to 20 per & cent IN
any civilized nation OF modern tfmes, do not check
nor satisfy the claimants for protection
currency. but largely by the indIscrimInste and u
dlcous attempts st protectton In the tariff itself
Since me war revenue itself has been systematically
made subordnste 70 tne protection Of private inter-
ests In levying new duties.
Thus, Mr.. Wells remarks:-.Every interest that |
has been strong enough or su1cently persistent 70
nnl 1ft tan Wnl hind
received full measure OF attention, while every
other interest that has not had sufcient strength
treated or entirely neglected. Ut Thus, % let sny one
glance at the great departments OF wool and iron,
and he wi 0nd that the duties on all the leading
nized and adjusted In great degree In accordance
with the wishes OF those interested
TARIFF ON DRUGS AND CHEMICALS.
Now, In striking contrast to these Ia the depart
ment OF drugs and chemices which embraces nearly
one half Of all the articles on which duty Ii levied
1t regulates the price Of nearly all medicines and
remedies from the expensive alkal0id that protects
from malaria to the cheap infusion Of the humble
paper staner Of all dyew0ods dye extracts. ressts
aud mordants; Of sulphur and the hitrates that
form the basis OF the great commercial acIds Of the
salts OF artificial manures Jof all the reagents and
tests OF the chemist OF the materials which assist In
he welding and polishing q the metals; Of the essen
tial oils that constitute the raw material OF the
perfumer. the soap maker, and manufacturer
or extracts; OF the great alkaes bleaching powders
anu aDtlscptlCss ot puOtOkItpHtC sMtS anu pre-
paratons the enamels of the eweller; the auxes Of
the glassmaker; the astringents OF the tanner and
les eatherdresser-upon all OF these and many other
articles aud products embraced In this department
the duties are dscordant and serve no good purpose
at ali, ad valorem being mixed up with specifics,
and neither having tue slightest regard to the cost
or use Of product. on some articles like opium
and the akaloids, the duties are 30 excessive that
the chief import s already made through the agency
OF the smug2ler: on others OF corresponding use
and cost the duty Is nominal. ON the drugs used as
medicines the duties which might be made specific
are generally ad yalorem and 80 high ~ 70 be a
bounty for the importation OF the worthless material
which all other markets have rejected.
On some OF the varnisn gums, articles which CON-
pete In no degree with any domestic product, the
duty is than the cost while In respect 70 glass
more duty II paid TO the government By the domes-
tic glassmaker on the imported raw materials ueed
by hm In his business tnan " received from table
glassware OF foreign manufacture. Now the reason
OF tins Is that II has never been made the special
interest OF intelligent aud influential parties to press
this matter upon the attention OF Congress- and the
claims Of the great special Interests have been too
urgent and imperative 10 allow time to consider
them. Two years since the Commissioner, aided by
OF the best expCrts In the cOuuiry eubmttfed