Evening star. [volume] (Washington, D.C.) 1854-1972, 1869-12-20

5ylors.gn countries in preference 10 our othel
uonesuc products That this now Is the case
| proves that gold Is relatively the cheanest com
modlty we have to export. WIZ
Inc point to which the Commissioner woult
enPeclaliy dlrect attention, and which aitbouyl
pointed out in former reports has received IitfI,
| consideration, rs: that there is no sucb tl,in.
possible as the resumption and continuance ol
| specie payments with a continuance of mi.
abnormal system of foreign rade and ex changes
and Tor the simple reason that gold will NOT 81 ax
mere, and would long ago have left Us 10 the last
| uollsr, had not the bords of the national gov.
| ernment been available for the settlement OF
| adverse foreign balances i'm the place of COLL
| We must rt duce prices, 20 that foreign nation,
~i,i or Nilhng because It Is for their interest,
| To change product for product. And to- ac-
colnpilsh this, there must be contraction for 10
Ieduce rlcts perm a. emily and equitably while
n.aii taIiihg seven hundred millions OF irredeem-
abie ri1 ef money, is SIMPLY an impossibility.
The question how much gold is needed to he
gin and sustain system OF redemption depends
wholly upon the answer to the prior question
how much currency there shall s. "a rcJaen,
Seven hundred millions of paper could not he
Kept redcem emable with less than seven hundred
miiiiors OF gold, because with such an rlount OF
currency, II would inevitably be depreciated
and hence gold would bear a premium which
every holder OF paper would be dcsirous To re-
aliZe. With four hundred millions OF paper on
the other hand. hundred millions of gold
would probably be ample. because the currency
not being in excess OF the wants of commerce.
would not suffer depreciation, and gold and
paper being on otherwise equal terms, paper
would he preferred tor its greater convenience
IN use, just a. in 1850 the banks were fully allie
TO redeem all Of their circulation which was
pres nted for payment, although having but
eighteen cents of specie on each dollar of i'm
mediate liabilities. IL is not the ratio between
gold and paper that needs TO be regulated, but
ule ratio between the amount of paper i'm
taeuiation tia and the volume OF national produc-
Unpopular as the declaration NAV be- the Com
missioner Is constrained TO believe that contTac-
ton, direct and undsguised, is the one necessity
oi the situation; the only remedy for existing
evils SO far as the currency has relation 10 them
and that the nation cannot emerge from its
embarrassnents and difficulties until the makers
and administrators of the law have the honesty
and courage to take it up and carry il forward
to the end.
Taking up the question of taxation. the Com
missioner estimates that il can be reduced TO the
extent OF fifty millions. The three principal
sources of receipts under the internal revenue
are the taxes on distilled spirits and fermented
liquors, on tobacco, and on incomes. The rate
OF taxation on the first two OF these has been
fixed at a standard which the experience of tIe
past year has proved to be the most productive
Tie taxes on whisky, beer. and tobacco should
not, IN the opinion of the Commissioner be
modified unless il Is desired TO repeat the q is
agreeable experiences OF former wears and tn
pefpetuate the power OF corrupt organizations
1he income tax demands essential modfca-
ton. The Commissioner would recommend that
beginning with the next regular assessment the
present rate OF five per cent. be reduced Ia three
The reason for this recommendation is that the
tax OF i've per cent. is excessive and constitutes
real grievance, being greater than that ever
Imposed 10y any other nation, except ia extraor-
binary rational eNigencies. An additional rea-
son is that an assessment of three per cent.
would probably yield to the treasury a sum very
nearly equal TO that at present collected; mas
much as, while the reduction of the rate would
afford great and welcome relief TO the classes
who now pay, II would at the same time bring
within reach ef the tax great numbers who now
either avoid giving in lists at all or while doing
so, force the constituents of their income so as TO
escape contribution entirely.
In connection with this reduction OF the gem
eral rate. the Commissioner would recommend
that, while the absolute eXemp ton to all per-
sons should be allowed to remain as now fixed,
namely, $1,000, the exemption on account of
rent should not he left indefinite. as at present
Ss tc Se sesRa r46 rted 70 amount sn
OF the laboring classes, for instance s9o0
In respect 10 the proposition seriously adyo-
Gated IN many quarters, that this tax should be
Wholly removed, the Commissioners thinks that
the attention OF the country should be called TO
the fact that this tax was paid during the wear
1865 by so small a number as 30 900 persons ont
Oh tne entire population, yet representing an
appreciate income OF not less then $500 OO5 OeO
exclusive OF the amounts remitted by reason of
rents and the minor exemptions. Allowing
then, for the families OF these $50 900 contribu-
tors, 1t Is evident that only about a million OF
the population are interested in having the tax
removed, while the remaining thirty-eight and
nan millions OF the people are interested in hay-
ing it maintained.
To sum up what has been said upon the in
come tax, the Commissioner is of the opinon
that reduction OF the rate of assessment from
hye TO three per cent. upon individual incomes,
Wlthout any other change in the law, would not
reduce the receipts from this source by more
than i've millions ot dollars at the outside; while
III the exemption of rent were to be limited as
suggested, or even fixed at five hundred dollars
there would be no falling of nor abatement in
the receipts
There then remains large body of minor and
miscellaneous taxes under the internal reyenue,
which together yielded i'm 1868 less than fffy
millions OF dollars. OF these the Commissioner
would recommend that the taxes embraced i'm
what is known as Schedule A." viz, the taxes
assessed on watches, silver plate pianos billiard
tables, and carriages, should be entirely remit
ted. They are inqnisitorial in character, highly
offensive in collection, petty and contemptible
IN the revenue yielded. If these taxes are in
tended TO have a sumptuary bearing, they are
altogether out of the sympathies of modern civ
ilization; If their object is TO secure revenue
they are absurd failures. Ten times the amount
could be obtained with the same effort i'm some
other direction, and without exciting half as
much odium and hostility.
As best calculated to carry out the two objects |
proposed at the outset of this inquiry, the Com
missioner would further recommend the repeal |
OF the following taxes, now levied under the in
ternal revenue list. The whole body OF what is |
known as special taxes or licenses-those levied |
on banks and bankers, and upon manufacturers
and dealers in spirits, beer, and tobacco, being,
however, retained. The loss of revenue on this 4
account will not be i'm excess of ten millions OF
dollars. I'd. The taxes on the gross receipts OF
railroads. stages, coaches, insurance, telegraph,
and express companies, canals, ferries, ships
barges, and steamboats,. The loss of revenue
from this source will not be I'm excess of seven
millions Of dollars. Sd The taxes on the sales |
Of articles not otherwise specifically taxed. The
receipts from this source will approximate eight
millions Of dollars. Allowing, then, for the |
extreme possible loss under incomes, the amount |
Of taxation above proposed to be remitted TO /
the people in consideration of the present large |
and increasing surplus of receipts over expenii-
lures, would be in the neighborhood of twenty |
six millions OF dollars.
In the matter of tariff reform the Commits
sioner holds, with much emphasis, that the |
maintenance of an average duty of forty-seven
per cent, as under the existing tariff upon all
dutiable imports, is excessive and unnecessary 4
and opposed alike to the highest interests OF 4
civilization and humanity, as well as to the !
proper and healthy growth OF all domestic COM I
merce and industry, and that under no circum-
stances except for the supplying of certain tech
nical omissions i'm existing laws, for the sole
and avowed purpose Of revenue, should any in
crease of rate be hereafter permitted.
The Commissioner recommends the importa-
ton Of hides and skins of every description and /
all leather except morocco, japanned and pat
ent leather, be hereafter admitted free of duty.
Also, the free importation OF hemlock or other |
barks used for tanning; Of sumac, and of the |
fabrics of wool known rs lasting and serge, when
the same are woven or made in patterns Of size,
shape and form, and cut in such manner as to /
forS Sf,ro xal,-