The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1870-09-06
General Review of the Bad Con.
ditiOn of the Revenue SySsem.-
B0utWell Alludes 10 il Only 10
ReCOmmend It's Continuance.

Recommend It's Continuance.
have now separately reviewed the
condition Of the various branches of the
present revenue system, and shall now
close the subject by briefly g!ancing at
its condition as whole, and the policy
and recon- mendations of the Admins
tratlon on this subject,
|. In the tTst place the amount of the
revenues is fixed and maintained with
out any reference at all to the revenues
contributed BY the people toward the
support of the State and local Govern
ments. An intelligent Administration
would scarcely omit so important con-
sideration as this.
.. The amount is fixed without refer
ence TO the growth ofwealth inth coun-
try-in other words, without reference
to the ability Of the country to pay
Suppose the annual net income of the
whole people to be less than the COM
blned anDual sum of State, local and
Federal taxes, some one of these sever
al systems of revenue must inevitably
fail. If the Federal taxes are too high,
the State and local revenues must fail ;
and it the latter are too high, the Fed
eral taxes must fail. And the admins
tration stands in the midst of this peril
all the time, without paving the slightest
regard to it, and evidently without being
aware of it.
II is like bleeding a man in the arms
tile customs and the internal revenue
arms-who is already suffering from the
loss of blood in his body, by reason of
necessary State and local taxes, without
reference to the quantity of blood he
can afford to lose. The only measure of
his ability TO withstand this bleeding,
which is used by the present Admins
tration, is that which is indicated as the
patient approaches the thfoes of death.
The remedy then offered Is promise
mark, mere promse-that the bleed
ing Of the internal revenue arm shall be
partially staunched some day or other;
and at this moment, Doctors Grant and
Boutwell, stand forth, and after taking
credit for what they claim as their
highly sagacious and successful mode of
treatment, proudly allude to the death
rattle of their victims as an evidence of
the remarkable vitality which their adj
ministration of affairs has occasioned
him to exhibit.
Secretary Boutwell, in his last report,
page xvii, urges the following recon-
mendations to Congress:
San essential condition to the success
of the proposed new loan (his four and
four and a half per cent. abortion,) is
the continuance of the present revenue
system. A chief means by which the
holders of the five-twerty bonds can be
induced to surrender them land receive a
bond upon longer time and at lower
rate of interest, is the certainty furnish
ed by the magnitude of the nationalrev-
enue, thai these bonds are to be redeem
ed.p
Now the rate of interest in country
depends, as every man knows who is
now listening to me, certainly every bu-
siness man, upon the rate of business
profit in that country. If man. can in
vest his money in business ana earn five
per cent. per annum upon it; free of all
risk and cost of personal superintend-
ence, he will certainly not lend it on
bonds at four per cent ; and if he can
lend it at four per cent per annum on
bonds, without risk or labor, and can
earn but three per cent. per annum in
business, after risk and labor are COM
pensated, he will as certainly not invest
it in business. The average market rate
of interest in country is seen there
fore to depend upon the average net
rate of profit; and contrariwise profit
depends on interest. The two things
must always and necessarily go tcgeth-
er, for profit and interest are but two
words for essentially the same thing.
Again, the rate of profit depends in
part on the rate of taxation. If, for
instance, man is taxed five per cent
on his whole income he will not lend
that income even on sure security at
five per cent. for lie would reap no ad-
vantage from such transaction. He
is forced to charge more than five per
cent. The rate he is compelled to de-
mand will be that indicated by the rate
of taxation and the average rate of net
business profit combined. Suppose the
latter to be five per cent, he must at
least charge ten per cent. for his money
five to cover his taxes and five more
TO render money lending at least as prof
table as using the same money in bust
ness -Ectract. from Alecander Delmars
Speech ut Columbus, Ohio, august 25th.
(From the Pomeroy (o) Crescent, 25th' ult.l
The Republican Congressional Con-
vention at Marietta last week nominated
w. 2. Sprague, Of Morgan, for Con-
gress, after something over twenty bal
lots. The truly loyal in this vicinity are
not fully satisfied with the choice, and
there are rumors of treachery and foul
play among the lovers of official spoils.
Mr.. Sprague does not seem to be very
prominent man, and his nomination was
mot considered pro obable by the Repub-
licans of this county, some going so far
do W Ssi1 tuSy NOulu nOb NOtCs lOI Dliu III
he were nominated. We will see how
they will '.chaw'' their words. We un-
derstand that Mr.. Sprague is kind of
money broker on a small SCALE The
Radicals can't put up man without he
is some money changer or some one
connected with a national bank. What
matters it if our manufactures have to
pay twelve per cent. for money to carry
on business, and all kinds of business
enterprises are suffering on account of
the insufficient supply of circulating me-
dium, those who have money make a
larger per cent. out of it. All that is
necessary is to shout ''copperhead," and
there is large crop of fools ready to
fall into line.
Says the State Journal, "John A.
Rim uham 10 on ohio and ipoO blo