The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1870-01-03
The Finances-The Income Tax.


isaued to the amount of twelve hundred
millions of dollars for the purpose of taking
M some of those now out--that is, the five
twenties already due. We arc now told
that expecting this measure to be violently
opposed by the existing national hanks, Mr..
boutwell, will try to keep down such OPP
position By threatening to encourage the
sstab rr:shmen, of new banks on the free
banking principle. But free banking
is Numerically opposed to the policy
Of contraction, and the Secretary Is
supposed to be contractionist. we
know not how he proposes to reconcile his
two conflicting theories. Possibly ne VIII
surrender the one because its abandonment
10 necessary to the success OF the other.
He intends 10 recommend his new plan TO
the country on account of its economy.
And no one can dispute that bonds bearing
only four per cent. interest would cost the
country much less per annum than bonds
bearing six per cent. There is no room Tor
disputation upon this point. The trouole
will be to get the new four per cent. bonds
taken OF par. We have never yet seen any
good reason given for the belief that the
capitalists Of the country Will lend money
TO the Government ut fourper cent. when the
bonds bearing six Per cent. sell for such
prices as they now do. Every man can see Tor
himself that if four per cent. bond is
worth one hundred dollars q six per cent.
bond is worth one hundred and fifty; and
every man not mystihed by the intricacics
of subject which he does not understand,
must therefore know that if the state
of the money market were such that new
four per cent. bonds would command
the former price, the old six per
cent. bonds would command the latter
price. There s no virtue IN the newness
of q bond. And 80 we conclude that
Mr.. boutwell, will never be able
to sell four per cent. bonds at par before
the six per cent. bonds command pre-
MUM o. fifty per cent. He may force
some of them upon the banks if Congress
be 80 disposed. But he could just as easily
and just as honestly and honorably compel
the banks to accept new six per cent. bonds
at Fifty per cent. premium.
AT any rate, Mr.. Boutwell, assumes that
no can dispose Of his new bonds; and also
assumes that, having disposed OF them, he
will he able 10 remove taxation from all the
necessaries Of life, leaving the tariff and
the tax upon spirits, malt liquors, tobacco,
and incomes, to provide the sum Of money
necessary for the purposes Of the Govern
mont. This will be tempting programme
TO those Of the States which nave little or
no interest in the tobacco trade but il is
mos, discouraging one to Ms Of Virginia. il
is true we shall be none the less able to pay
our internal revenue taxes on tobacco be-
oause the people Of other States are relieved
of their taxes but it seems hard that the
chief business Of on impoverished State
should be taxed so heavily whilst the trade
VI ether and more prosperous States Is re-
1t Is not in,imated that Mr.. boutwell,
will recommend change of the tax upon
any OF the articles named except incomes.
He is said to be in favor Of increasing the
amount exempted to 81, 800 or $4,000, for
the very excellent reason that man hay
Ing an income exceeding that amount Gun
q fprIf m
excess than the man having only that in
come can afford to pay any tax upon it.
Some of the papors VI the country clamor
loudly for the entire abolition Of the in
come tax, not knowing how silly q thing
they are doing. If they would only recall
the fact that New York city alone pays
more of this particular tax than some half
q dozen States-we have not the figures be-
fore us, but we arc under rather than over
the mark-they would soc that it falls ex-
actly where it 10 most easily paid, and
comes from the very people to whom it is
returned in the shape of interest upon
bonds, Sc. No other tax could be devised
which would operate so justly and equally
and be 80 little felt by the majority Of the
people Of the country. Tho whole of it is
paid by very small number of people
and when the increase of exemption il
made, the whole will be paid by mere
fraction Of the population Of the country,
and by no person not well able thus to con-
tribute to the support OF the Government.
We suppose that these considerations will
be pressed upon the attention Of Congress
and We therefore further suppose that Con-
gress will no. abolish the income tax.