The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-01-26
WASHINGTON.
Blunderlng Boutwell, BolStering Up The
Income Burdens.
The Alabama Question-A Sensa-
tion Canard Exploded.
>>o>r~~>~~>c~e~~~>c>~
The New Congress---A Long Ses-
sion in Prospect.
The Order Suspending the Government
Sale OF Arms.

The Income Tax Repcal-BOutwell Opposing
~ the Reform.
There is a conflict OF opinion between the Secre-
taIy OF the Treasury ana the senate Finance Com
mttee on the one hand, and the Commissioner OF
Internal Revenue and the Committee OF Ways and
Means on the other, about the abolition OF the
income tax The Commissioner has been before the
Ways and Means Committee two or three times,
urging the abolition OF the income tax He has pre-
scented facts and figures which, to his mind and to
the minds Of majority OF the committee, were con-
elusive in favor OF the abolition OF the tax on in
comes. After him came Secretary Boutwell, who
presented an entirely different view OF the case
10 the Ways and Means Committee, and
opposed with all the argument he could
command the proposed repeal of the tax.
Commissioner Pleasanten had asserted that
the tax, under the new law, would not yield over
S7ocOo per anuum, and that 1t would cost nearly
ss much 70 collect Secretary Boutwell, stated that
he estimated the amount OF revenue from
this tax at between 81, 100000 and $4,000 600,
even with the reductions. He iurther stated
that 1t would not take over 100000 70
collect the tax That was the gist Of his syidence
before the committee to-day, and the members arc
at a loss to know whether Pleasonton or Boutwell,
is the best posted the subject. In the meantime
the Senate this afternoon took up the bill to abolish
she income tax, and Senator Scott, Of Penn.
eylvania, made q strong speech in favor
OF IT, He took the ground that the
government had promised to do away
with the tax after o certain time. That time had
expired, and the government should Keep Its faith
with the taxpayers. He showed that there was
enough revenue without it-that Is, enough to meet
all the legitimate demands Of the government and
held that IL was tax which In its nature was con-
uary 10 the spirit Of our institutions. sena-
N
followed tscott in an elaborate carefully prepared
written speech, speaking for the majority Of the
FINANCE Committee and the Secretary Of the Tre.s
ury. lie, OF course, opposed the ab"nn Of ,ne ,ax
MS speech Mas sl m"sr In MANY respects. to the
..s@.svnt made to-day before the Ways and Means
Committee by Secretary Boutwell, He holds that
the revenue from this tax Will amount to about thr
teen millions; that 1t falls mainly upon the rich,
who are able to bear It, and that the revenue can
not get along without it. II s believed, however,
that there is fair majority in both houses In favor
OF abosbinG the tax, but an effort win be made to
prevent vote In the Senate
Minister srhenck's Instru ,sions "A sensa-
ton Canard Exploded.
A story was telegraphed to a New York evening
paper yesterday TO the eject that Minister Schenck
" detained mere on account OF the receipt OF the
State Department OF communication from Minis.
rom his government instructions to make overtures
for the reopening OF the Alabama claims question.
il was further stated that the proposition submit
ted by the British Minister required certain
concessions, which the President was will
Ing 10 yield, but that Senator Sumner
Informed MIR. Fish that the Senate would
not agree TO the terms proposed This would oil be
very important II true. Unfortunately Tor the cor
respondent who sent the despatch ana the paper
which published It, all the parties commemorative
President, Secretary Fish, Sir Enward Thornton and
Senator Sumner-unte in an unqualified denial OF
It. Mr.. Fish pronounces it a fabrication from be-
ginning to end. Mr.. Sumner says that far as
he is concerned there is not word Of
truth in 1t. fhe President states that he
}as seen similar candrds from the same
source. Altogether the story seems TO have been
manufactured for the purpose Of creating tempo
rary sensation on subject just now regarded as
one Of the greatest importance.
Argument the Alabama Claims.
Tomorrow Mr.. John A. Parker, President Of the
Great Western Insurance Company, Will make an
argument before the House Committee on Foreign
Affairs In favor Of bill embodying the recemmen
the Alabama claims.
The Organization of the Now Congress-
Business for the First Session.
The House judiciary Committee agreed to-day t,
report adversely the bill to repeal the act which
provides for the organization Of each new Congress
on the 4th OF March following its election. Thi
question has been before the committee for SOM
time, and the action taken to-day indicates tina
the new Congress win convene for business on tn
eth OF March. How long IT win remain In session
Ii question about which there 10 much diver
sity OF opinion Mr.. Dawes stated tosda
that he did think it would adjourn before the las
OF April or the 1st OF May: others are OF opinion
that 1t will continue to the LIST OF June The Presi
Dent ie understood to favor the organization OF tn
new Congress on she 4th Of March. He Will hardl.
throw any obstacles in the way OF q session SUN
GENTLY long 10 dispose of the st. Domingo ques
tion. The new members Will be anxious u
stay long enough to get familiar with thet
Duties TO learn their rights and privileges
and to draw two or three instruments o
their annual stipend. 1t is not improbable tina
the revenue relormers viii combine with tn
stralghtout democrats and try to get bill through
reducing the tariE, earnest OF their purpose u
carry out the principles OF the platform upon whicl
most OF them were elected. Nearly all the measure
now before Congress outside Of the appropriation
bills will fail for want OF time. Those interested II
them, such as railroad, steamship and telegraph
cable men, will do all they TO get them prough
up again and passed by the new Congress. Tn
prospect is that the session win into the warn
weather.
Bonded Observation-Disclosures on Imported
Spirits.
Tbetjil reported to-day by Mr.. Hooper, from tn
Committee OF Ways and Means, and passed by tn
House with the Senate amendment concurred 10
provides thst merchandise having arrived on 0
before the 3Ist day OF December, 1870, and no
entered or transferred to bonded warehouse, sha
be entitled 70 entry as II such merchandise had bee
IN bonded warehouse on that day. provided tn
importer apply therefor IN writing to the COllecto
within thirty days. 1t also provides for the entr
OF gin rum and whiskey at the rate Of Two dollars
being the sape rate as on brandies.
THE Deficiency Bills.
Tie Committee on Appropriations had the def
ciency bills under consideration today. There Is
general disposition in the commistee to cut dow
tue estimates TO the lowest figure possible. Score