The Wheeling daily register. [volume] (Wheeling, W. Va.) 1864-1878, 1871-12-06

on the dSSulupliOu tuat tuc oohS uuu
Der of pounds would have reached tax
alton had the rate OF tax been uniform
either at l6, "a, or 81 cents per pound
a uniform rate OF 81 cents would have
increased the revenue by the sum oI
81, ,SS2 82l 81. while uniform rate Of
"a or l6 cents would have diminished
those receipts in the sums respectively Y ot
s., ,72S, ,OlS.7l and $40, ,33S.S59 O3. am
aware that it is contended by those
who advocate a reduction OF the tax
to uniform rate OF l6 cents per pound
that the increased consumption which
would result from such q reduction, and
the greater number of pounds which
would reach taxation, would nearly, If
not quite, compensate for the reduction
in the rate. l am unable. however, to
see any we'll grounded reason for such
a conclusion-first, because such re-
duction would have little. il any, ten
dency to increase the consumption Of
smoking tobacco, as nearly all smoking
tobacco now pays but 10 cents tax; !;
secondly, such a reduction alone would
not tend TO diminish the quantity OF raw
or leaf tobacco consumed, for most Of
the leaf tobacco sold directly to con-
sumers is used Tor smoking purposes,
and the motive 10 smoke untaxed Leaf
would not be removed or lessened by
diminishing the tax on chewing tobac-
CO; thirdly, because whatever increase
in cousum ption there might be from
such a reduction in the rate must nee.
essarily be of chewing tobacco, Of plug,
twist fine cut, &c, and Of snuff, and OF
these the consumption would have TO
be doubled, making it one hundred and
twenty-eight millions OF pounds. where
it is now only sixty-four millions OF
pounds, in order to obtain the same
amount OF revenue as was collected the
last fiscal year. Such an Increase in
the consumption OF chewing tobacco IS
not to be expected.
MY own opinion is, that with the
tax at "a cents, taking into account the
natural increase OF the revenue as shown
between the collections Of succeeding
years, and with the advantage Of some
legislation hereinafter recommended,
we shall be able to keep the collections
on tobacco up 10 those under the pres
ent rates.
This recommendation, however, ia
made without regard to its relation to
future total revenue results. II IT
should be the opinion OF Congress that
the Weld OF revenue from internal taxes
should not be materially decreased,
then, to accomplish the desirable re-
suits expected from a consolidation OF
the tax on tobacco, and to compensate
in part TO the revenue the expected
large loss from the expiration OF the
income tax during the current fiscal
wear, and the further material loss from
articles and occupations iormerly taxed,
but now exempt, "a rapidly decreasing
item, OF course | would advise con-
solidation OF the tobacco tax at 81
cents per pound"
The Commissioner expresses the opin'
ion that the principal frauds in the
payment Of tobacco are effected through
the instrumenality OF peddlera, and rec
ommend-, in order to put an end to this
illicit traffic, that every person who sells
or offers to sell, manufactured tobacco,
snuff, or cigars from wagons, in the
manner of peddlers travelling from place
to place, be required 10 pay q special
tax oil fifteen, twenty-five or fifty dol
lars, according as they travel with one,
two or more horses or mules, and 10
comply with such regulations a5 may
be prescribed by the Commissioner Of
Internal Revenue
The Commissioner calls attention 10
the TACT that a large and increasing
amount Of raw or leaf tobacco is sold
annually at retail directly 70 consumers
without payment OF tax This trade is
a subject OF complaint by the manu-
facturers, who allege tnat it is serious
injury to their business, from which
they ask to be protected. On this point
the Commissioner says;
IL would recommend that section SO
OF the act OF July %, 1868, be SO
amended as TO impose special tax OF
FIVE hundred dollars on every person
who shall make business Of selling
raw or leaf tobacco 10 persons other
than those who have paid special tax as
leaf dealers, or as manufacturers OF to-
bacco. snuff or cigars. or who shall sell
leaf tobacco in quantities less than
twenty-five pounds. or wi 20 shall sell such
tobacco directly to consumers, or tor
consumption, without lis being manu-
featured. And il this is not deemed
sufficient, | would further recommend
such a tax on the sales o. such dealers
in excess OF $1,000 annually, as would
be equivalent to the tax on the same
amount and value OF manufactured 10
bacco. Such q provision OF law will
not only give the required protection 10
the manufacturer, who now pays a
special tax for carrying on his busi-
ness, in addition 10 aspecific tax on all
bis products, bat it will also, | am per
suaded, tend largely to increase the
Government revenue from this source.
Concerning the system Of bonded
warehouses, the Commissioner gives
figures to show that less than halt the
tobacco, &c, removed in bond from the
manufactures is actually exported.
In view OF these facts, the Cornmis-
sioner says: at is my own opinion,
and, so far as have been able to ascer-
tain, it is the opinion OF manufacturers
OF tobacco generally. that the present
system Of export bonded warehouses
can be entirely abolished to the interest
both oil the Government and OF the
manufacturers
The Commissioner refers at some
length to the changes which have been
made during the past year in relation
to the production OF stamps, 60 az to
prevent frauds and limitations. These
changes have been particularly noticed