The Tiffin tribune. (Tiffin, Ohio) 1868-1887, 1871-09-07

e and nine millions in 1866, and wa
e without doubt, the heaviest and mo,
u oppressive internal tax known /
r modern times. The last reduction
o made by the act of July, $50, has lei
= an internal tax only on six classes {
q OBJECTS from which revenue was pro
duced during the year ending June p
= 1871, as follows:
! ]. Spirits and fermented Iiq-
55l million
o = fiis
n $ Banks and bankers-.-.-..-.--. 81
= Illuminating gas.-..-.-..-.----. 2le
, = 7tslli ---------------------.------ llie
n =. LANDilAe1 ..------------.--..-.-. lN-4 90
: Add taxes received during the
year from old rates, now re-
b Peaieu lJ
4 Total-..--.....---...-..-.....- Ifjiz
Some attempt is being made {,
/, sweep away what remains Of our in
T ternal revenue system, but believ,
r There Is no tax which the people NOR,
E ally approve than that which levie,
nearly a hundred millions a year upon
the consumers Of liquors and tobacco
: IL Is voluntary tax, from whiel
, every citizen can escape by absti.
? nence. Its imposition does not se.
; riOu7ly cripple any industry, and II
! probably has less tendency Than any
other t0 increase the cost Of the nee
. eSSsaries of life.
/ The retention of the income tax in
IFS present shape was, in my judg-
ment, a blunder. If any part of il
had been retained, it should have been
the tax on incomes arising from the
Investment of capital, where the own
er did not apply his own labor. The
tax, in its present shape, is fatally
crippled, as a revenue measure, aud
should be abolished. In many of the
rural districts the receipts do not pay
the cost of collection, aud the law still
retains IFS obnoxious features, COM
pelling citizens to expose their bnsi-
ness, and making it possible for dis
| honest men to escape assessment.
All nations. who have levied a tax on
Incomes have regarded it a powerful
instrument to be used only in great
emergencies-a war measuTe-Which,
like a drafted army, should be mus
tered out in time of peace. So annoy
ing IS an income tax regarded in
France, so. irritating in its interfer-
ence with the privacy of business,
that the venerable Thiers, chief exec
Eutive of France, announced in the leg
islative assembly, q few days since,
that, dcplorable as was the financial
condition of the country, it was not 80
desperate as to warrant the impOsi-
ton of an income tax on earnings of
the people. The small tax on illumi-
mating gas can also be spared, and the
remaining taxes, those on liquors, to-
haecO, banks and the stamp tax, can
he collected by 4 greatly reduced or
ganiZatiOn. Thus modified, our in
ternal revenue system will produce
about one hundred and twenty mill
lions a year, and its retention will
doubtless receive the cordial sanction
Of the people.
But after this reduction and mOdifi-
cation of the internal revenue has
been made, there can be a further re-
peal of taxes to the amount of thirty
live or forty millions of dollars. Aud
this brings me to the consideration of
our revenue from customs.
THE TARIFF.
In the first place this should be
treated not as a theoretical, but an in
tensely practical question. The theO-
rists of both schools may be benefited
by remembering the criticism of re-
cent writer, who says "rhat the pro-
tectiOnist, in his zeal for the prosperi-
ty of the producer, is constantly in
danger of forgetting the interests and
rights of the consumer; and that the
free trader, in his anxiety to tighten
the burdens of the consumer, is in
equal danger of forgetting the inter
ests of the producer"
/ believe there lies between the two
extremes, positions held by the doe
trinaireS, line of conduct safer for
H. L.~elsITy anu " IstsI It1 UIlU ,,s,.ss-
try, than either would mark out Let
US begin with facts.
The government must raise an an
nual gold revenue of about one hun
dred and fifty millions, for the inter
est of the public debt, for the one per
cent sinking fund, and for its consul
lar and diplomatic expenses. This is
the central fact in all our tariff Iegis-
latiOn. The further fact that the gov
ernment is receiving from customs
duties a large surplus above that sum,
proves that a reduction of this form OF
taxation can be made with safety to
the treasury. Blu, there are other
special reasons why the tariff laws
should be revised. They were enact
ed during the war, under the press
ure of All unusual necessity for taxa
tIon, in time of very high prices,
and a heavy premium on gold. From
March lS6l To March 1867, congress
passed no less than I3 tariff acts, each
having special reference to the situa-
ton of affairs at the time. Now we
10 aUuI
the conditions are greatly changed.
The other branch of our taxing sys-
TEN has been six times revised and re-
duced since the war. The tariff has
remained almost untouched, and is
now far less equitable i'm its prOvi-
sions than il was five years ago. Last
year, for the first time since the war,
a general revision of the tariff was at
tempted; but the bill broke down un-
der the load of debate before half its
pages had been considered. Near the
close of the session, however, 4 bill
passed through the house without de
bate, under the previous question,
which became law, and which furth-
er reduced internal taxes by the
amount of fifty-five millions, and the
tariff taxes by the amount of twenty
three millions. This act brought
great relief to the country, but was
partial and incomplete in its p-Ovi-
sions. Only q small portion of the
tariff was revised, and some of the re-
ductiOns which We're made left the
provisions of the law more unequal
than before.
There is another consideration out
side the merits of the case, which no
political party can ignore. IL is this
Public opinion demands a revision
1t will be made either 10y the friends
or by the enemies of the tariff system.
Its friends should control the work.
This is not the occasion to discuss
details, but some general indications
can be given of the course that should
be pursued. And / mention, first,
that some promises made by congress
during the war ought To be redeemed,
or a good excuse should be given for
not doing 90. For examples: Among
the enormous burdens imposed by the
war was an internal tax of six per
cent. on the value of all articles man
ulactured by our people. In the year
1866 this tax alone, exclusive Of the
tax on spirits and tobacco, produced
L lldI ' lAoL SUM Vi AAAbAAGg
was paid into the treasury by our
manufacturers, out of their net earn
ings. At the time this tax was i'm
posed they called the attention Of con-
greSs to the fact that il unbalanced
the adjustment of tariff rates, and neu-
tralized, by its whole amount, the
protection they had before enjoyed.
Accordingly an additional duty was
imposed on imported articles which
competed with home manufactures;
aud Mr.. Morrill,, of Vermont, and 9TH
er leading members, declared ut the
time that this additional duty was
only temporary, and intended solely
as 4 compensation for the six per cent
internal tax. Now this internal tax
has been wholly removed, but the
cOmpensating rates remain untOuch-
ed, except i'll few instances where
they We're modified by the act of July,
1870. Again, there are some rates 50
excessive, and in the changed cOndi-
tiOn of affairs so indefensible, that their
retention has operated to the preju-
dice Of the whole system. Take salt
as an example. Before the war il vas
almost duty free, the rate being a cent
and half a hushel During the war,
To meet the Necessities of the govern
ment and 10 aid the manufacturers Of
salt, the rate Was increased from time
To time 10 where il now stands, ut
eighteen an1 fu-anf t--four e4nfa On "a