Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1872-03-16
FOrty-SsCOnd Congress
sENArE-..-...w .wlsnrNaros. March ls.
SECOND SESSION.

Z anu
Senator Sherman addressed the sen
{ ate as follows: sin opening the debatl
9 upOn this Mll it will perhaps be mos
i agreeable to the senate that
i state the facts as to our fnan
q cisl condition that enables u
2 now, for the siEth time since the clos
of the war, largely TO reduce the taxet
: imposed on the people of the United
9 States, and I will also state the
general principles upon which a re
: duction of taxes as proposed are based
/ The details as to specific taxes would
/ extend my remarks far beyond my
, purpose, and will be more properly
stated from time to time as the debate
progresses, The taxes already re-
peaIed yielded S233, ,000, 600; our rev.
enues still largely exceed our expendi-
lures, and we are justified by several
causes in continuing to repeal taxes.
The taxes that remain yield largely
more than twice the excess in former
years, and more than was estimated
by the most sanguine person. Ihe
production Of the country has largely
increased, and industry In almost
| every department has been actively
and busily employed. The con-
sumption OF our people, which, un-
der every other system Of taxation,
which is chiefly the basis, taxation
has, by the prosperity OF our Industry,
been enlarged and increased, at the
same time that our national expendi-
lures are diminishing. Our financial
condition is improving in every parti-
cular. We are slowly Dut surely, with
out contraction or expansion, by the
increasing uses OF our paper money,
approaching a specie standard.
The interest on our debt is daily
diminishing by the payment of the
public debt and the reduction OF the
rate Of interest on that which remains
All these favorable circumstances en-
able US TO approach further reduction
Of taxes with more system and infor-
nation than formerly, and, l trust,
( with sincere desire 20 make the re-
| ductiOn in such way as to yield the
| largest possible relief to our peo
| pie. The only questions are how
/ much and what taxes ought to
/ be repealed. Let me first state how
/ the subject now comes before US. On
| the 14th of March, 1871, the house of
representatives passed three bills-a
bill TO repeal the duty on coal, bill
| to repeal the duty on salt and q bill
to repeal the duty on tea and coffee.
The duties thus proposed for repeal
| yielded last year $21, ,O00, 600. The
committee on finance was of the Opiu-
| ion that it was not wise to consider
those bills except in connection with
the whole subject of rev enue reduc.
ton. On the 18th OF April, 1871, the
senate passed the following resOlu-
ton:
RESOLVED, That the committee of finance
| is hereby instructed, curing the recess of
| congress, to carefully examine the exist |
| ing system Of taXstion by the United
| States, with 6 view to propose such
| amendments to the bill OF the house of
representatives repesling certain taxes
/ now pending in the senate, as will sim.
| plify and revise both the internal taxes !
| and duties on imported goods now in |
| force, and so that the aggregate of such |
! taxes shall not exceed the sum required |
TO execute the lsws relative 10 the public |
| debt snd to pay the current expenditures |
| of the government, sd miniEtsrea with tbs |
| strictest economy; and 80 that such taxes |
may be distributed IS 30 impose the least |
| possible burden upon the people.
In obedience to this instruction, the |
| committee on finance, during recess, |
did examine in detail the different |
taxes imposed by our revenue laws, |
and agreed upon amendments to both |
tariff and internal revenue laws, but |
in reporting to the senate our action, |
We forced to TO consider the DOW
~ of the senate over revenue bills. |
y he powers OF the two houses over /
the rev, ,anue bills is regulated by article /
: section =. clause l, of the cOnstitu. |
-, of the Uisited States, as follows:
t.,, bills for raising revenue shall |
,,ioina,o 1n - the house of representa-.
Tvs bnt tb. genate may propose or |
cono,,r clSv11 - y.,ith an. ~adments, as on other
bills"
snbjeef of contToversv ,,>etwesn the
two houses. We had three b. US "a 'tie
house, with uDquestiOned DOW, US 70
propose amendments to either Of theLNs
1t was clear that if the house proposed
to repeal or modify certain taxes, the
senate could propose instead to repeal
or modify other taxes. But as all the
taxes proposed for repeal by the house
were custom duties, the question arose
whether they would, as the amend
ments propose, agree to the repeal of
the internal taxes. The parliamentary
law, es well as the practice heretofore,
E41LLltiA LtaA6 uuEollQu III ALAG luhtlRGs /
The subjects are germane TO each
other. They are both bills for raising |
revenue. The distinction is only to
the subjects snd modes of taxation.
The house has repeatedly connected
the two in one bill and notably so in an
act passed two years ago. The mOdi-
cation OF one compels the moditica-
ton of the other. The logic OF the
oNv,,v.o1s -, |
the whole revenue when proposing
to reduce either from taxes. Still, to
avoid possible dispute, the commit
tee on finance thought it advisable,
while considering the whole subject |
of taxation, to cOnfine their amend
ments to custom duty and to oHer
these amendments to one bill
rather than to three. The amount
repeal by the house substantially
conforms to the amount proposed by
the senate. The house will no doubt
In due time pass a bill to reduce In
ternai taxes, when the senate can pro-
pose its amendments. In debate, how.
ever, we must consider the subject as
a whole, and must therefore consider s
how much revenue we can dispense
with and what taxes ought to be re.
pealed or modified. Since the close Of
the war it was the highest public pol
icy to maintain our revenue largely in
excess Of our expenditures, for large
surplus revenue was not only useful {
to pay our Unliquidated debt, but was
of great importance in re-6stablishing !
our public credit, in improving our {
currency and reducing rates of interest.
lsrF Ln Asvran hos oyrfvvod ]
we can safely reduce our revenues to '
barely enough to pay the expenses of l
the government, economically ad- {
ministered-interest on public debt
and such additional as it may seem to {
be good policy to apply on principal.
The expenditures during the last fiscal
year, ending June Both, 1871, for the {
current fiscal year, partly estimated at
$293, ,403, ,382, for the next fiscal year 6
estimated at $S73, ,O25,773. These {
sums exclude the sinking fund and {
all payments on the principal of the I
debt. The net receipts of the govern
ment during the past fiscal year end
ing June 30th, 1871, were $685.
323, ,944, and for the current fiscal
year is estimated at 1853, ,000, 900. The l
>tual surplus revenue for the year
:. "a 'Qg June 80, 1871, was $91, LAG, 1876; |
~ tha current fiscal year partly esti-
" 81 st Al, ,774.99l: for the next fiscal I
-. ~ = esfi,. .Rated at SS5, ,974, ,226. The 6
',e..,io,, e..a srise~, how far the estimates
l \ 4eeSel eoS1-nanditure will be increased by
he additional app oprlatlons Dy con-
1ress. 1t is not pr0Saole that any
Material change will be made In the
sggregate appropriations fo< the cur
-ent fiscal year, while our current re- !
,eints are largely in excess OF the esti.