The Portland daily press., 1872-03-16
XLIId CONGRESS- SECOND SESSION.
SEN AVE


Western papers that he received $4,000 fee in
the McArdle case, for representing the United
States, and changing his vote against the i'm
parchment of President johnson was influence
ed thereby. He denounced the charge as mali
cious and preposterous. He produced a letter
showing he was employed, not by johnson, but
by Secretary Stanton and General Grant two
months, before the articles of impeachment
were prepared, and his fee was fixed by Stan
ton. He argued that his employment in the
matter was perfectly legal and proper The
charges were written by man in the employ
of the government, and he intimated they had
been made for the purpose of injuring him be-
cause he was hostile to the influence by which
the man was kept in Office. He also referred to
the resolution offered by Mr.. Chandler some
time ago, for quiring whether any Senator
had taken fee from the United States contra
ry to law, and said that when the authors of
these ISLANDERS discovered that he had been en-
plOyed by Grant instead of johnson they would
not ask again for an investigation, but like
Shiny snakes crawl to their dens.
Mr.. Chandler replied that he denied he ever
thought that Mr.. TruMbull had been employed
by Johnson and said his object was to ascer-
tain whether the Senator had violated the law
He still believed he had done SO; and as to Mr.:
TrumbulPs personal allusiOn to him, he hurled
it back to its Shiny source. --.-
The Vice President called Mr.. Chandler to
order.
Mr.. Chandler apologized TO the Senate.
The tariff bill was taken up. Mr. Sherman
addressed the Senate in explanation He said
that our financial condition would enable us
now for the sixth time since the close of the war
to largely reduced the taxes imposed on the peo-
pie of the United States. The taxes already
repealed yielded 233,OoO,OOO and our revenues
still largely exceed our expenditures. The taxes
that remain yield larger~revenues than in form
er years, while the expenses of the government
are constantly diminishing The approach of
the currency to specie basis the prosperity of
the country, the decrease of the interest on the
national debt, and other causes renders it posi-
BILE to further reduce taxation. The question is
how much and upon what shall taxation be re-
duced: The principal expenditures during the
last fiscal year ending June so, 1871 including
interest was 1892, III, 1925 For the current
fiscal year (partly estimated) 1898, 400, 082 80;
for the next fiscal year (estimated) $273,O25,-
1889. These sums exclude the sinking funds
and all the payments on the principal of the
debt. The net receipts of the government for
the last fiscal year ending June 80, 1871, were
$685. 1913 944 SO; for the current fiscal year (esti
mated) $359,OOO,GO0. The actual surplus reve-
nue. for the year ending June 30, 1871, was $91,
LAG, 1864; for the next fiscal year (estimated)
$50, 974, 226 They can and ought to be dimin-
ished in several in several important branches
of the public service. The abolition of the
franking privilege, reduction of public printing,
reduction of internal revenue service, close
scrutiny of the pension list, careful limitation
of the appropriations for public buildings, and
general cutting off of expenditures that grew
out OF war but have survived the war, would
reduce the expenditures, and this
should be DONE MIR. Sherman said that the
revenue of the government the present year
would be 300, 900, 600 in excess of expenditures
$5O,000,000 to the reduction of the
public debt, there is still surplus of $5O,000,-
900. which should be the extent Of our revenue
at this session.
In making reduction OF the revenue it
should be done so as to give the greatest possi-
BILE relief and do the least possible injury to any
industry fostered by our. own laws. 1t has been
cOnced that internal taxes should first be re-
pealed. The worst of these taxes have been
repealed, but there still remain special taxes
which makes it necessary to keep revenue Off
GERS in every county of the United States
These special taxes are on wholesale and retail
dealers in spirits, tobacco and beer, on banks
and bankers and gas. Many of the stamp
taxes are imposed on the production of matches,
medicines and the like. Others are ON the sale
OF property and on commercial paper while all
involve the employment of a multitude of
agents tor the sale of stamps While produce
tive, they are annoying, expensive of collection
and easily evaded. If special taxes ON spirits,
tobacco and beer can be consolidated with the
tax now levied on the manufacture of these ar
ticles at the distillery, brewery and lnanufacto-
ry, and the special tax on gas and bankers are
we can dispense with the vast army
of revenue officers and concentrate the atten-
ton and surveillance of Internal revenue Off
GERS to places where whiskey, tobacco and beer
are made. If we can dispense with these taxes
the whole system of internal taxes will disap-
pear except the excise taxes on whiskey TO-
bacco and beer, which by common consent of
the producer and consumer are recognized as
projects of taxation. Taxes on circulation and
deposits of national banks do not enter into
our interoal revenue system. They are rather
regarded as fund from, (which to pay expenses
of printing the notesand maintaining the sys-
TEN.
The excess collector fIom this tax over these
expenses may probably be regarded as a return
payment for franchise This tax is collected
directly by the Treasurer of the United States
and should be retained. If it is deemed best
to retain this tax as against other banks and
bankers, it may be collected in the same wey
and by aid of the bank examiners. In advance
of definite measure dealing with the Internal
Revenue, am prepared to say without COM
uniting anyone else, that we can and ought now
to repeal all internal taxes, except on whiskey,
tobacco and beer, and to consolidate and sim
plify them. tHF
The income tax expires with the collection of
the tax of 1871, which on personal incomes arc
assessed this month. #M
The public mind is not yet prepared to apply
only the key to genuine revenue reform A
few years of further experience will convince
the people that system of national taxes
which rests the whole burden of taxation on
and not one cent on property or
income, is intrinsicaly unjust. While the ex-
penses OF the national government are largely
caused by the protection of property. it is but
right to require property to contribute to their
payment 1t will not do to sag that each per-
son consumes in proportion to his means. This
is not true. Every one must see that the con-
sumption of the rich does not bear the same
relation to the consumption of the poor, as the
income of one does to the wages of the other.
AS wealth accumulates this injustice in the
fundamental basis of our system will be felt
and forpad ha att antin Of
Then an income tax, carefully adjusted with
proper discrimination between income from
personal service and from the espionage of our
present law, will become part of our system
Just as such law as proposed by Sir Robert
Peel, after disuse for % years, was the basis of
revolution in the tax system of Great Britain
II these changes in our internal revenue laws
are made it will reduce internal taxes 1871, 000,-
900, or from $126,000,000 to 1874, 600 But
this reduction of taxes will be accompanied by
a reduction of our expenditures of not less than
So, 100000, a: if the new regulation as to the
whiskey tax should prove practicable there will
be a much greater re AUCTION.
This will leave us net loss of revenue of
$29, 900, and with margin of $21 100000
for the reduction of the tariff duties .Upon
what articles and upon what principle shall
this reduction be made l1..t
NJ Sherman reviewed at length the results
OF the repeal of the entire duty on salt, coal,
tea and coffee, and showed that if these were
Puo oA tho Aicc liSt HO Ot1er uuIleS could be re-
mitted.
Mr.. Sherman continued: 81 now came brief
ly to consider the means proposed by the Com
mlttee on Finance Instead of repeating en-
tirely the duties on coal, salt, tea and coffee,
we propose large reduction on them. We re.
duce duties on lumber, rice, lard add other arti-
Giles. The raw products on industry on which
present duties are excessive we largely add to
the free list and propose a reduction of 10 Der
cent. OF duties ON most textile and metallic fab
RIGS. The reduction proposed is $22 5O7, $50 26.
but we may fairly anticipate the lessening of
expenses and such an increase of expectation
as will reduce the losses to the revenue to S21,-
600 O00'' It5 - W.
Mr. Scott followed insupport of his amend
meut offered yesterday to make tea and coffee
free, and after an extended argument in favor
of protection ordered the yeas and nays The
question was not taken.
Several unimportant bills were offered and
the Senate adjourned to Monday. e
HOUSE,
A resolution was adopted instructing the
Commerce Committee to inquire into the ma
ture, extent and objects Of the alleged combina-
tons OF railroads, known as the Southern I'M
provement Co., designed to control all avenues
OF transportation from the oil regions to the
sea6oard to the oppression and injury of the
producing classes.
Mr.. Beatty, of Ohio, chairman of the Print
ing Committee, stated that the committee had
prepared bill providing for the permanent
printing and reporting of the proceedings of
Congress, which will save $1,000 annually,