Western Reserve chronicle. [volume] (Warren, Ohio) 1855-1921, 1872-03-27

COaSIl08 lTAQe, now aDSOlubeiy pro-
tected by our navigation laws. If the
wisdom of the protective policy is to
be tested by experience it is insisted
that 1t would be solely by the actual
condition of our country.
No doubt changes are demanded by
improving the condition of our
finances. Taxes must be reduced to
the wants of the public service; but
every industry called into existence
by our policy, every skilled laborer,
every capitalist, every city, village
and hamlet, and community of farm
ers, laborers or shopkeepers, whose in
dustry employed by reason of your
policy may demand that changes be
made with careful reference to the in
dustTy, capital and skill employed in
the development of your policy. In
| making q reduction of revenue, it
should be done to give the greatest
possible relief and do the least possible
injury to the industrial energy foster
ed by our laws. 1t has been conceded
that the worst of these taxes have
been repealed, but there still remain
special taxes which make it necessary
! to Keep revenue offices in every county
of the United States. These special
taxes are on the wholesale and retail
dealers in spirits, tobacco and beer,
and banks and bankers, and gas
/ Many of the stamp taxes are imposed
on the production of matches, medi-
cines and the like. Others are on the
sale of property, and on commercial
paper, while all involve the payment
of multitude of agents for the sale of
i stamps While productive they are
Annoying, expensive of collection and
easily evaded. If the special taxea on
spirits, tobacco aud beer can be con-
solidated with the tax now levied on
the manufacture Of these articles at
the distillery and mandatory and the
special tax on gas and bankers is re-
pealed, we can dispense with the vast
army of revenue officers, and con-
centrate the attention and surveil-
lance of the internal revenue officers
to places where whisky, tobacco and
beer are made. If we can dispense
with the stamp taxes, the whole sys-
tenn of internal taxes will disappear,
except the excise taxes on whisky,
tobacco and beer, which, by common
consent of both producer and consul
mer, are recognized as proper objects
of taxation. The taxes on the circula-
ton and desosits of National banks,
do not enter into our national revenue
system, and are rather regarded as a
fund from which to pay the expenses
of printing the notes and maintain
the system. The excess collected from
this tax over the expense may proper
ly be regaI led as a return payment
for franchise. This tax is collected
directly by the treasurer of the United
States, and should be retained. Ifit
is deemed best TO retain this tax, as
against other banks and bankers, it
may be collected in the same way,
and by the aid of the bank eXami-
ners.
In advance of a definite measure
dealing with internal revenue, I am
prepared to say, without committing
any any one else, that we can and
ought to repeal all internal taxes
except on whisky, tobacco and beer,
and to consolidate and simplify them.
The income tax expires with the COL
lection Of the tax of 1871, which on
personal incomes is assessed during
the month. Experience will convince
the body Of our people that a system
of national taxes which rests the
whole burden oftaxation on eonsump-
ton, and not one cent on property or
income, is intrinsically unjust. While
the expenses of the national govern
ment are largely caused by the pro-
lection of property, il is but right to
require property to contribute to their
payment. 1t viii not do to say that
every person consumes in proportion
to his means. This is not true. Every
one m ust see that the consumption of
the rich does not bear the same rela-
tion to the consumption of the poor,
as the income ofone does to the wages
of the other. AS wealth accumulated
is the fundamental basis of our system,
it will be felt and forced upon the
attention of Congress. Then, an
income tax carefully adjusted, with
proper discrimination between income
from property and ineJme flOm per-
sonal services, and freed from the
espionage of our present law will be-
come a system. If these changes in
the internal revenue laws are made it
will reduce internal taxes S31. 500, 900,
or from S125, ,000, 900 to $94, 500, 900; but
this reduction OF taxes will be accom-
panied by reduction of expenditures
of not less than s., 500, 900, and if the
new regulation as to the whisky tax
should prove practieticable, there will
be a much greater reduction. This
will leave us a net loss of revenue of
SIS, 900, 900, and with a margin of
S2l, ,000, 900 for the reduction of the
tariff duties.
Upon what articles and upon what
principle shall this reduction be made2
to repeal the duties on coal and salt,
articles largely produced in this coun-
try. The aggregate duties collected
on these articles were, on coal $685. |
375 salt 81 ,175, ,5S7 tea s., ,322, ,994 !
coffee $10, ,969, ,09S T; in all 81, COG, ,056, !
or just the amount we are able to re-
peal. Why single out these articles
for special repeal9 The whole guam
tity imported last year was s., ,3Sl los. !
The amount of bituminous coal pro-
duced in this country last year, is es-
timated at fifteen million tons, and
of anthracite at nineteen million |
tons, or an aggregate of thirty-four
million tOns. so that imported coal is |
less than one or 0ne-half per cent. of |
that consumed. The whole benefit |
of this repeal would inure to the bene- |
fit of Nova Scotia, and not to any |
part of our country. The cost of pro-
ductiOn of domestic coal fixes the |
prices, and the only effect of the re-
peal will be TO raise the price for for |
eign coal, for the benefit of Nova Seo- |
tia miners and land owners, or more !
especially for the benefit of American |
speculators in Nova Scotia. Ii will |
not appreciably inure to the benefitof |
our consumers. To the precise extent |
that the repeal increases the impOrta-
ton of foreign coal, it will diminish |
the mining of our own. Finding our
vast market open and free to them,
they will force the production |
in Nova Scotia, and divide the profits |
between their land owners, their mi |
ners and their sailors. Our industry /
will be diminished to some extent, /
without benefiting our consumers. /
Again, free coal win have the same
effect upon Nova Scotia that the
reciprocity treaty had on Canada. 1t
will give them the benefit of our
markets without the burden OF our /
taxes on home producers, 1t will /
make the annexation of those kindred /
countries impossible. Again, il is |
gross injustice not only to our miners
but to our shippers. By the settled |
policy of our navigation laws, no for
eign vessel can carry our coal from
pbfIiIaIphfo tn RosfoY1 h11t fhax oar,