The Pulaski citizen. [volume] (Pulaski, Tenn.) 1866-current, 1873-12-25
Secretary Richardson's Letter.

The secretary of the treasury has
written the following letter to Mr..
Dawes, chairman of the committee of
ways and means
TREASURY DEPARTMENT, Dec. r.
Dear Sir II have the honor to ac-
knowledge the receipt of your letter of
this date, transmitting a resolution of
the committee on ways and means of
the house of representatives asking the
secretary of the treasury to give his
reason in writing for an increase in tax
alton, and why he has selected the arti-
cles named in the communication as the
proper objects for increased taxation,
and that he inform the committee spe-
eially as to expenditures, and the con-
dition of the revenue which renders the
proposed increase necessary. In the re-
port which, in accordance with law, I
had the honor recently to submit to
congress used the following language
"ShouId there not be a revival of
business at an early day and an increase
in receipts over those of the past two
and one-half months, additional means
will be required to meet expenses.
Should such be the case. I recommend
additional taxation iudiciously laid so
as to be the least burden upon the peo-
pie and business of the country rather
than a resort to borrowing money and
increasing the public debt. On the
grounds here generally stated, that I
suggested increased taxation. The reve-
nues from customs and internal taxes
have not materially increased, and it is
apparent that no considerable augmen-
tation of those receipts is soon to be
expected under the laws now existing.
The public debt was increased by de-
mands which could not be avoided dur
ing the month by many millions. While
coin receipts are but little more than
sufficient to pay the interest on the pub
lic debt and other coin expenditures it
would not be prudent to sell gold to
increase the supply of currency. The
current expenses of the, government has
already consumed about eighteen mil
lion dollars of what has been called the
reserve, and there remains only about
twenty-six millions of dollars which can
be used before the extreme limit of the
issue of United States notes authorized
by law will be reached. The public
credit can only be maintained by keep
ing the receipts of the treasury fully up
to the expenditures for ordinary ex-
penses, for interest on the public debt
and for the purchase of bonds for the
sinking fund to the extent provided by
law. 1t is manifestly the true policy.
in view of maintaining that credit, to
levy taxes, so as to make it certain that
the required amount will be raised,
with the probability of some surplus
revenue, rather than to incur any risk
of a deficiency, which would make it
to borrow. money and thereby
the debt. In selecting tea and
coffee for taxation, am Influenced by
the consideration that the taxes on
those articles are easily collected and
not oppressive to consumers. In select
ing spirits, tobacco, gas, railway and
receipts, and express, insur-
ance and telegraph companies, as sub
jects of taxation, am governed prin-
cirally by the reasons expressed by the
commissioner of internal revenue in his
letter, already forwarded TO the commit
tee, in the following words:
"'In selecting sources for possible
7 Io-o 4oIro,. 4booo That NrrO71lH
give the revenue probably needed with
out any material increase to the present
force or any amendment to the present
system, considering that it is wise to get
public revenue with as little interfer
ence as possible with the general bust
ness of the country, and that the tax
gatherer should greet the public eye as
rarely as practicable. -
I have presented bills for increased
taxation to the committee thus early
that the subject may at once be called
to the attention of congress for such
action at as early a day as may be
deemed expedient. It should be taken
into account that the effect of any law
which may be enacted to increase taxa
tion will not fully appear for several
months after its passage and that in the
apparent disposition among the people
to reduce expenditures, the rates which
may be fixed will not produce the same
amount of revenue as would accrue I'M
der different circumstances.
I have the honor to be, very respect
fully,
WIN. A. RICHARDSON, Sec'y.