National Republican. (Washington City (D.C.)) 1872-1888, 1874-06-27
EREE TRADE.

The opposition papers derive much en-,
couragement for their free trade theories in
the late speech Of General Butler. The
Louisville Courisr-Journal assumes thai
the only way to prevent the peo-
pie, being cheated by the smugglers.
and to prevent honest men, merchants,
from being black+mailed, is to abolish all
tariffs and adopt free-trade. The Courier
Journal seems to have forgotten that In
such an event we should be obliged TO re.
sort TO direct taxes in order to support Gov
eminent, and that the evasion of the inter-
nal revenue tax is or was even more COM
mon than that of the customs duties. The
moiety law prevailed in the collection Of
the internal revenue from 1862 till 1866,
when some patriotic Congressman fancied
that informers were getting rich too fast
and changed the law, grading down inform
ers' shares very much upon the same
scale that has now been introduced into
the customs laws. About the same time
the tax on whisky was raised to two dol
lars on the gallon. The result was that all, or
nearly all, the informers (officers included)
sold silence and blindness to the distillers
and rectifers. and very soon the article
which was branded ''tax paid" to the Gov
eminent at two dollars the gallon was plen-
tiful in the market at ninety cents. Had
the moiety system been preserved, with
prompt settlements, the Government would
have been able to have collected the tax
As it was, the amount actually paid into
the Treasury under the heavier rate OF
taxation was less than that realized from
the lower. The effect was much the same
upon the income, stamp. legacy and success
sion, gold and stock sales, bond and stock
dividends, &c. Large portions of these
were kept back, as may be readily seen by
a careful comparison of the amounts of in
come reported by the census, making q
liberal reduction for exemption, with those
reported and paid upon to the Internal
Revenue Office. The disparity is quite suf.
fcient to show the conscientiousness with
which men make returns upon oath which
they are bound again still further to verify
by the payment of taxes. We.are left to
conclude that the returns given to the Gen.
sus-taker are in q spirit of braggadoclo,
while those given, under oath. to the as
SCISSORS of internal revenue for the same
year are the actual bona yfds profits upon
the transactions of the year.
These illustrations will convince the
Courier Journal that its theory in regard
to free trade Is all wrong; that the effect of
its adoption would only be to transfer the
frauds now perpetrated through the GUS
toms department to that Of direct taxation.
Again, It will be observed that the free.
trade theories of the opposition press are
utterly impracticable in the present condi-
ton of our finances and of our industrial
interests. A revenue tariff is indispensable
to our resources, while protective discrin-
nation affords encouragement to many
branches of manufacture that are now
struggling for existence. Free trade i'm
plies the throwing open of our markets to
the nations Of the world, regardless of any
reciprocal action in our favor on their part.
This Is something which we are at present
in no condition to afford.