The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1874-12-24
The Cotton Tax.

The Cotton Tax.
At every session of Congress, scheme Is
tdevisell.to' refund.the cotton tax levied and
collected from the:south, bnt there has been
much tfoubleSin agreeing upon basis of set
dement, particular, sas toswhoml the money
should be paid. - The taxehas beer declared
unconstitutional, and the money collected un-
der it should certainly be returned to this sec
ton of the country especially as it was exacted
from the producers at a time when our whole
people were greatly impoverished by the results
of the war, which was an unusual hardship
imposed by the government as penalty. AT
least, the cotton tax was always so regarded by
its trainers and supporters, and we hazard
nothing in saying that such an unjust levy
could never have been made upon any other
portion of the Union.
1t seems to be settled question, however,
that this money must be refunded to the South
ern States, and the prime difficulty is to agree
upon a plan for its restoration. Certainly,
equal and exact justice, demands that the
money should be returned to the producer'
who actually paid the tax for the most part.
But the ordinary practice of buying and SELL
ing cotton in the interior, where tho great bulk
of the cotton crop is generally bought from
the producer was to deduct the amount of the
tax from the market price, and leave it to the
merchant to make settlement with the repre-
sentatives of the government. This practice
left the proof of payment in the hands Of the
interior cotton buyer or the factor, and it can
not be expected that proofs will be furnished
by them, without due compensation, to enable
the farmer to assert his rights in the premises.
Hence, there is necessity for an understand
ing between all parties before any general
measure is devised by Congress. Several years
ago, an attempt was made to obtain this gen.
eral understanding between the merchants and
farmers, with view Of securing the enactment
of law to refund the cotton tax at all early
day The operation of this plan Involved
heavy commissions in favor of the agents, and
was regarded as unsatisfactory in many partic-
ulars. We do not know that this scheme has
been abandoned, but it does not possess much
vitality at the present time, and other measures
are being devised for the restoration Of this
enormous sum to the Southern people, amount
ing to many millions of dollars in the aggre-
gate.
The latest scheme to accomplish this desira-
Bile object was introduced last week by Con-
gresham VIM. 4. Smith, of North Carolina,
who proposes bill to provide that the money
collected from the South as a tax on cotton
shall be appropriated to pay the debts of the
Southern States 1t is not intended to pay the
debts in full, but directs the Secretary OF ihe
Treasury and the Attorney General to confer
with the creditors and agree upon compro-
mise. The money paid as cotton tax by the
people of any particular State is to be devoted
to the extinguishment of the public debt of
such State. When the amount will be INSULT
cient to discharge the entire Indebtedness of
any State, it will be applied to debts of the
oldest date; and where there is u surplus re-
naming, it will be paid over to the State a"-
thorities for free school purposes.
While this plan is not entirely free from OBJ
lection, we are inclined to favor the scheme for
many reasons. 1t secures an equitable distrl-
button of the money, and conters its benefits
upon the entire people by liquidating the pub
lie debts, enabling them to enter at once upon
a new career, untrammeled by obligations of
the past Such would be the case with South
Carolina, whose condition would be materially
improved by an early and definite settlement
of her public debt, thereby relieving the tax
payers of frightful incubus i'll the way of
interest, which now reaches the enormous sum
of 81 $40, ,lSS reported by the State Treasurer
as past due The adjustment of the cotton tax
can never be agreed upon while there are con-
hictng interests seeking to gain any advantage
by special legislation, and It's the plan of Con-
gresham Smith is to operate equally and bene
ficially upon all parties, without detriment to
any class of individuals, we think it entirely
worthy of serious consideration by the law
making power of the land.
80