Evening star. [volume] (Washington, D.C.) 1854-1972, 1875-02-15
Largest Circulation in the District
The New Revenue bills Increased
Taxation Needed?

The new tax and tariff bill which will he
disposed Of in the House this week, is meet
ing with unexpected opposition, and tits evil
dent 10 must be changed somewhat before IL
can pass The owners Of distilled spirits are
making vigorous protest against taxing
the stock on hand an additional rate and de-
clare that owing To the supply in store and
the depression In business. they are unable
to secure money enough To pay It, 1t is
thought by well-infOrmed members that the
dill will be so amended to limit the tax
entirely to the amount to be hereafter man
ufactured. The tobacco interest is likewise
opposing the proposed increase Of four cents
per pound on tobacco, but IL is hardly prob
able that any change will be made in that,
as il applies only to the future manufacture.
But aside from the details OF the bill the
more general question has been raised in the
House and throughout the country as to
whether the government actually needs
thiTty-fve million Of additional revenue
1t is claimed that 10 is required principally
fer the sinking fund. and the Secretary of
the Treasury regards the law. as DO the WAYS
and Means Committee, a. compulsory. The
act, however, was passed in 1S';2, and pro-
vided that the coin revenue shall be applied
To the purchase or payment Of one per cent
OF the entire debt Of the United States with
in each fiscal year. and the interest OF
which should in like manner be ap-
piled as the Secretary might from time
20 time direct Neither Secretaries Chase.
FeSsenden nor McCuIlOch paid any attention
To this law. Secretary Boutwell, for the first
year of his administration diSregarded il,
and made no purchase Of bonds until New
York bankers sent Out "A ClamOr that his
surplus was too large ard compelled him TO
buy bonds So from fs61 TO 1859 no bonds
were purchased for the sinking fund; but
from May, 1862, To- September "a, 1873, they
were not only purchased To the amount re-
quired by law for each fiscal year. but other
bonds were bought by the surplus revenue Oh
special account 1t has been argued with
force in the dpi,8.e on the revenue bill that
all of this excess of purchases should have
been transferred 20 the sinking fund account
and that il can ne done now without yiOIat-
ing any Flaw. If this is accomplished il is
claimed that the sinking fund could
be kept intact for each fiscal year
for several years to come (even if
there il no suplUS revenue,) and without in
creased taxation. What would he thought
Of business men or corporations who
bought M their indebtedness with surplus
funds and refused 10 credit the account which
they had specifically set apart to meet a
certain pc. cent of all their obligations
Yet the government is in that precise situa-
ton. The total amount OF bonds purchased
for the sinking fund Is. I'm coin value.
fi35, az ,651. The total amount OF bonds pur-
chased outside Of that fund is. in coin value
Si65,S7T ,24s, which it will be noticed exceeds
the total of the fund, even if il be pro
rated over the seven years when no pur-
chases were made 1t is with these figures
that the argument is made that the deficit in
the Treasury is fanciei one.