The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1878-01-29
fFor the Dispatch.]
MT0haccO Question"

The tobacco trade OF Lne country Is again
seriously agitated in all OF its varied inter-
ests-this time from circumference to centre.
Why is this? And is there no remedy
against such repeated agitations as have at
times almost, and at present utterly, pros
trated a trade Of such vital Importance as
all concede it to be? To the first / answer
that it is owing almost entirely to its system
Of taxation, and will ever be occurring so
long as such system exists.
It lis claimed to be q tax imposed only
upon the consumer and not upon the man.
uiacturer, and, therefore, so long as the
consumer does not complain, the system
and rate are just what it ought to be. l
do not admit this, and believe that the real
experiences Of those engaged in the manu-
facture of the article must controvcrt 1t, en-
cept some who favor it as q sure road to
monopoly.
It is true that in the end it adds to the
cost to the consumer, but the system i'm
poses upon the manufacturer the payment
OF the tax before he can remove the goods
from his factory, either on sale or to seek
market for consumption; therefore, 1t APP
pears clear that the burden falls upon the
manufacturer, whose experience IS Often
times ruinous in the returns received from
the additional risks of taX-paid and interest
thereon. "
Again The whole trade OF the country,
by the present system, is forced to keep its
supplies-at times more or less large-of
such tax-paid goods; and l contend that
when purchases are thus made with lavish
credit on the tax, rs well as cost OF the artl-
Gle, it will inevitably run into an oVer-credlt,
and consequently over-trading, proving
strain upon good and sound merchants, and
tot h;,,1, al NJ nhun1nn-
ing the trade altogether.
Again: The article thus disposed through
out the country, very naturally causes hold
ers and creditors to become alarmed at any
suggestion Of, or motion for, change in the
rates of tax, by which they may lose, and
trade becomes at once paralyzed.
I therefore asserf-what firmly believes
that the present high rate OF taxation lnl-
posed by the Government upon this article,
before It's removal from place OF manufac-
ture, tends to bankrupt many engaged in
the trade, and will inevitably run the whole
trade into the hands Of q few monopolists,
thus seriously risking remuneratlng prices
of the leaf to the planters:
Now, what is the remedy? 1t Is plain
that there must be a low rate Of taxation to
enable the trade to be handled with less
capital, or. if the Government must impose
i high rate upon it as an article of luxury,
then let it adopt well-regulated system
of 'sbonded' facilities, with proper safe
guards against frauds, &C., by which the
article can be transported to any "market
centre" OF the country, subject to the tax
only when withdrawn TO go into consump-
ton, This, it seems to us, could be done
at once, and prove great benefit to the
trade in general. The buyer OF the goods
from first hands would then only have to
pay the tax when withdrawn for actual
sales, and the manufacturers would not re-
ouire so much capital to prosecute their
business. Had the s'bonded system Of
q few wears since been allowed to continue
/ have doubt it would have been gradually
perfected in all of its workings, and all Of
the obiectional features then surrounding it
could have been removed, and the Virginia
trade would to. day be upon the proud level
il then occupied. It was abandoned, how
ever, and the present system OF taX-paid
before removal adopted. From that time,
I maintain, the Virginia trade has been
gradually but surely losing ground.
It Is claimed that the g anufactories are
bonded warehouses sufficient for the trade.
They are for allpurposes Of local trade where
such exist. But what the trade needs for a
better condition Of things, for the want OF
which, / maintain, it is now suffering, is q
general bonded system throughout the coun-
try, by which tobaccos can be transported to
any market and rest free before going out
for consumption from all agitations Of tax
rate. Would it not, then, be the part OF
true wisdom for the trade to stop the strug-
gle for a reduction in the rate, which threat
ems to be prolonged one, and which has so
effectnally paralyzed trade, to ask relief from
Il IN hnpIa1 c1-c.
Temp Then would the wheels OF trade be
at once again put in motion, and no Gre
BATE on goods now taxed be necessary,
which. II not granted under reduction,
will prove a widespread disaster to the
trade generally and throw many into bank
ruptcy.
At the last reduction Of tax QS72) from
thirty-two to twenty cents q pound, it will
be remembered that the trade was nothing
like so seriously disturbed as at present,
and large trade progressed during its agi-
tation in Congress through the "bonded"
facilities we then had. By the same "act"
these facilities were few months later
abolished, and the present system OF tax
paid fully inaugurated.
how is it now? and how has it been
since? Why, all tobaccos throughout the
country. outside OF factories" are tax
paid, and "holders" Of IL are seriously
alarmed at the prospect Of reduction, and
all trade becomes at once paralyzed. There
can be no movements of goods from facto-
ries for purposes either Of Hsadyanceso or
sales y without guarantee OF the reduc-
ton, and operations are forced to a stoppage.
And it will also be remembered that
there has not been year since that the
trade has not been disturbed, and at times
very inconyeniently checked, by motions in
Congress for. a reduction or some other
ehange-al lending to keep the trade in On
unsettled and feyerish condition.
Is Now, I contend that the only safety for
g small capital and experience" against
e large capital and modern ingenuity" Is
in d bonded system; and that a high rate OF
taxation, without I. bonded privilege" is
lust simply giving the trade over to mo-
nopoly. s. s.. 90, ~ s. - IT,! d
2 Charles Minnie, the colored cadet at West
Point, has been dismissed because OF O de.