The Republican. [volume] (Oakland, Md.) 1877-current, 1878-12-14
Report Of Commissioner Raum of the In.
ternal Revenue Department.


The annual report of the Commissioner of
ing off in the receipts from taxation has ceased
and that the receipts for the current fiscal
year have thus far shown an increase.
The Commissioner reports that in major
lty OF the States the internal revenue laws
have been enforced without serious difficulty
or obstruction; there has been a commend
able spirit exhibited on the part of manufac-
turers and dealers to observe the law, and it
is believed that the tax on distilled spirits is
now being collected with fewer frauds and less
loss to the Government than at any time since
the establishment of the internal revenue sys-
TEN. The Commissioner reports, however
That there is great loss to the revenue in the
South. He says:
" In the regions of country named there
are known to exist about 5000 copper stills,
many OF which, at certain times, are lawfully
used In the production of brandy from apples
| and peaches; but am convinced that large
portion of the stills have been used in the
Illicit manufacture OF spirits. Part of the
| spirits thus produced has been consumed in
the immediate neighborhood; the balance
| mas been SOLD and distributed throughout the
| adjacent districts. This nefarious business
mas Deen carried on, as rule, by determined
SET OF men, VINO, IN their various neighbor-
moods, league together for defense against
the oincers OF the law and are ready to come
together with arms in their hands to drive
the officers of the Internal Revenue out of
the country"
| win reference TO the proposed reduction
OF the tobacco tax, the Commissioner argues
that the reduction of the tax one-third, as pro-
! posed by the Dill now pending, would inevita-
| bly, result in corresponding reduction of
the revenue. he also states that an examina-
| ton OF the market quotations of tobacco for
series OF years Tails to show that the tax on
| manufactured tobacco has had any depressing
effect on the market price of leaf tobacco.
he continues:
at is obvious that the price of the tobacco
used by our manufacturers is affected by the
| foreign demand for the surplus product. A
small accumulated surplus, light crops and an
active foreign demand will increase the price
| OF all grades, while large accumulated stocks,
! heavy crops and a sluggish foreign demand
will result in depression of prices of all
| grades; and these results would be produced
whether the tax on manufactured tobacco re-
NAMED at "A cents, or should be reduced to 16
cents per pound, or If the tax were entirely re-
moved The bill before the Senate proposes
a reduction of the tax on cigars from So to IS
per thousand. This would be equivalent to
reducing the tax on each cigar | mill. 1t is
incredible that such reduction can affect the
1 retail price, or in any degree operate to slim
ulate the consumption of cigars, and, in my
| opinion, the reduction would be an absolute
loss of revenue, without any compensating ad-
vantage.
ut is to be noted that the agitation for the
reduction of the tax on manufactured tobacco
does not come from the consumers, who alone
pay the tax. Not a single taxpayer has vet
come forward as such to demand its reduc-
ton. The whole movement, in my judgment,
involves an absolute sacrifice of 81, 900, 900 of
revenue, without reasonable prospect of bene-
fit to the producer, or relief to the taxpayer
| The agitation of the question of reducing the
tax on manufactured tobacco last wear paral-
yzed the trade during the time the uncer-
tainty prevailed. Many manufacturers were
compelled temporarily to suspend operations,
and large numbers of workpeople were thrown
out OF employment: The tax on manufact-
ured tobacco from December, 1877, to June,
, 1875, showed falling off as compared with the
corresponding months of the preceding year of
Sl,947, O4l hileimmediately upon the adjourn
ment of Congress, when it became known that