Mineral Point tribune. (Mineral Point, Wis.) 1869-1938, 1878-12-11
Balances. e3l9.e52 i21 43a6 ssl,0l6 s66S. 3ss 1871
INTERNAL REVENUE BUREAU.

O"icAso IRE $500. l,OOo w l,Oo0O
Balances. ssl9s5s.i2l ss46 1916 sses ,sss, 1877
INTERNAL REVENUE BUREAU.
The annual report of the commits
sloner of internal revenue says that the
heavy falling off in the receipts from
taxation. has ceased, and that
the receipts for the current fiscal
year nave thus far shown an increase.
The commissioner reports that in a
majority of the states the internal rev.
nue. laws have been enforced without
serious difficulty or obstruction; there
has been commendable spirit exhibit
ed on the part Of manufactures and
dealers to observe the law, and it is be.
lieved that the tax on distilled spirits is
now being collected with few frauds
and less loss TO the government than at
any time since the establishment of the
internal revenue system. The commits
sioner reports, however, that there is
great loss 70 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 produc-
ton Of brandy from apples and peach
es; but am convinced that q large
portion of the stills have been and are
used in the illicit manufacture Of spir-
its. Part of the spirits thus produced
has been consumed in the immediate
neighborhood; the balance has been
sold and distributed throughout the ad-
jacent districts. This nefarious business
has been carried on, as rule, by a de-
termined set of men, who, in their vari-
GUS neighborhoods, league together for
defense against the officers of the law,
and at given signal are ready to come
together with arms in their hands to
drive the officers Of the internal reve-
nue. out of the country"
With reference to the proposed re-
duction of the tobacco tax, the commits
sioner argues that the reduction of the
tax one-thirI, as proposed by the bill
now pending, would inevitably result in
a corresponding reduction of the reve-
nue.. He also states that an examina-
ton Of the market quotations of tobac-
co for Il series of years fails to show
that the tax on manufactured tobacco
has had any depressing effect on the
market price of leaf tobacco. He con-
tinues:
cit 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 for
eign demand will increase the price OF
all grades, while large accumulated
stocks, heavy crops, and sluggish for
eign demand will result in depression
of prices of all grades; and these re-
suits would be produced whether the
tax on manufactured tobacco remain
ed at "A cents, or should be reduced to
16 cents per pound. or if the tax were
entirely removed The bill before the
senate proposes 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 in
credible that such reduction can af-
feet the retail price, or in any degree
operate to stimulate the consumption of
cigars, and, in my opinion, the reduc-
ton would be an absolute loss of reve-
nue., without any compensating advan-
tage.
at is to be noted that the agitation
for the reduction of the tax on manu-
featured tobacco does not come from
the consumers. who alone pay the tax.
Not single taxpayer has yet come for
ward as such to demand his reduction.
The whole movement in my judgment,
involves an absolute sacrifice of SILL
100000 of revenue, without reasonable
prospect of benefit to the producer, or
reliefto the taxpayer. The agitation of
the question of reducing the tax on
manufactured tobacco last year para
lyzed the trade during the time the UNI
certainty prevailed. Many manufac-
turers were compelled temporarily to
suspend operations, and large numbers
of workpeople were thrown out of en-
ployment. The tax on manufactured
tobacco from December, 1877, to June,
1873, showed falling off as compared
with the corresponding months of the
preceding year Of $l,947 ,O4l, while inn
mediately upon the adjournment Of
congress, when it became known that
the tax would for time remain undis-
turbed. the trade began to recover, the
receipts from the tobacco tax for July,
1878, showing an increase Of $546,427
over the corresponding month of the
previous year, 1 have no doubt that
similar results would follow prolonged
agitation Of the subject this year. It,
therefore, appears to be desirable that
whatever action is had by congress in
regard to the proposed change of the