National Republican. (Washington City (D.C.)) 1872-1888, 1878-02-19
Taxafian afTahacca.

Of Representatives on the bill then pending,
"to further protect the sinking fund.- and
provide for the exigencies of the Govern
ment," in which he took the ground that to
provide for the exigencies of the Govern
ment by rcimposing war taxes in the midst
of the general depression that then prevailed
was rs ill-judged as it was inopportunc. He
then confidently predicted that instead Of
replenishing the revenues II would deplete
them, and that the Administration would
meet the Forty-fourth Congress with a de-
mand for further increase of taxes to sup
ply deficiencies. Mr.. KELLEY has recently
written the. following letter on the subject
Of reduction of the tax on tobacco, which
win be read with interest
WAsHINaToS, d. C., Feb 9, 1873.
| DR.. T. r. Spence, Cincinnati, Ohio:
MY DEAR DOCTOR: The feeling with which
| read yours Of the Both ultmo, requesting me
to advocate reduction of the tax on tobacco,
was In entire sympathy with that In which
you had written.
sec the destruction Of the tobacco trade,
including the tobacco growcrfas plainly rs you
do. see, too that the proxmate cause Of the
ruin, or rather the instrument by which 1t is
being effected, is excessive taxation. In other
words, that the relation which taxation bears
to the decline will be accepted almost, IL not
absolutely universally, as the cause, while be-
hind 1t is an influence which produced this
excessive taxation, and still impels the Gov
eminent to cry, "Givc! give"
Low grade smoking tobacco, which con-
snmcd stems aud sweepings Is now an impos-
sible production, as the tax imposed on 1t Is IN
excess of the price obtainable for il. 50, under
the new tariff, should 1t become law, cheap
sugar and syrup, the sole sweetcning known
| to the poorer among the aboring classes, can
no longer he produced; yet those who thus
deprive the poor of their simple luxuries pro-
pose to make up the deficiency in the revenue
thus created by imposing taxes on tea and
coffee, the harmless stimuants Of the impov-
erished laborcr and farmer
| When the changes in the internal revenue
laws to which you refer, reductions OF taxes
on spirits and tobacco were made and were fol.
lowed by increase of revenue the condition Of
the country was ia striking contrast with its
present condition. We were then receiving
annually over 100000 immigrants, most OF
whom were in full life, and almost
every family of whom brought some CAPT
| til with them to enable them to engage
at once in the consumption Of our products
and the increase Of their production. The
eye Of enterprise was wide open, and energy,
Briarious like, stretched forth its hand in
every direction to devclOpc latent resources of
the country, and TO thus augment the re-
sources of the Government. Under these cir
cumstanCcS All increase of consumption must
take place, and even inordinatc taxation could
not absolutely restrain it. To reduce the scale
of taxation, then, was to stimulate cOnsump-
ton and increase the public revenues.
| But look at the contrast to all this presented
by our present condition. Nothing Is so I'M
welcome as u highly-skilled immigrant, and
organizations are being effected all along the
oil Of
sometimes by another to induce our uncm-
! played population to seek homes elsewhere.
The abhOrrcnt and apparently exploded doc
| trines Of Nautilus are again coming into vogue
as original conceptions, and our pseudo poiti-
cal philosophers must, in their secret con-
sciousncss, regard the loss of so many scores of
ablC-bodiCI working people by the wreck Of
| the Metropolis rs a national blessing.
| You say that "thG diminutiOn of the re-
ccipts of revenue from whisky aud tobacco
is occasioncd by the fear Of the future, aud
| the discussion Of the question of the rate Of
taxation, which leads dealers to work Off their
stocks that have accumulated on their hands"
| This is true. You thus indicate the elephant
on whose back the world rests, but what is the
turtle ON which the elephant stands? In other
words, what causes the fear of the future
Why is 1t that retail dealers, not Onlybin your
branch of trade, but in all others, are afraid to
lay in any stockr Why were the reduced
taxes ON spirits aud tobacco restored to war
rates after six years of pcaCey
1t was because Germany, by tho demonetZa-
ton of silver, then the exclusive metallic
money Of that country and prohibiting the
circulation Of notes Of less denomination than
S25, which smaller notes then constituted the
bulk OF its paper currency; and the United
States, by also dOmUnctiziug silver and con-
tracing the volume Of lcgal-tcndor money
which had been in circulation, and to which
prices were adjusted have produced steady
and lOng-COntnued reduction of prices or
Shrinkage Of values not only in Germany and
the United States, but in all countries involved
in commercial relations with them. This
shrinkagc is still going on. 1t must go on I'M
til these two nations shall rcmOnetize silver,
we repeal our resumption act, and Germany
authorizes the issue Of paper Of less dcnOmina-
tiOn than SO, or until the commercial world
shall be involved in commercial crisis and
endure financial crash, the extent of which
history gives no promontiou. If the latter
terrible alternative Is forced, 1t will demon
strate the crime against the people committed
by governments when they arbitrarily con-
tract volume of money to which prices have
adjusted Themselves, and under which public
and private debts have been contracted.
Meanwhile, as taxable property dminishes
in value, one of two things must happen-thc
rates of taxation must DO increased, or pay
mcnt of interest on the public debt be sus-
p'hu'u' .AHnut CScupc lhlS 'oHVlusloH, anu
1t is a terrible alternative to present to man
who loves his country and would preserve its
honor, and who, claiming not more than com
mon sympathy with his fcllow-citizens, would
save them from want, insanity, suicide, or the
horrors of confessed paupcrsm, and avert the
herding Of intelligent and hitherto industrious
and independent citizens in houses of cor
rcction, alms.houses, or other penal or clemos-
mary institutions.
| In conclusion of n communication already
too long, let me say that, whenever our fnau,
cial magnatcS the Administration, and Con.
) gress, will consent 10 the revival of general
production by permitting the people to use an
adequate number of plows, looms, spindles
dollars, and other implements Of trade, taxes
can be reduced. not only with relief to tho
! people, but with the assurance of increased
public revenues, the result Of the restored
ability of the people to purchase and consume
taxable and dutiable commodities.
Yours very truly,
VIM. ID. KELLEY.
We learn from the Petersburg, (Nn.) Post
| that ha Rnnuhlirnus Of that al b,ld n naa,