The New York herald., 1878-01-14
PROSPECTS FOR THE INCOME TAX
Radical Reforms in the Indian
Service.
FROM OUR SPECIAL CORRESPONDENT.

Internal aEd external tax laws was referred by tho
committee to a subcommittee consisting ol Messrs.
Fernando Wood. OF New York; Randolph Tucker, of
Virginia; Randall Gibson, of louisiana; Burchard,
OF Ilinos, and Banks, OF Massach usctis These
selected fairly representing all tho sections and tho
diverse interests and industries OF tho country. When
they began their work they again divided Into Two
sub committees--ope consisting OF Mcssrs. Wood,
Gibson and Banks, undertaking tho tari, while to tho
other, consisting OF Mcssrs. Tucker aEd Burchari,
was assigned the internal revcnua
AT this timo these two sub committees have not vet
met together to compare their work. 1t Is Understood
TO be the wish Of the minority OF tho committee and
OF It's chairman tha. tho report the House shall
contain q thoroughly matured and homogeneous
scheme for raising the revenue required, and the
sire o tho most active and influential members Of the
committee Is to ask the House to vote on as a whole.
Mr. Wood speaking doubtless for at least the aoriy
OF the committee holds that the question before It IL
how best and most securely 10 raise The
quircd by the government and with tho least injury
to or interference with Industry commerce. II rs
generally conceded that tho present an and informal
revenue laws arc IN many respects crude complicated
contradictory and oppressive. Ono aim OF tho sub.
committees has icon, therefore, TO simplify and
cheaper collection and to. remove needless burdens
upon Industry and commerce. Moreover, the pres.
laws grown up by ,inkering amendments dur
ing along course OF years, It has been found mpossl-
bic to attain .no objects above mentioned by still
further aeratons hence the committee will produce
entirely new tariff and tax system a substitute
tor that now In force. II does not follow that they
intend 10 make radical changes the contrary rs tho
fact The members OF tho committee have been
full not to interfere ipjuriously with industries and
have, IN iac kept In mind oil the time that sud
den changes, a direction which would seem 10
them wise might DO injurious, and are therefore, un-
advisable A thorou oushly CONSERVATIVE spirit guides
the committee.
For instance, the now tarin bill Will probably lovy
duties four hundred articles instead OF
us In tho present tar. This a large reduction,
but Great Britain raises nearly great revenu no
from tariu less than twonty-nve articles and the
committee onexanining tho subject discovered that Of
tho 500 articles dutiablo under present
brous tariH great yielded little OF no revenue
ans good any others ought to DO tree encour
agement or many OF our most important industries,
which suffer and cannot compete in the worlds mar
kcts because Of tho heavy duties levied chemicals
dies, H., necessary to them. The committee hold
hat by repeating duties in such cases they will ena
bio a revival OF industry without any further
lowering OF wages, because the manufacturer Is Gu
ablcd to sell his surplus abroad by the cneaponiug OF
his raw materials he will no longer try " put down
wages The great enlargement OF the free list Is there
fore regarded as movement In the interest OF work
ingmen and operatives
From the implication OF the .ariG-layng the duty
In every only iorm and that Wherever poss
bic specinc-the committee expect an economy in the
cost o collection and the stoppage Of revenue frauds
which are SO injurious to honest merchants also
u great convenience to the govesnment officers as
we'll as the merchants. Tho same is truo OF the in
ternal taxes.
As TO the precise shape which tho tariff will take OF
course L0thng IL yet known. 1t IL not certain
that tea and coffee will be again mado to pay duty.
Mr.. Wood. who has labored very industriousy tho
new Tariff bill, keeps his own counsel; and OF course
the bill has still to pass the ordeal OF tho committees
scrutiny, and may suffer changes there.
Messrs. Tucker and Burchard are agreed upon con.
siderable reduction In the tax whskey tobacco
reducing whiskey from seventy TO sixty and perhaps
even nifty per gallon They show that tho lover
the tax tho greater the has been tho gov
ernment, and this has been repeatedly proved. As
tobacco, Is represented that the amount OF tn
this product and the manner IN which II s LEVIED
now much manufactured tobacco TO be sent
abroad, which under a more juiicous system would
be manufactured here and sold abroad, giving this
country a double advantage and profit
Finally comes the proposition for now income
tax. There is doubt that tho sub. committee Will
report income tax TO the full committee part of
the now system II Is urged that this is only
way TO equalzc tho burden OF taxation, and 1t Is un
doub,cdly fact that the Western and Southern men,
bcrs OF the House demand the re-estab shmcnt OF an
income tax The committee will Of course desire tho
passage oi,s b and 1t will be apt 10 take into con-
sidcraton every measure which win favor for the
whole bill There but little doubt that impos-
tlor OF an ncomc would quiet much opposition 10
the other parts of the bill In the House.
or the committee, Messrs. Wood, Gibson, Kelley
and Banks believed 10 be opposed to the income
tax; Mcssrs Tucker, Robbins, Harris and Barcnard
favor II. There remain Mossrs. Sayicr, OF Ohio;
Pheips OF Connecticut, and Garfield whose opin ions
arc not known. There already or three bills
before the House, Independently laying an income
tax and on the whole IT Is almost certain that tho
committee will conclude II prudent 10 embody such
measure In their DILL
Of course the most Important question OF all is,
Can the bill pass both bouscsy Party discipline has
so utterly disappeared that this question cannot be
answered beforehand. No one has yet undertaken to
poll either house on the subject. Mr. Wood expects
to carry his bill through the House OF Representa-
tives--gainng as many republican votes as no may
lose democrstc-and there Is reasonable belief that
he u right II has been suggested that the commit
tee before reporting It's bill shall ak for of
the democrats OF both houses upon II, so as to favor
united action, but II Is admitted that tho caucus nt
this has gone out oil date. The democratic party
votes as each man peases, and so do the republicans
The committee are constantly receiving quantities
OF COMMIT municatons, petitions aud inquiries IRON per-
sons Interested In the changes WHICH 1t is supposed
will be made, and there is no doubt tha,
when tho bill Is reported to the House
there will be a severe pressure members to dc.
stroy II by petty alterations for the advantage OF ind
vdual interests SONG Of the loading members Of The
committee are disposed to take the ground tnat tn,
bill ought TO stand fa as whole and appeal "a
their riopds In both houses to help tncm through
this ground. But II Is feared that when tho Ieaiinl
manufacturer IN a Congressional district deman d,