Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1878-12-06
Balances sSt96Ssls, ssi6.tlM6 s6Ai,fls, j,
INTERNAL REVENUE BUREAU.

Balances sSt96Gl2i s3i6,tSl,ol6 s6ti,f9iS,
INTERNAL REVENUE BUREAU.
The annual report of the commits
Sioner of internal revenue says that the
heavy falling of III 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 II
of the states the internal rev
nue. laws have been enforced without
serious difficulty or obstruction; there
has been II commendahle spirit exhibit
ed on the part of manufactures and
dealers to observe the law, and it is be-
lieyed that the tax ON distilled spirits is
now being collected with few frauds
and less loss 10 the government than III
any time since the establishment of the
internal revenue system. The commits
sioner reports, however. that there is
great loss 20 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, III certain
times, arc lawfully used iii the produc-
ton of brandy from apples and peach
cs; but | am convinced that n large
portion Of the stills have been and are
used III the Illicit manufacture Of spir-
It's. Fart Of the spirits thus produced
has been consumed III the immediate
nelghborhood; the balance has been
sold and distributed throughout the adj
iacent districts. This nefarious business
has been carried on, as rule, by dc
tcrmined set Of men, who in their var-
GUS neighborhoods, league together for
defense against the officers of tho law,
and ut given signal are ready TO come
together with arms III their hands to
drive the officers of the internal reve-
nue. out of the country.
With reference to the proposed re
ductlon Of the tobacco tax, the commits
sioner argues that the reduction of the
tax one-thirl, rs proposed 10y the bill
now pending, would inevitably result in
corresponding reduction Of the reve-
nue.. lie also states that an exnmina-
ton Of the market quotations Of tobac-
60 Tor 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-
tinucs:
IL" II is obvious that the price Of the
tobacco used hy our manufacturers il
affected by the foreign demand for the
surplus product. A small accumulated
surplus, light crops, and nm 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 4 depression
of prices of all grades; and these re-
suits would be produced whether the
tax on manufactured tobacco remain
ed at Fl cents, or should be reduced to
~ 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 50 per thousand.
This would be equivalent to reducing
the tax on each cigar ] mill. It is in
credible that such reduction can af
feet the retail price, or in any degree
operate tostimulatc the consumption of
cigars, and, in my opinion, the reduc-
ton would be an absolute loss of reve-
nue., without any compromising advan-
tage.
II j. 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 a single taxpayer has yet come for
ward as such to demand ms reduction.
The whole movement III my judgment,
involves an absolute sacrifice Of $l1,
ODO,00O OF revenue, without reasonable
prospect OF benefit to the producer, or
reIiefto the taxpayer. The agitation OF
the question Of reducing the tax ON
manufactured tobacco last year para
lyzed the trade during the time the nm
certainty prevailed. Many manufaC-
turers We're compelled temporarily to
suspend operations, and large numbers
of workpeople were thrown out Of en-
The tax ON manufactured
tobacco from December, 1877, TO June,
1873, showed falling of AZ compared
with the corresponding months Of the
preceding year Of $l,9i7, 04l, while I'M
mediately upon the adjournment Of
congress, when il became known that
the tax would for a time remain undis-
turbed, the trade began to recover the
receipts from the tobacco tax for July,
1878, showing an increase Of S5iG, AZ
over the corresponding month Of the
previous year, ! have no doubt that
similar results would follow prolonged
agitation Of the subject this year. II.
therefore, appears to be desirable that
Whatever action il had by congress il
regard to the proposed change Of the
tax, should be had az early AZ possible
in the interest Of the revenue as well ~
Of the manufacturers, their Thousands
Of employees, and the producers, to all
81 whom continued suspense must
pr0vq lniuri0Ilg