The daily gazette., 1881-07-27
Abolish The Interna, Tax.,

Abolish The Internal Ia x es.
From the American.
Nothing in the whole subject
national finance is now of more ser
ous Importance than to consider OF
iuture policy as to the amount an
sources OF revenue. We must pre
sently decide two quesIions:- Il
Shall we continue to collect al
enormous annual sur plus? and (2)
not, shall we abolish the internal re
venue taxation, or reduce the dutie,
on imported goodsp For the las
fiscal year of which we we have full
reports, that ending June 80, 1880 ii
spite of lavish expenditure In man,
directions, and in spite OF the enorm
ously increased payments on "arrear
OF pension" account, considerabl,
more than half the great sum collect
ed by taxation from our own peopl,
was surplus, and was used to tax,
up bonds who's payment was neither
due nor desired by the holders. Arc
Tor the fiscal year just closed, out oil
the gross amount of internal revenue
collected, (say $33 ,o00, ,OOO) scarcely
less than three-fourths has again
been surplus and has been similarly
applied.
such excessive collections of re-
venue, whatever we may think as to
their necessity heretofore, are no
longer defensible. They are not
essential to the maintenance of the
public credit, nor are they required
to meet any actual obllgat on Of the
debt.
When it is considered that the whole
bonded debt, on October / next, will
De out oO per cent. more than this an
ticlpatcd ten years. reduction. (It
will then stand at 81, $50, 229, 800, ac-
cordlng to recent statement), the
pational banks may well begin to con
slider how they will stand, at the end
OF decade, with regard to their circu.
lation.
An analysis of the estimates OF the
treasury for the fiscal year that has
lust begun will show that, unless the
present rapid reduction of the debt is
insisted upon, there would be no great
oifhculty in squaring the account of
income and expenditures, with the
whole OF the internal taxation omitted.
MI. Sherman estimated that the wear
from July l, 1881, to June 80, 1889,
would show the following =
Total ofrevenues ......... $3.50, ,OOO. 000. OO
Total of expenditures. 259, 9e4 $50 Os
showing a surplus off,. 500, 0,0S5, 1872
A little less than one half of this
surplus ($41, ,659, $40. .20) he assigned to
the sinking fund, under the act of
1862 and 1870. For the collection of
the additional $4s, 445, ,277. 70 no iusti-
hcation whatever is attempted.
NOW while it appears that the esti.
mated revenue from the internal taxes
Hl3O, ,000, OOO)is greater by nearly for;v
millions Of dollars than the anticipated
surplus, these two amounts can. bv IN.
exercise Oh the economy which ought
TO characterize the national manage
ment, he brought together without
dihcuity, and still leave small sur.
plus to be applied to the debt, Thus
the estimated customs receipts are
placed too low (S195, 900, ,OOO). With
the present prosperity of the country.
they have been, and will continue io
be, considerably greater. It is safe 10
add 6,000, 600 to this item and verv
probably twice that increase will he
realized. On the side of the expenses
there are considerable reductions in
the estimates. The interest on the
public debt has been reduced. bv the
recent refunding operations. nearly
fifteen and half millions ($15,411..
1874
Ii the present rate OF debt reduction
is 10 be continued, it will be but a COM
paratiyely short time when there will no
longer remain basis OF national bonds
ior securing their circulation. In the
last annual report of Secretary Sherman.
ne not only recites with cheerful salts,
faction the surplus applied to the reduc
tlon Of debt in the fiscal year lust pre
ceding, and the amounts which would
oe available for the sane purpose in
1851 81, and 1882, these amounts be-
lug In All over two hundred and fiftv.
iour millions of dollars ($254 ,OOO. .OOOb
put ne lays out the work OF the sinking
iuhu LOT ten years to come, and sbovs
that (lnelusive of 1SS1-S2), this will
iiquidate S520, ,904 TOT SO of The nrine;
pal OF the debt! In ten years from the
present date so vast sum as this will
pave been abstracted from the princ,nai
OF the bonds by the sinking fund alone
as mr.. Sherman's programme purposes
and this is in reality but half, for with
an average surplus of over 500, 600 600 a
year as now afforded by the reyenues II
Is obvious that the reduction in ten
years will be nearly $1,000, 0,0OO, 900,
III the internal taxation were abolished
the cost Of Its collection, which amour,
ted in 1880 to s.. .6S7, ,105.1o would be
entirely saved, with enough more in the
expenses OF the Department Of Justice.
on Its account, to make the total of tbe |
item 100000. Here, alone, In these
four particulars, one of revenue. and
three of expense, there is $24, 600 GOO to |
$29, 100000 accounted for out Of $40
600, 900, and no careful and honest Gift
zen need have difficulty In poi ting ont
where as much more could be saved in
the departmental expenses, thus per-
mitting the entire abolition OF the inter
nod nal revenue, and leaving perhaps $l0,-