Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1882-12-05

ton. The mass of accumulated coin ha
grown so great that the vault room at presen
available for storage is scarcely sufficient Il
contain it. 1t is not apparent why it is desir
! able TO continue this coinage now enor
mously in excess of the public demand. A,
| to the silver. certificates: in addition to tn,
grounds which seemed last year to justif,
their retirement may be mentioned the effec
which 10 likely to ensue from the supply o.
| gold certificates, for whose issuance Congress
recently made provision and which are nov
| in active circulation.
| You cannot fail to note with interest the
discussion BY the Secretary as to the neces
sity of providing by Legislation some mode
of freeing the treasury o, an excess of assets
| in the event that Congress fails to reach an
| early agreement for the reduction of taxation
| l heartily approve the Secretarys recon.
| mendatioD of immediate and extensive reduc-
| tions in the annual revenues of the govern
ment 1t will be remembered urged upon
the attention of Congress, at its last session.
the importance of relieving the industry and
enterprise of the country from the pressure
of unnecessary taxation. 1t is one of the
tritest maxims of political economy that
| all taxes are burdensome, however wisely
and prudently imposed. And though
| tutTc nave always uccu auIOuS our
| people wide differences of sentiment as to the
best methods of raising the national revenues.
and indeed, as to the principles upon which
| taxation should be based, there has been sub
| stantial accord in the doctrine that only such
| taxes ought to be levied as are necessary for
| a wise and economical administration of the
government. OF late the public revenues
have far exceeded that limit, and unless
checked by appropriate legislation such ex.
| cess will continue to increase from year to
year. For the fiscal year ended June so, 1881
the surplus revenue amounted to Sl00. .000, 900
For the fiscal year. ended on the 30th of June
| last. the surplus was more than Sl45, ,00O, 900,
The report of the Secretary shows what dis
position has been made of these moneys.
They have not only answered the require
ments of the sinking fund.- but have afforded
a large balance applicable to other reductions
of the public debt. But renew the express
sion of my conviction that such rapid extin-
euishment of the national indebtedness - il
now taking place is by no means a cause for
congratulation; it is a cause rather for serious
apprehension.
If it continues it must speedily be followed
by one of the evil results so clearly set forth
in the report of the Secretary. Either the
surplus must lay idle in the treasury, or the
government will be forced to buy at market
rates its bonds not then redeemable. and
which under such circumstances cannot fail
to command an enormous premium, or the
wollen revenues will be devoted to
extravagant expenditure, which ~
experience has taught us is ever the
| bane of an overf1owing treasury.
1t was made apparent in the course of the
animated discussions which this question
aroused at the last session Of Congress, that
the policy of diminishing the revenue by re-
ducng taxation. commanded the general
approval of the members of both houses. l
regret that because of conflicting views as TO
| the best methods by which that policy should
be made operative, none of its benefits has as
vet been reaped. In fnllfilment of what
| deem my constitutional duty, but with little
hope that can render any valuable contri-
button to this vexed question, | shall pro-
ceed to state nv own views in relation
to it.
Upon the showing of our financial condi-
tion at the close of the last fiscal year. felt
justified in recommending to Congress the
abolition of internal revenue taxes except
| those upon tobacco in its various forms, and
upon distilled spirits and fermented liquors,
and except also the special tax upon the
manufacturers of and dealers in such articles
venture now to suggest that unless it shall
be ascertained that the probable expenditures
of the government for the coming year have
been under-estimated, all internal taxes
save those which relate to distilled spirits
can be prudently abrogated.
Such course if accompanied BY a sim
plifcation of the machinery of collection
which would then be easy of accomplishment,
might reasonably be expected to result in
| diminishing the cost of such collection by At
least two millions and a half of dollars, and
in the retirement from Office of from 1900 to
| 2O00 persons. The system Of excise duties
has never commended itself to the favor Of
the American people, and has never been
resorted to except for supplying deficiencies
in the treasury when by reason of special
exigencies the duties on imports have proved
inadequate for the needs of the government.
The sentiment of the country doubtless
demands that the present excise tax shall be
| abolished as soon as such course can safely
be pursued. 1t seems to me, however, for
| various reasons. so sweeping measure as
| the total abolition of internal taxes would for
the present be an unwise step. Two Of these
reasons are deserving of special mention.
First: 1t is BY no means clear that even if
the existing system of duties on imports is
continued without modification. these duties
| alone will WELD sufficient revenue for all the
needs Of the government 1t is estimated
that SlOD.Ooo,oOO Will De required Tor
pensions during the coming year, and it may
| be well doubted whether the maximum annual
demand for that object has vet been reached.
Uncertainty upon the question would alone
justify, in my judgment. the retention for
the present of that portion Of the system OF
| internal revenue which is least obje ctionable
| to the people.
Second: A total abolition of the tax would
| almost inevitably prove serious if not an
insurmountable obstacle to a thorough re-
vision of the tariff, and to any considerable
| reduction in import duties.
The present tariff system is in many re-
spects unjust; it makes unequal distributions
| both Of its burdens and its benefits. This
fact was practically recognized by a majority
Of each house of Congress in the passage OF
the act creating the tariff commission. The
report of that commission will be placed be.
| fore you at the beginning of this session, and
will. trust, afford you such information ~
| to the condition and prospects of the various
commercial, agricultural, manufacturing,
mining and other interests of the country
and contain such suggestions for statutory
| revision. as will practically aid your action
upon this important subject.
| The revenue from customs for the fiscal
year ending June 30, 1879, amounted tc
| SI37 ,0o0, 900. 1t has in the three succeeding
years reached first s1s6, 600 900, then $685..