The times. (Owosso, Mich.) 1882-1897, 1882-12-08

some mode of freeing the Treasury OF
an excess of assets. In the event that
Congress fails to reach an early agree
ment for the reduction of taxation, /
heartily approve the Secretary's recon-
mendation of immediate and extensive
reductions in the annual revenues of the
Government. 1t will be remembered
that urged upon the attention of Con-
gress at its last session the Importance
of relieving the industry and enterprise
of the country from the pressure from
unnecessary taxation. 1t is one of the
tritest maxims of political economy that
ly and prudently imposed, and though
there have always been among our peO-
pie wide differences of sentiment as to
the best methods of raising the national
revenues, and, indeed, as to the prin-
ciples upon which taxation should be
based There h rs be n substan ,ial accord
in the doctrine that only such taxes
oughtt0 be levied as are necessary for a
wise and economical administration of
the Government. Of late the public re-
venues have far exceeded that limit,
and unless checked by appropriate legis-
lation, such excess will continue to in
crease from year to year. For the fiscal
year ended June so, 1881, the surplus
revenue amounted to l00,OO0,OOO. For
the fiscal year ended on the 3Oth of June
last, the surplus was more than $l45,
100000. The report of the Secretary
shows what disposition has been made
of these moneys. They have not only
ing fund, but have afforded large bal
ance applicable to other reductions of
the public debt. But L renew the ex-
preston of my conviction that such
rapid extinguishment of the national
Indebtedness as is now taking place, is
by no means cause for congratulation.
1t is cause rather for serious appre-
hensiOn. If it continues, it must speed
lily be followed by one of the evil results
so clearly set forth in the report of the
Secretary. EithRf the surplus must lie
idle in the Treasury. or the Govern
ment 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 swollen revenues will
be devoted to eXtravagant expenditure,
which, as experience has taught, is over
the bane of an overlooking treasury. 1t
was made apparent in the course Of the
animated discussions which the qnes-
tiOn aroused at the last session of Con-
gress that the policy of diminishing
the revenue by reducing taxation, COM
manded the general approval of the
members of both Houses. Iregret that,
because of conflicting views as to the
best methods by which that policy
should be made operative, none of its
benefits have as yet been reaped. In
tional duty, but with little hope that
/ can make valuable contribution to
this veXed question, L shall proceed to
intimate briefly my own views in rela-
ton to it:
Upon the showing of our financial
contribution at the close of the last fis-
cal year felt justified in recommending
to Congress the abolition of internal
revenue taxes except those upon tobac-
co in its various forms and upon dis
titled spirits and fermrnted liquors, and
except, also. the special tax upon the
manufactures and dealers in such artic-
les. | venture nov . suggest that I'M
less ii ei'''' 40 MO-
bable 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 simplification of
the machinery Of collection. which
would then be easy of accomplish
ment, might reasonably be expected to
result in diminishing the cost of such
collection by at least two millions and
half. and in the retirement from office
of from fifteen hundred to two thousand
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 doubt
less commands 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 aboli-
ton of internal taxes would, for the
present, be an unwise step. Two of
these reasons are deserving of special
mention.
!. 1t Is by no means clear, that even if the
existing system of duties on imports is con-
tinued without modification, those duties
alone will yield sufficient revenue for all
the needs of the Government. 1t Is esti- |
mated that 500, 900, 900 will be required for
pensions during the coming year, and it may
well be doubted whether the maximum an |
nual demand for that object has yet been
reached Uncertainty upon this question
would alone Justify, In my Judgment, the
retention, for the present. Of that portion
OF the system of internal revenue which Is
least Objectionable to the people.
2. A total abolition of excise taxes would
almost inevitabley prove serious not
an ui.surmountable objection to thorough
revision of the tariff, and to any consldera-
BILE reduction in import duties.
THE PRESENT TARIFF SYSTEM
is in many respects, unjust. 1t makes UNI
equal distributions both of its burdens and
its benefits. This fact was practically rec
ognized by majority of each house of Con
gress, in the passage of the act creating the
Tariff Commission. The report of that
commission will be placed before you at
the beginning of this session, and will, I
trust, afford you such information as to the
condition and prospect of the various COM
mercial, agricultural, manufacturing, min
ing, and other interests of the country, and
contain such suggestions for statutory re-
vision, as will practically aid your action
upon this important subject
The revenue from customs for the fiscal
year ending June 80, 1879, amounted to
IN nm "a h.. t. n