The National tribune., 1882-12-07

15l 152 O9i
1873. 21ISll ,Si
26i 66 66G
lbIhS39l2
GD9 ~, Is
1852 10 tS5
During the year there have been organized
III national banks, and of those institutions
there are now in operation 2,269. larger num-
Der than ever before. The value of their notes
in active circulation On July l, 1882, was
1924, ,656,4 ass.
The President adopts the view Of the Secre-
tary of the Treasury that on this showing there
is likelihood of a serious contraction of the
currency, unless Congress, by reducing taxa
ton. takes steps to avert it. He recommends
discontinuing the coinage of silver dollars
only $50, 100000 out of the $128,000O00 coined
being in circuation-and retirement of the
silver certificates because Of the effect which is
likely to ensue from the active circulation of
gold certificates for which Congress recently
made provision.
THE INTERNAL REVENUE TAXES.
The President goes at length into the discus
sion of the question of repeating the internal
revenue taxes and is very emphatic in his
recommendations. He says:
renew the expression of my conviction that
such rapid extingushment of the national in
debtedness as is now taking place is by no
means a cause for COngratulation; 1t is 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 lie idle in the Treas
ury, 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
7 swollen revenues will be devoted to cXtravagant
expenditure, which, as experience has taught,
is ever the bane of an overlooking 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 reducing
taxation commanded the general approval Of
the members of both Houses.
/ regret 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 fulfllment of what deem my constitu-
tional duty, but with little hope that ] can
make valuable contribution to this veXed ques-
tion, l shall proceed to intimate briefly my own
views in relation to it.
Upon the showing of our financial condition
at the close of the last fiscal year. felt justified
in recommending to Congress the abolition of
dll luleIuHl-IGNSuuc ldAtS, tACtpb bllOSS uIiOi
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 underestimated, all internal taxes, save
those which relate TO distilled spirits can be
prudently abrogated
Such course, if accompanied by a simplifi-
cation OF the machinery Of collection, which
would then be easy of accomplishment, might
reasonably be expected to result in diminish
ing the cost of such collection by at least two
million and a half of dollars, and in the retire
ment from office of from 1,500 to 1000 persons.
The system of excise duties has never COM
mended 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 a course can be safely pursued.
1t seems to me, however, that, for various
reasons, so sweeping a measure as the total abo-
lition of internal taxes would, for the present,
be an unwiSe step.
Two of these reasons are deserving of special
mention:
First, it 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 estimated that $780,
100000 will be required for pensions during the
coming year, and it may well be doubted
whether the maximum annual 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.
Second, total abolition of excise taxes would
almost inevitably prove a serious, if not an in
surmountable obstacle to a thorough revision
Of the tariff and to any considerable reduction
in import duties.
The present tariff system is in many respects
unjust. 1t makes unequal distributions both Of
its burdens and its benefits. This fact was
practically recognized by n majority of each
House of Congress 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, | trust
afford you such information as to the condition
and prospects of the various commercial, agri-
cultural, manufacturing, mining, and other in
terests Of the country, and contain such suggeS-
tionS for statutory revision, as will practically
aid your action upon this important subject.
The revenue from customs for the fiscal year
ended June 80, 1879, amounted to $l37 100000
1t has in the three succeeding years reached
first, ST. 100000; then $I95,0OO000; and final
+ ly, as has been already stated, 1920, 100000
The income from this source for the fiscal
year which will end on June 30, 1883, will
doubtless be considerably in excess of the sum
last mentioned.
If the tax domestic spirits is to be re-
tained it is plain, therefore, that large reduc-
| tiOns from the customs revenue are entirely
feasible While recommending this reduction,
| am far from advising the abandonment of the
policy of 50 discriminating in the adjustment
of details rs to afford aid and protection to do
mcstic labor. But the present system should
be 50 revised as TO equalZe the public burden
among all classes and occupations and bring il
into closer harmony with the present needs of
industry.
Without entering into minute detail, which,
under present circumstances is quite unnCcCS-
sary, | recommend an enlargement of the free
LIST so as to include within it the numerous arti-
clcs which Weld inconsiderabe revenue, a sim
nlifcation of the complex and inconsistent
schedule of duties upon certain manufactures,
particularIv those of cotton, iron, and steel and
a substantial reduction OF the duties upon those
articles, and upon sugar, molasses, silk, wool,
and WOODEN goods.
If a general revision Of the tariff shall be
found to be impractic.blo at this session. cX-
press the hope that at least some Of the more
conspicuous inequalities Of the present law may
be corrected before your final adjournment.
One of them is specially referred to by the Sec
rctaIy. Ia view Of Il recent decision OF the
supreme Court, the necessity Of amending thc
law bT which the Dutch standard of cG.or IS
adopted as The test Of the saccharnc strength