Butler citizen. [volume] (Butler, Pa.) 1877-1922, 1882-12-13

Millions
The report of the Secretary shows
what disposition has been made of these
They have not only answer
ed the requirements of the sinking fund,
but have afforded large balance, ap-
plicable to other reductions of the pub
lie debt.
NOT A MATTER FOR CONGRATULATIONS
But | renew the expression OF my
that such rapid extinguish-
nent of the national indebtedness as Is
now taking place is by no means
cause for congratulation. 1t is a cause,
rather, for serious apprehension. If it
continues it must speedily be followed
by one ofth evil results so clearly set
forth in the report of the Secretary.
Either the surplus must be 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 COM
mand an enormous premium, or the
swollen revenues will be devoted to
extravagaut expenditure which, as e%-
perience mas taught, is ever the bane
of an overfowing Treasury.
1t was made apparent in the course
of the animated discussion which this
question aronsed at the last session oil
Congress that the policy of diminish
ing the revenue by reducing 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 have as yet been reaped.
yExED QUESTION DISCUSSED.
In fulilIment of what l deem my
Constitutional duty, ibut with,littleihope
that I can make valuable contribution
to this vexed question, 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 il
recommending to Congress the aboll-
tion of internal revenue taxes, except
those upon tobacco in its various forms
and upon distilled spirits and ferment,
ed liquors. and assess a special tax up
on the manufacturers of and dealers In
such articles. / venture now to sug,
gest 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, accompanied by a sim
plication of the machinery of collection,
which would then be easy of accom-
plishment, might easily be expected to
result in diminishing the cost of such
collection by at least two and onc-half
millions of dollars, and the retirement
from Office of from 800 to 1000
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 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 q measure as the total
abolition of internal taxes would fol
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 continued without modi
fication, those duties alone will yielc
sufficient revenue for all the needs o
the Government. 1t is estimated thai
one hundred millions of dollars will be
required for pensions during the com
ing year, and it may well be doubted
whether the maximum annual demand
for that object has yet been reached
The uncertainty upon this question
would alone justify, in my judgment
the retention for the present of that
portion of the system of Internal Reve
nue. which is least Objectionable TO the
people.
Second-A total abolition of excise
taxes would almost inevitably prove O
serious, if not an insurmountable, OBJ
stacle to thorough revision of the
tariff and to any considerable reduction
in import duties.
THE TARIFF SYSTEM.
The present tariff system is in many
respects unjust; it makes unequal dis
tributions both of its burdens and its
benefits. This fact was practically rec
ognized 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 before you at the beginning O
this session, and will, | trust, afford
you such information as to the condi
ton and prospects of the various com
mercial, agricultural, manufacturing
mining and other interests Of the coun.
try, and contain such suggestions fol
statutory revision as will practically
aid your action upon this important
subject.
CUSTOMS REVENUES.
The revenues from customs for the
fiscal year ending June 30, 1879
amounted to $l37,000,0O0. 1t has il
the three succeeding years reached
first, $lS6, 900, 900. then $4,000, 600
and finally, as has been already stated
1920, 100000. The income from thi;
source for the fiscal year which vii
end on June 80, 1883, will doubtles;
be considerably in excess OF the sun
last mentioned If the tax ondomestiC
spirits is to be retained, it is plain
therefore, that large reductions from
the customs revenue are entirely feast
bic. While recommending this reduc
ton, am far from advising the abandon
ment of the policy of so discriminating