Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1882-11-17
PIC IRON KELLY .
Gives His Views On the internal
Revenue Systsm.
He VIII Use His Best Efforts for Its AboI-
ishment Reform in TaxatiOn--
Alternatives for the
Government.
GENERAL WASHINGTON NEWS NOTES.

WASHINGTON, November l6.-Judge VIM
D Kelley arrived here last evening, and
to-day had q conference with the Se"-.,.
of the Treasury and the Pres:.I With 70
gard 10 internal reT,<snue taxation. In the
opinion u Judge Kelley, there is every
prospect of vigorous fight over the tariff
issue in the coming Congress. This, he
| thinks, is inevitable. An attempt will be
made the coming session to get an act
through abolishing the internal revenue
system. To this end Judge Kelley will de-
vote all his energies. He is of the opinion
that the prospect for securing this is much
better now than ever before. A number OF
those most opposed to the abolition
of internal revenue have been retired
to private life in the recent election.
The subject has assumed more Importance
because OF the results in the recent cam
paign.
The question Of an early meeting of the
Committee OF Ways and Means, depends
somewhat upon when the report Of
The Tariff Commissiou
is handed in. OF the exact status of this
report Judge Kelley is not yet informed,
but be thinks it will be ready before Con.
gress meets. Nothing can be done by the
meeting OF the Committee of Ways and
Means until that report is in. He is in
favor Of a sweeping reform in taxation.
This reform, he thinks, will be found in
doing away with the entire internal reye-
nue. system, which requires the disburse-
ment of 5000, 900 annually, and the en-
plOyment of 1000 partisan agents, He re-
CARDS the surplus revenues as the greatest
danger which any party has to combat, and
believes that the disaster to the Republi-
can party is mainly owing to the fact that
il refused to remove this burden from the
shoulders of the people. The annual
Increase OF Our Revenues
from all sources during the last fiscal year
amounted 70 nearly SIS, 100000 Our inter
est account was reduced by more than $l7,-
COO 600. The annual increase of receipts
from internal taxes for the last three years
has exceeded Sll COO, 900 per annum. These
receipts in 1882 were about $l47 900, ,OOO
and this year promise to be nearly or quite
$3.50, ,OOO, 600. 1t is the American people
who pay these millions, and to the whole
sum must be added the cost OF living in
this country in a period when the strife be-
tween the United States and other nations,
is a question of their 50 cheapening the
production as to invade our home market
by cheaper commodities. In Judge Kelly's
opinion the maintenance Of these taxes is
AwRnton ExaetiOu.
They are protective of monopolies and
their burden falls with disproportion and
with weight upon the poor and laboring
classes. If maintained they corrupt not
only the legislative portion of the depart
ment of the Government, but the people in
every State of the Union.
Mr.. Kelley cites the case of the tax on
matches, which puts into the pocket of
monopoly upwards of $1,000, 900 annually.
This match tax, two of whose champions
will be remembered, Messls. Page, OF
California, and HazletOn, of Wisconsin,
have been left at home. The tax on cigars
has fostered the same class OF monopolies,
driven out the poor dealers, men and wo-
men who manufactured and sold cigars at
retail in their small homes. What might
be said of cigars can be applied 70 the other
features of the law Of taxing tobacco. He
does not think that either party is wholly
responsible for the present state OF affairs,
members of both
Opposing the Repeal
of the internal revenue system and MEM
bers of both sides faYoring such an abOli-
tiOn.
The charge that the proposition to abol-
ish the taxes on back checks is for the re-
lief of the rich, he regards wholly uu-
founded. The tax is wholly paid by the
borrowers, and the difference charged up
on the loans. Everybody who puts money
in bank paws the hank check tax and the
tax on deposit The man who checks for
$50 OF for IS pays Just as much as the man
who checks out $500, 900 or $40, 100000 No
matter what they say, the facts are that the
Poor and Laboring Glasses
pay the taxes of the Government. All
taxes come eventually from the producer.
In consequence of this the unnecessary
burden of SIS, 900, 900 to 500, 100000 year
is actually laid Hpon the labor OF the coun-
try. The Judge is of the opinion the pres
ent Congress has been guilty of the most
reckless extravaganza merely because OF
this large surplus. That such extrava-
gance would obtain had been charged by
the newspapers, and the results OF the last
session show that the newspaper s'predic-
tiOns were correct. Over '$6,OOOOOO have
already been appropriated for public build
inGs alone, and should the same looseness
prevail in the coming session this
Amount VIII be Doubled.
Judge Kelley thinks that if this internal
tax system should continue for snOther
four years the Government would be
driven to the alternative of purchasing its
bonds in open markets at greatly ad'
yanced premium, or locking up in the
Treasury from SO, ,OOO, 900 to $50, 100000 per
month of this surplus. The latter alterna-
tive would produce panic. The former
would put the money Of the people into
the pockets of the bondholders. We are
simply driven TO the issue that we have
avoided so long and are compelled to take
one horn of the dilemma or the other.
Shoald the internal revenue system be
Judge Kelley thinks that the
question of the tariff might be greatly
simplified and easily settled 10 the general
of everybody.