Mower County transcript. [volume] (Lansing, Minn.) 1868-1915, 1882-12-13
GEN. RAUM'S REPORT.
He Advises a Large Reduction in
Taxation.
The Abolition Of All Internal Taxes Recon-.
mended Except That on Whisky
and Tobacco.

and Tobacco.
The report Of G. B. Raum, commission
erof internal revenue, has been submitted
to the secretary Of the treasury. It begins
with the topic Of reducing taxation as fol-
lows:
The receipts from internal revenue taxation
have increased from $113, 10000 in the fiscal
year of 1879 to 1925, 900, 900 in $780, 1886, 000-
600 in 1881, and to s146,50O,0O0 Gin round
fgnres) in the fiscal year last ended. There
will probably be some diainution in receipts
for the present fiscal year as compared with
last year, but it is not likely the collections of
internal revenue for the current year will fall
below $145,O0O,0OO, should the taxes now i'm
posed be retained. 1t is an old and sound
maxim that no more revenue should be raised
than is necessary for the economical admins
tration of the government and the gradual
reduction of the public debt, although
taxation may be wisely adjusted as not TO
operate as severe burden upon the people.
When the amount collected is beyond the actual
needs of the government there is presented
constant temptation to extravaganza in appro-
priations. Another consideration attending
the overlooking condition of the public treas
ury cannot have failed to attract your notice.
If the present rate of paying the principal of
the pubic debt be continued, all bonds subject
to call will be paid within three years, after
which time the government will be compelled,
in order to dispose of
IT'S SURPLUS REVENUE,
to buy in open market ~ per cent. bonds
which fall due in 1907. Should the government
thus become an active purchaser of these
bonds before maturity, it seems clear they
they would advance in price to 25 or 80 per
cent. premium to pay which would certainly be
| regarded as waste of the peoples money. 1t
fo O i,1ioonc rrnn,,o baf tho puh-
| lie debt should be extinguished as originally
contemplated only at rate necessary to meet
the requirements of the sinking fund, VIZ: to
the extent of about 10000 per AMMAN.
! Therefore, it becomes obvious a reduction of
| from sixty to seventy millions in the annual
| revenues of the country could be safely entered
upon and in my judgment such reduction is
urgently needed. The great bulk of the inter-
nal revenue taxation is derived from distilled
spirits, malt liquors, tobacco and cigars. These
are articles OF luxury, taxes on Which are really
paid by consumers. and no one need consume
them. am strongly of the opinion that 80
long as the principle of deriving part of the
! revenue of the government from internal taxa
ton is retained, these articles and dealers
therein. are proper subjects for taxation.
There is no demand on the part of
consumers of these products for remission of
taxes imposed upon them. There is no
PUBLIC SENTIMENT
calling for their repeal. Other objects OF in
ternal revenue taxation, with amounts realized
therefrom, for the past fiscal year are. friction
matches. $3,272,258; patent medicines: per-
fumery, etc., ST. 978, 1876; bank checks, 50, 318.-
455; bank deposits 81 ,077, 701: savings bank
deposits s8S 400; bank capital, 81, 1873, $40: say
ngs bank capital, FL, 72a Add to these items
the taxes collected by the treasurer OF tho
United States from national banks, and there is
total derived from these sources of $l8, 7l9,.
223, If to the $18, ESQ, 900 reduction thus pro.
posed, congress should add reduction in
charges for special taxes to dealers in articles
taxed for internal revenue substantially as pro-
posed in bill now pending before the senate
a still further diminution Of taxation will be at
tanned, and the supervision over dealers in tax
able articles, which experience has shown to b.
necessary in order to fully and fairly collec
taxes from all alike, be preserved. B.
reducing all these special taxes 40 PEI
cent rem mss under s tns heaa w9nle
tons-s3,OO 905. The act OF March l
1879. reduced the tax on tobacco from "a ccnt
per pound to 1G cents per pound, but did no
reduce
THE TAX ON CIGARS
and cigarettes corresponding reduction o.
, cigars would be to 81 per thousand. This,
think, should be done, and would amount to
reduction of taxes Of $6,746,o00. This woult
, make total reduction of internal revenue tax
2 Is Gncludlng taxes on national banks) of $28,
, 500, 128 Tie tariff revision il considered b,
1 commissions. I venture to suggest whether i
, is not desirable to consider the practicablity o
) taking the duty off sugar. About 1000, 900,
900 pounds of sugar are annually consumed il
3 the United States, 10 per cent. of which IS pro
e duced in this country. Upon the l,800 1000, 00
pounds imported the government derives
$ revenue of $45, 100000. Should this duty b.
8 removed there would he not only a certain
= and large reduction of revenue, but the benefi
/ 90 folk
g the people. The best refined sugar, which nov
f sells at 10 cents per pound retail, could be sol
Il at cents, if the duty were removed, and tn
: total reduction would amount to 80 cents pc
Y capita per annum of the entire population Q
r | the county.
AN OBJECTION TO THIS MEASURE
} would be the abolition of the protection no.
0 states. This difficulty might be met by givln
1 a bounty, say 215 cents per pound, upon a
Q home produced sugar. The present law give
t sugar planters in this country, indirectly 81
r 600, 900 or $5,00O.00 per annum. My propos
d ton would be to give them this amount directl
and let the whole people have the benefit Of th
j reduction in taxation of say $45, OO0, 000 whic
n would III this way be effected. The principle 9
paying bounty for the encouragement aud DE-
e velopment of American industry was adopte
+ in the case of fisheries as early as 1918, an
9 continued for more than fifty years. Million
| were palu Oul ludt llluc W aulclACa
y fishermen for fish caught and exported, and "
J, are still giving this industry bonus, allowin
n them to withdraw salt free OF duty and requi
y ing from them no tonnage dues. These n
It auctions, if made, would amount
1t 1913, 502, 1923. Receipts Of internal revenu
For 1881, 1886, 229, 913; for 1882, $146 523, ~
t. Increase, $1l.292, 361. Receipts for first fol-
J. months of the present fiscal year compare
! with the corresponding months of the past fl
cal year, show an increase in the amount r
" ceived from special taxes and decrease
e distilled spirits; an increase in cigars, cheroot
J: ciga1 cites, snuff of all descriptions and speci
u ! tax of dealers in manufactured tobacco, and
'e A DECREASE IN THE AMOUNT
&c received from all other taxes on tobacco az
IL the tobacco trade; al increase in the amour
| received from special taxes on brewers al
20 dealers in beer, increase on bank deposits an
bank circulation, and decrease in taxes of evel
L. other character on banks. The entire amour
40 collected during the fiscal year of 1882 vi
promptly covered into the treasury witho'
loss. During the past six fiscal years S74e
IL 834,O71 have been collected from intern
20 revenue taxation and paid into the treasur
y without any less by defalcation. The expens
: of collection for the last six years are abol
J. $27, Os7,3Qo. or about SO per cent. on Il
u bursed without loss to the government. Fro
3 October 4. 1877, to June 10 last. the tot
:: 1 number Of stamps received was 2.544, 944,3 "a
u value S911, 1870, 1913; issued 1881, 155, ga
e value 1868, 974, 974; leaving balan
on hand June 10, 1882, of 1853, 1ss.694 staml
= of the value of $40, 206,5 94.N. The balance
3, stamps was counted under the direction of
vi special committee, and found correct as
10 stamps and value, and agreed to cent vii
., the balance shown by the books of this offic
le Some months ago many leading sweet-mae
IN distillers made an arrangement for Ied1ctlt
of the producing capacity of their distilleri
re and for limiting manufacture in their line
81 distilled spirits to the demands of trade. Th'
:! have recently been followed by the large sou
'e mash distillers with somewhat similar a
,e rangement. The effect will be to cut dow
N production in all classes of distilled spirits
" the demands of trade. On the goth Of Jun
:, 1882, spirits remaining in warehouses reach'
10 the highest point, namely, SO. So, 645 gallon
IS Since that time there has been gradual redu
ton in the amount remaining in warehouse
and on the 1st of November, 1882, the amour
was 84,628, 331 gallons. This large stock mai
" consists of fine grades Of whisky, the t.
,, upon which will fall due from month to mont
s The last withdrawal must be made Decemb