The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1883-01-25
WASHINGTON, january q


To The Editor of Me Dispatch:
send you the incIoscd. Just cut from the
Tobacco leaf, which may furnish by its
republication some arguments for what
seems now to be cherished object with
the old Dispatch.
After tobacco. an agricultural product,
has paid 5000, 100000 from LIST September,
1862, TO the present into the treasury OF
tie United States for war and pensions TO
northern soldiers. why should not an
income tax on incomes OF over $4,000 bear
the farther expenditure OF S1,0OO,000,OoO
for what is known rs the "arrears pen
sion act" in the future?
Would it not be popular for the now
incoming and triumphant Democracy to
make their war-cry, Gan income TAX ior
the future, with pensions, is to go hand In
hand" Very truly. your irieho,
W. L. BURwELL.
There are unfortunately not many per-
sons in Virginia who would have any per-
sonal reason for Directing TO tax on in
comes exceeding five thousand dollars.
The following is the article from. the
Tobacco. Leaf to which Colonel BURwELL
calls our attention:
We foresee one important change In the
future which may cause important conse-
quences for this country. We refer to the
movement in America in the direction OF
free trade. The enormous Overpus OF
revenue points to q large remission OF du-
ties at no distant date. The increasing
power OF the Democratic party-always
more favorable 10 free trade-tcnds in the
same direction; and we may have in year
or two to face the question whether we
shall gain more by the opening OF
the American markets or suffer more by
keener American competition in our foreign
markets. Some good Judges think that we
shall lose more than we shall gain by free
American competition, but we incline to
the opposite view. We think that the
cheaper labor and capital Of this country
will always give us IN advantage over
America in neutral markets, and We would
expect a steady increase OF exports TO the
United States under asystem OF low duties;
hut this increase will be slow and gradual.
We do not think that the immediate effect
OF a low tariff will lie important, for the
simple reason that America now manuiac-
lures quite sufficient to supply her own
wants; her manufacturers will not cease
working because duties arc lowered
and foreign goods introduced more
cheaply-they will simply lower their
prices and sell at smaller profits.
Machinery when once started Is al
ways worked, no matter how small the
profit may be. We know this well by our
own experience. America has vastly in
creased her manufacturing capacity during
the last few years of prosperity. II Is
question whether she has not oyeT-suppied
her own requirements, and the only effect
Of lowering the tariff will be to reduce
prices of goods and the profits OF manuiac-
turcrs. We will still be Kept ont OF the
American market, not so much by tarifi'-
as by their own competition. The real
advantage TO this country will come in
after years. Manufacturing capital viii
cease to pay so well in America, and will
not be extended so fast, while population
grows rapidly, and soon there will be a
margin OF demand which will he supplied
from Europe. In ten years the United
States will add to its population over fif-
teen millions of people-all large con-
sumers-and some OF their demand will
likely come to this country if we have free
trade. or even moderate tariff on imports.
Still We must not ignore the fact that
keener competition will be experienced
with American manufactures elsewhere,
and there may be timps-when trade is dull
and stocks are unstable at home-wben
American goods will compete sharply with
ours in the markets of the world.
Holding such views, we are not sanguine
OF a great and immediate advantage to this
country from the free-trade movement
now rising up in America, but upon the
whole we think it will tend in our favor,
especially when viewed in its more distant
roStIlto