Seattle daily post-intelligencer. [volume] (Seattle, W.T. [Wash.]) 1881-1888, 1883-12-09
What to do with the surplus revenu'

What to do with the surplus revenue
continues IA puzzle the government and
to afford theme for discussion by the
press. The revenue from the tax on
whisky which annually accrues to the
government is about $50, 10000, OBJ
tanned by tax on both manufacture and
sale. The government: doesn't need the
Honey. Its revenues from customs are
ample to defray its running expenses
and pay interest on the public debt.
TIE natural solution Of this problem
would be to reduce taxes. But Lere the
question comes IN. On what articles
shall the reduction be made: The p1b-
lie will not consent that the tax be re-
moved from whisky, while /. IS levied
upon imported manufactured articles
necessary for use in this country. 1t
objects TO exempting Injuries while pay
ing taxes on nece5sariss. 1t Insists that
reduction, if made at all, shall begin
with the duties on imports OF necessi-
ties. To such reduction the rDan1fac
turers Of the country strenuously object.
They claim that further reduction of
iIn port duties will shut up their mills
and throw their uorkmen :ut OF en-
poyment. Meantime the national banks
complain that the debt Is being paid SO
fast that bonds upon which to base the
issue of their notes are getting scarce
and command 80 high premium that
there is no profit in the business. 1t Is
Furthermore apparent that, unless the
rapid redemption of boRds Ii stopped,
there must shortly result a marked re-
duction in the circulation, with result
ing financial stringency.
What is to be done! Assuming that
any material reduction cannot be justly
made, how Is the government to dispose
of the yearly surplus, except by taking
up its bonds and extinguishing its debt!
Tie President suggests one way and rec
ommends it's adoption, tO-wit, TO build
navy. His recommendation is in or
der and eminently proper. This coun-
try needs first class navy-one strong
enough to cope with that of any other
government successfully. 1t is a good
time to build it now, when we are flush.
There may como a time when it will be
more difficult to create respectable
fleet than just now, when the Golfers Of
the government, are OVERLOOKING. Half
the annual revenue from whisky would
build several good ironclads and arm
them suitably. Let us have navy.
But there are other recommendations
i'll connection with this matter of dis
posing Of the surplus revenue. when
the war closed the Southern States were
left almost beggared by its expenses
and disasters. Their property had been
destroyed, credit broken dowH and in
dustries uprOoted. In addition to these
evils they had devolved upon them the
care and education Of manumitted
race. 1t cannot truthfully bs said that.
generally, the Southern States have not
been honest i'll the effort to institute and
maintain q system of popular education.
They have accomplished wonders in
this direction, far more than was to 10
expected. But the load has been, and
is too Grea: for them to carry. Before
the war the common school system as it
existed in the North was no. known in
the South. The percentage of iiliteracy
was very large. The accession to this
number, of four millions of emanci-
pa.ed slaves, largely increased the ratio
of uueducated persons. Under this load
the South has struggled since the war;
Common school systems have been es-
tablished and supported by Onerous
taxntion, and the percentage of litter
acy is decreasing slowly. 1t is pro-
posed that the Government shall devote
L portion of its surplus revenue to the
education OF the colored race, thus lift
ing from the shoulders of the Southern
taxpayers heavy load. Tho moveme nt
has earnest supporters. 1t has merit.
The colored race is invested with citi-
zeLship. Intelligence il necessary to
The proper exercise of the elective fran
ohise. Ire. the whiskey drinkers pay
for educating the freedmen.
Another proposition which hes re-
oeived the endorsement of alb. minds is
to distribute the proceeds of t.c In
ternal Revenue tx among tn, severa
States. BIZ some. NOTABLY, Mr.. Blaine
II il suggues:od that this distribution
he made apon The basis OF population
by others, ana III tins plan If consti
tutional ana feasible there il s.ricter
justice. taat IT te II AIDE upon tho ratio
of consumption. Hero comes up tho
question. Can the general Goycrnmer,
be the tax gatherer for tho States. II
the money realized be considered n.
surplus. there Ii "A precedent for its dis
tElhuiion, either as n loan or gift among
the States. Years ago tue Government
when its treasury was ple;horic loanet
the surplus IL the several States in pro
portion To their population. IL this dis
tribution of surplus revenue ON til.
basis OF population is not forbidden b,
the Constitution, why should not di
vision on the basis of consumption b,
equally just9
There are two methods in which til,
whisky tax can be equitably Co!
lecscd and distributed. In eithe,
case the tax must be placed, not upo,
manufacture, hut upon sale. OF Eng
land and other European government
1t has been ap,ly said that every time {
man crooks his elbow the Government
derives a revenue. The tax then should
DO license on sale. How should il b,