New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-11-29
THE SURPLUS REVENUE.
A LETTER FROM Ex-sECRETARY BLAINE.

AhlLADELfHlAy NOV. ZOs-lH ISsponsc W "
request for his views upon the subject OF the
surplus revenue in the National Treasury, ex-
| Secretary Blaine has sent to Mr.. Charles +.
Smith, Editor of The Philadelphia Press, tho
following letter, which that paper will publish
tomorrow. In word its proposition is that
the internal revenue tax on spirits should be
continued as a permanent part of our revenue
system, but be paid over to the States in pro-
portion to their population:
| AUGUSTA, Me-, Nov. %, 1858.
CHARLES EMORY SMITH, Esq, Editor of Tie Press,
| Philadelphia
MY DEAR SIR: / have your note inquiring
if would be illng to give in the
thentic form of letter my own sigma
ture certain views which i expressed in con-
versatiOn several weeks since, touching an i'm
portant financial question. L understand you TO
refer to observations made to one of your as
sstant editors in regard to the proposition of the
Republican State Convention of Pennsylvania for
the distribution Of the surplus revenue of the Ma
tOnal Treasury among the States" understand
you to refer still more particularly to suggestion
| of my a substitute for the Pennsylvania
proposition, to which thought 1 saw fatal objec-
tons | have no reason for Withholding my views,
and | admit the wisdom of your suggestion that L
would better state them myself than to have them
possibly nisstated by Others.
The proposition OF the Pennsylvania Republican
Convention is to distribute among the States any
surplus in the National Treasury that may arise
from u redundant revenue" The first objection
which to this proposition is the utter uncer-
tainty of the amount of redundant revenue" 1t
may be million it may be one hundred mill,
,ons The amount, depending as it does On so many
contingencies cannot be determined in advance
with even approximate eXactness, and the States
could not therefore, depend upon steady re-
source. Unless steady it would not bring relief be-
CAUSE it would not enable the States to dispense
with any part Of their systems of taxation. AN
occasional gift from the National Treasury would
not be valuable. That was proved by the dstrlbu-
ton of the revenue under the Act Of 1886, in tho
Presidency of General Jackson. 1t did no good. 1t
was rittered away in all the States Here in Maine
they made an absolute per capita distribution of it
among the entire pOpulationa trihlng sum to each.
That of course, threw contempt upon the whole
measure
There is a second objection to the Pennsylvania
proposition which in my judgment is still more Sc
rOus. If you simply resolve to distribute the re-
dundant National revenue" among the States, you
impose upon Senators and Representatives divided
interest which would be embarrassing and hurttul.
For the benefit of their subsequently, of those
States that might be in pressing need of money
Senators and Representatives would desire the re-
lundant revenue" to be as large possible. This
would present a constant temptation to withhold
appropriations from objects of a really National
character 1t would be unfair to Senators and
Representatives to lay upon them and before them
obligations aud motives which would constantly
tend turn them from the straight path of duty to
the National Government. You cannot have tho
National Government and the State Government
oint owners in the same Treasury without mis-
,hievOus conflict. Such a partnership is at war
l..l,, ~. nfh 10th afa al Nat
A third objection to the Pennsylvania proposition
s that it proceeds upon the assumption OF a con-
tmuing redundancy of National revenue This IS
opposed to all sound views of administration. Tho
government wants Just enough revenue. redun-
lancy always leads to extravaganza, to many forms
II corruption and to all manner of schemes for get
| ing rid of the money. Congress assembling With
ens of millions of surplus at its disposal is very sure
| 10 hold sessions which would prove prOftless to the
! ieoplc and pcrlOus to its own members. Since tho
var closed we have had no embarrassing redun-
hncy in the Treasury, because the payment of tho
National debt has afforded ut once the readest and
| che wisest mode of appropriatng every dollar not
leedcd for the current expenses of the Government
The time is rapidly approaching however, when
~ of the terms IN which the National DEBT ls
| iunded, the payment of the remainder must OK
lecessty bc postponed for years-thc larger part ot
| it, indeed to the next century. This brings with it
| the necessity of reducing the National revenue.
The present system of taxation yielding more than
hundred millions beyond the amount required Tor
lEo ordinary expenses of Government. Its reduction
| will soon become an imperative duty Indeed, n
rong movement is already foot for the repeal OF
he entire system of internal revenue, on the as
sumption (which is justified by facts that receipts
from customs will afford abundant revenue TOR tho
reeds of the Government The Protectionlsts desire
hs-but not they alone. Judge Kelley IS not moro
earnestly in favor Of it than is Mr.. Cox of New
York who is n most intelligent representative OF
he Free Trade interest. Many of the leading free
raiders in Congress are opposed to the continuation
If the tax on spirits. 1t is therefore quite evident
L is at least highlyprobable that Il coalition of mea
aoldng antagonistc views on the question oil mo
iectou will ut the first opportunity elect the ADOLF
ton of the system of internal revenue.
This coniuncture of circumstances gives, in my
Judgment, u opportunity to relieve taxation m
the States. Ii is under the State Governments that
| taxation is felt most severely. The National Gov
rrnment has the benefit of easy, because indirect,
orms of taxation. 1t is the direct tax that is felt
TO be oppressive At the beginning of the war the
National Government levied u direct tax of
S2O 600 900 upon the States-abOut GG cents per
cdpitd on the whole population. Ii frightened tho
people and the effect depressing that all
kinds of composition and adjustment We're invented
to avoid payment. But concurrently with tho
fright occasioned by the direct tax, hundreds OF
millions were raised in single year by customs and
by excise without a word of protest OF sense vt
hardship.
Our State and municipal taxation is direct. 1t
comes upon the property with crushi force. There
are few communities in the United states that pay
so little as per cent per annum on the actual
value of their real property There are many com.
| munities that pay more than two per cent on the
actual value The houses tho farms, the factories,
the stores, the shops, all feel it heavy BURDEN
| q burden unrelieved by any form of indirect taxa
rl,,-t uhn,lh fhn ln nnr