Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1883-11-29
BLAINES BUDGET.
His Views Relative to the Distribution of
Surplus Revenue.

His Views Relative to the Distribution of
Surplus Revenue.
PHILADELPHIA, Pa, Nov. 28.-The Phila-
delphia Press tomorrow will contain g.
letter from James G. Blaine to Charles
Emory Smith, editor of the Press, stating
Blaine's objection to the distribution of
the surplus revenue of the federal govern
ment among the states, and proposing as
substitute, if the national government no
longer needs tax on spirits, that the en-
tire amount it yields be paid to the states.
Three fatal objections, III Blaine's opinion,
make the Pennsylvania proposition to dis
tribute the federal surplus unwise.
First-The utter uncertainty Of the size
Of the redundant revenue. It may be a
million or hundred millions, and unless
steady, no state tax could be remitted on
account of the receipt of this aid, while
sporadic federal contributions TO the states
would be wasted, as WIS the last distribu-
ton of the federal surplus.
Second-The division of this surplus
would impose on senators and representa-
tives divided duty. For the sake of their
states they would wish The surplus to be as
large as possible, which would present
constant temptation to withhold ap-
preparations from objects really national
in character.
Third-The assumption of continuing
redundancy of national revenue 1s opposed
to all sound views of administration, be-
cause it is sure to lead to extravaganza,
corruption and all manner OF
schemes for getting rid of money.
The time is rapidly approaching
however, when the national revenue, yield
ing under the present system of taxation
100000 beyond the amount required
for government expenses, must be reduced.
strong movement is already on foot for
the repeal of the entire law of internal
revenue which receives the support of pre-
tectionists like Judge Kelley, and free
traders like Cox, of New York. This con
junction of opposing views in support of
the abolition of the same tax, gives rare
opportunity to relieve taxation in the
States. OF all our taxes state taxation is
the most oppressive. 1t is direct, it
falls on property with crush
ing force. In few communities
is it lass than one per cent, and in most
it is over two per cent. Why, therefore
should not the states be permitted to have
the tax on spirits for their own benefit if
the national government does not need it !?
Can it be wise to continue direct tax on
property, and at the same time command
hurtfni luxury like spirits togo free q
luxury whose taxation Expresses no ono?
The customs revenues, the national gov
eminent monopolizes; the excise is open
in theory TO both state and national uses
IN taxation, but in practice
The national authority alone can levy
an excise tax on whisky. No state
can guard its borders against whisky from
other states, or make an economical col
lection of It's own revenue. The federal
machinery for the collection of this rev
enue is in full operation and bill of ten
lines could direct the secretary
of the treasury to pay the whole
of If, less the small expense of collection,
to the states and territories in proportion
TO their population, and continue it per
manently as part of their regular annual
revenue from specific tax wholly to the
states and would not depend upon chance
surplus or accidental remainder in the ma
tional treasury. 1t would make the tax on
spirituous and malt liquors a permanent
resource to all the states, enabling them
thereby to definitely readjust and reduce
wisely use its share according to its own
necessities. The total return of tax on
spirituous and malt liquors last year was
over $s6,OOO,00O, an amount which
would tend to increase rather
than diminish as each state saw suppress
sion of Illicit distilleries was to its own
advantage. With this revenue state tax
alton conId be RENTED, state debts paid,
or If paid were divided among the cities
and Counties their expenses would be pro-
portionstely diminished On table an
nexed to the letter Blaine shows that the
share the large states in the basis popula-
ton would be $685., 900 for New York;
s7493, GOO for Pennsylvania; 1925, 600
for Illinois and $5,590.0oO for Ohio, the
smaller ststes receiving in proportion.
Determination Against Western Shippers.
ALBANY. \. Y, Nov pa decision
was announced today by the board of
railroad commissioners in the mater of
the complaint of the chamber of commerce
and others sgaIns. the trunk Iines, alleging
discrimination against dry goods shipped
west. The decision written by Commits
sioner O'Douneil, sUstains the con- plaint
against the trunk lines and condemns the
whole system of pooling and recommends
Redistribution from the first class to
the third class of bags. brown sheetiDgs,
denims, tickIDgs, oil cloth under ten feet
in original bales. Also to change to class
second, domestic prints, bIeached goods,
canton fannels, hemp, carpeting, crashes,
canvas and warp.
The stockholders of the Scranton Steel
company unanimously agreed to increase
the capital $500, 1000 to 81 100000 with the
purpose to build a new blast furnsnce.