The comet. (Johnson City, Tenn.) 1884-1916, 1886-12-16
TAXATION.
Secretary Of the Treasury NAM
ming Gives EIis Views.

OF the treasury submits his views con-
cerning the proper governmental pol
icy in the matter Of raising revenue.
He quotes from the last national dem
ocratic platform as the basis of his
views, and then proceeds to elucidate
his own theory. We take the follow
ing extracts from his report;
The federal power Of taxation is al
most uncircumscribed. 1t must be
"for the general welfare" not for a
partial or class benefit. Exports can
not be taxed. Direct taxes must be
apportioned among the several states,
according to their population. Indi-
rect taxes must be uniform through
out the United States. These include
"all duties, imports and excises.
which are, though advanced by the
home producer or the importing mer-
chants, alike actually paid by the final
consumer.
Our experience of the difficulty and
inequalities of the direct tax when APP
piled to land, Of which a square foot
in one place is costlier than
100 miles square in another place, and
in proportion to population, which
varies in density now and changes
continually; or when applied to indi-
vidual incomes (the most direct con-
ceivable, for when paid it cannot be
shifted-it has no repercussion, which
is the only common feature Of the tax
es held to be direct before war has
disturbed the vision of courts and legis-
latures) under the prescribed rule of
apportionment to the states, according
to population, confines their utility
to state purposes, and excludes them
from the just purview of federal taxa
tion.
1t is indirect taxes only which the
federal government now levies and to
which, being thus practically restrict
ed by those provisions of the constitu-
ton, it must look for its revenues and
its remissions when revenue outruns
expense. 1t is out Of indirect taxes
that arise contentious about protec-
tion and free trade, as they arose be-
fore the war when our debt was little
and our expense so small that many
thought congress might have abolish
ed custom houses, and no harm.
Gree trade" accurately describes
the internal commerce of our states.
1t applies to the commerce, one with
another, of no other great and sover-
eign states. 1t does not apply to our
trade with foreign nations. No man
now living will ever see "free trade"
adopted by these UnitedStates in their
commerce with foreign nations for
taxes on imports, from the foundation
OF this government, have ever been
our chief source of federal revenue,
and such they will continue to be.
They are taxed upon consumption,
like our internal revenue taxes and
the true ground of choice among arti-
cles suitable for taxation is not the
circumstance that they are produced
at home or imported from abroad, for
neither the producer nor the importer
finally pays the tax. The consumer
pays it. The place of origin is no
criterion. The place cf collection is
no criterion. The place Of consump.
tion is where duties as well as excise
are paid at last seaport taxes and in
land taxes are alike in cost Of collec.
ton, g $40 and 8 Clio per cent? and
alike in this, that although the i'm
porter or distiller advances the tax, he
reimburses himself in the price to tat
consumer, who alone is taxed. The
true ground Of choice is that among
all articles thus consumed within oul
own borders some are better suited fol
. an equitable taxation than others
They are universally consumed, like
t sugar, or easily identified, like coffee
or their resumption may be safel!
impeded, like distilled spirits or fer
: mented liquors or tobacco, or they ar
luxuries, like wines, silks and dia
: monds. But of these articles, suitable
for taxation, foreign production afford
: as many as home production or more
!, Taxes on imports are levied by al
nations. But no foreign nation take
4 raw materials. Such taxes injur
a home industries, in which those ma
terials are worked up and increase
in value by home labor. Such take
on raw materials, instead OF excludip
y foreign competition from the HON
q market, put our own employers of Ii
d Dor at a great disadvantage in tn
e home market, and greater disadvar
e tage in every foreign market con
pared with the foreigner employin
d labor upon untaxed raw materials.
"Protection" is also misnome
a 1t implies superiority elsewher'
n That superiority over any great indus
try OF ours does not exist anywher
upon the globe. 1t implies infant
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