St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1888-05-20
TAXATION.
Impossible to Impose Taxes With
out Hurting Some One.

OUT SOHIc oHe.
1t is impossible to impose taxes under
any system that can be devised without
hurting somebody and helping some
body, and for my part, an | speak the
sentiments of my political friends, [
would rather help them than to hurt
them. But the gentleman from Maine
in his long discourse made no reference
whatever to the actual situation which
now cOnfrontS uS-a situation which
makes it the imperative duty of the rep
reSentativeS of the people to reduce the
revenues before this congress shall adj
jOurn. On the first day of the present
month there was in the treasury $780,
143,000 in excess of all the current liza
bilitieS of the government, showing that
there has been since Dec. l an average
monthly accumulation of more than SILL
100000. Every dollar of this enormous
sum has been taken by law from the
commercial pursuits of the people at
time when it was SOrely needed in the
prosecution of their business, and under
circumstances which afford no justitica-
ton whatever for the enactment. The
question this congress must decide is
whether this policy shall be longer con-
tinued here in this country where the
people are supposed to govern in their
own right and their own interests. l
can imagine no financial condition more
dangerous to the integrity of legislation
and the prosperity of the people than
that which results from an accumulation
OF
A LARGE SURPLUS
in the public treasury. Even if it was
possible for such accumulation as we
now have to come into our public treas
ury without the imposition of any tax it
would still be a great misfortune, be-
cause its inevitable effect is to encour-
age useless and extravaganza apprOpria-
tions of public money, in violation of
those principles of public economy
which have been found to be absolutely
essential to the preservation of popu
lar form of government and the conSti-
tutional limitations of its powers. 1t is
safe to say that SO long as this policy
continues, largeSSeS and bOuntieS for
promotion of purely private enterprises
will be demanded and new fields for the
exercise of legislative labor, new OBJ
jectS for the appropriation of the pub
lie money, will be discovered. But, it
is said. we still have outstanding a vast
public debt, and that no great DAN
the present rates of taxation are con-
tinued and the surplus applied to the
purchase of the bonds. L believe that
so long as we actually have surplus
it's application to the eXtinguiShment of
the public debt is the very best use that
can be made oft. But | totally dissent
from the proposition that it is either
wise or Just to pursue fiscal policy
that taxes the people merely for the
purpose of raising revenue to be used
III the purchase, at premium, of
THE UNMATURED BONDS
Of the government, except so far as may
fn 70
quirementS of the sinking fund law.
And | am not altogether satisfied that
if the revenue could be properly re-
duced it would not be wise to suspend
the operation of the law, to some eX-
tent at least, for some short period of
time. During the last month the sec
tary of the treasury had purchased
of per cent bonds S13,456,000, on
which interest had accrued to the
amount of S53,172. For these bonds.
with the accrued interest, he was COM
PEELED to pay, and did pay, the sum of
ST, 046, 900, or IS, 536, S3S over and above
the amount of the principal and accrued
interest, paying premium of 2619 per
cent. During the same time and under
the same authority he purchased S12,-
404 ZOO Of AZ per cent bonds, on which
interest had accrued to the amount of
SOS, 1000. For these bonds he paid S13.-
379, 900 or $780,, 900 i'll excess of the prin-
cipal and interest, or premium of Z
per cent. This is the situation into
which the government has been forced
by the failure of congress in the past to
take proper provision for the reduction
of the revenue. Millions of dollars are
taken by law from the hands of the
people who earn the money by their
skill in the prosecution of their bust
ness, to be paid over to the bondhOlders
in EXCISE of the legal obligation of the
bonds. If congress adjOurns without
applying the remedy,
THIS UNJUST PROCESS
must 60 Oh indefinitely. In the pres
| ence of such situation we can't afford
to quarrel over details. A reduction of
| the revenue, not by increasing taxation,
as some propose, but by reducing taxa
| ton in such measure as to afford the
| largest measure of relief to the people
| and their Industries, should be the great
and controlling object to which every
| thing else should be Subordinated. l
| do not mean that any industry, how
| ever small and Insignificant, should not
| be carefully considered in friendly
| spirit. But l do mean that the general
interests of the many should be subor-
| dinated to the special interests of the
! few. This is purely a practical ques-
ton. Its consideration necessarily in
wolves discussion to some extent of
the principle On which the power of
| taxation is exercised. There is a
! fundamental and irreconcilable differ
ence of opinion between those who
4 hahpVQ