The Forrest City times., 1891-01-23

These estimates were made according to certain rules which cannot be ex- plained within the limits of this article, but which certainly do not err on the side Of exaggeration.
 Using the same rules, Mir Shearman proceeds here to show how the wealth produced in 1890 is distributed This wealth he estimates at Sl3.ooo, GOO, GOO. and after allowing four per cent. for repairs and replacement he finds that the net incomes are distributed as fol- lows:
 Families. Average income. Total income. 1S0, 600. .S25 00o Sa, 500 0Oo, GOO n,620,0o. .....-........-. 56o 10000, o0l l30000oo Se5o SIP, 800 900 900 In treating the above figures from the standpoint of taxation Mir Shearman reaches results which are most amazing. Without any tax at all the 1so. coo rich, he finds, can save on an average two thirds of their incomes, while the rest of the people could scarcely save one-fifth of theirs. A system of taxation, there fore, like our tariff system, which is levied upon the expenses of the people, rather than upon what they own. bears far moro heavily upon the poorer people, who must spend nearly all they make, than upon the rich, who need to spend only one-third of theirs Estimating this tax burden upon expenses at 15 per cent, the poorer classes would pay Sa60, 900, 600 year, while the rich would pay only S225, ,oo0, 900.
 But a part of the total thus paid by rich and poor goes, not to the Govern ment, but 10 small section of the richer class itself. This part MT Shear man estimates at one-third, which is certainly very low estimate In other words, about S40o, 000. .000 is annually restored to the richest class, The results of this taxation may be thus displayed:
 ANNUAL SAVINGS OF THE RICH. Natural savings. 80 0lo, COO 900 Deduct taxes etc e....... .S225 0o0,0oo
 Add profits from tax sys-
 ten... .................... aoo,oou,ooo
 Total. .s3, ,l75 ooo. 900
 ANNUAL SAVINGS OTHER GLASSES. Natural savings ..-.. ....-......,-Sl, ,0oO Deduct taxes, etc.................. 960, oo0. GOO
 Net,....................... s6io, ,0oo, GOO In this way 1t will be seen that nd- rect taxation causes the rich to gain on other classes at the rate of more than S2,00o coo, 900 each year.
 
 tion according to wealth were in use, a far different distribution of the burdens of taxation and of the accumulatious of wealth would be reached. Mir. Shear man makes rough estimate that direct tax of one and one-iifth per cent. on all property at it's full value would thus be required. Then the burden of taxation would be thus divided: lSo, GOO rich would pay S52o, coo, GOO, 12, SEQ, 900 others would pay S225, ,00o,O GOO. If a system of direct taxation were introduced 1t would result in saving to the middle and working classes of about S750, oo0,- 900 year forever.
 To illustrate the force of these figures, Mir. Shearman takes an individual case. The owner of SIC, LOGO, GOO need not now pay more than S15.0oO year in indi- direct taxes; and if he is a protected owner of mines or factories, this very indirect taxation often brings him in S10o,000 year. On the other hand, under direct taxation he would pay S120, 900 year In taxes, and he would get back nothing out of the pockets of other people. Mir. Shearman estimates that If the extra profits made out of in- direct taxation even by S10, ,0Oo, GOO capitalist were put at compound interest
  five years an amount equal to his original capital
 As there is, however, already some direct local taxation, the estimates above given must be reduced by about one- eighth, the probable proportion of such taxation to the whole volume of taxes In review of these remarkable figures, Mir. Shearman asks whether the billion are will come His conclusion is that if the existing system of indirect taxation continues, the millionaire Is certainty. If things continue as At present, at least one millionaire can be produced in forty years by merely putting money at per cent compound interest, and in sixty years several can be produced.
 But Mir. Shearman thinks that tho billionaire will not come for the very good reason that our protective tariff system is doomed. The passage of the Mckinley bin has set forces to work which will surely undermine it. The repeal of the sugar tax, which was in- tended to save the protective system will inevitably work it's ruin by teaching the people by one great object lesson, the effects of protection. With the enor- nous permanent expenses which the Republicans have saddled upon the coun-
 
 near future, no system of tariff taxation can be devised which will produce enough revenue without Q tax upon sugar.
 But, once sugar is cheapened by the abolition of the tariff tax on it, no party will ever venture to reimpose tho tax The party that would do it would be voted out of existence at the very next election.
 The Republicans, therefore, have themselves made some form of indirect tax, perhaps the income tax, inevitable. The last election has doomed tho wool tax, and the wool growers have threat ened that the tax on wooden goods shall follow the tax on wool Blaine's reel procity, too, is going to take the wind out of the protection sails. Altogether the outlook for the protective tariff sys- tenn is extremely gloomy, and as the reign of the extortioner is fast drawing to . close the millionaire will not come