New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-09-14
MP. WELLS'S SOLUTION.

IL Is 10 be 1earcu tha' inc uV>t'h! VI INV
Hon. David 4. Wells is to fashion for the
Democratic party plans of taxation which are
altogether too sensible for adoption. In his
first endeavor to serve the Democrats oil TINS
State he proposed a scheme Of local taxation
which was SO reasonable that 1t obtained no
favor whatever. lie now endeavolS to meet
the most troublesome Of all problems for the
party in power, namely. how increased revenue
can be raised 1t is only Just to say that his
suggestions from an economic point of view
have much merit lie reports to Secretary
Carlisle that the tax on distilled liquors is al
ready so high that IN attempt to secure greater
revenue from that source would be likely TO
prove self-defcating. But he thinks the tax
on beer can safely be doubled, and the tax on
tobacco raised to the rates Of So, and he be-
lieves that an additional revenue of $50 OOO.-
600 can be immed lately secured.
The economic phase of this question. no one
will need 10 be told, differs widely from ATS
political aSpect In recent edltol1a! The
New-York Times" declared that There Is no
plan of immediate new taxation that IS nc:
either financially uncertain or politically I'M
safe" Mr. Wells devotes a letter of over six
columns to his reasons for believing that In
crea sed taxation of beer and tobacco wond NOT
he financially uncertain. Presumably the OBJ
lection 10 these taxes was that they would he
politically unsafe. but this Mr. Wells does not
discuss. There are those who will hardly ac-
cept his statement that $50 100000 more can
be collected each wear by the tax Oh beer with
out materially diminishing the profits Of the
brewers or the wholesale or retail dealers.
Somebody would have 10 pay the additional
$50 .OOO. 600 and il seems clear that the con-
srmelS would not.
Mr.. Wells shows that 400 glasses or half
pints in a barrel now bear tax Of only fifth
Of a cent pei glass. and double the tax would
still be too small sum to be added 10 the pI1ce
CHARGED consumers Even when beer is sold
by the quantity to employees at 81 cents per
half-p;nt the brewer gets about IS per barrel,
whereas Mr.. Wells says, Beer of good quality
could be bought during the last year III guam
ttv or at wholesale in New-Yorl; or its vicinity
for So % per barrer' 50 that there would be
little occasion for taking the additional tax
from consumers rather than from the liberal
protits For most Of the beer consumed some
body receives cents glass. or nearly 80
per barrel 50 that the proposed additional tax
though a large SUN. could be borne without
distress. Mr. Wells states that the business OF
brewing is one Of the most successful indus
tries. that participation in II has been regarded
bv foreign capitalists a one of the most al
tractive investments in this country. and that
no branch Of business returns Il larger profit
on the labor and capital employed than the
retailing Of malt liquors. Hence it IS recon-
mended that the tax be raised from - 10 -
per barrel.
The reasoning IS 10 tobacco i less conclusive.
II is trne tina: the reductions Of taxes in 1883.
and again in 1856. and again in $50. have
cnt down the revenue about SIS 100000 rs
Mr.. Wells believes, and he urges that the taxes
| on this commodity are relatively higher IN
other countries. and that such tax is not
| obligatory. but in the nature Of a voluntary
assessment on the part Of the consumer. Mr..
Wells fails at this point to consider how far
| the great increase in consumption may have
beer due to past reduction Of taxes, or how
much consumption might decline If the taxes
Of 1882 were restored But he i doubtless
right in the belief that large increase Of
revenue would be obtained provided the cOln-
try were prosperous and the purchasing power
of the wage ealners were not diminished
The whole plan of Mr.. Wells is open to crit
! icism because ii assumes rate OF cOnSump-
| ton which cannot continue when thousands
of mills and factories are closed The decrease
Of quarter in internal revenue receipts in
/ August suggests how easily $4,000. 900 a year
might be taken off the receipts from taxes now
in force, and in such state Of domestic in
dustres any increase in the cost Of taxed prod
ucts would be likely to render the Shiiniagc in
consumption still greater. Yet no better way
has vet been suggested of raising the additional
revenue which the Government requires. cX-
cepting the simple one Of restoring permanently
the industrial and economic conditions that
| ovista1 in n,.tnber