The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-12-21

the socalled protective system. A tax upon
iron and wool necessitates a still higher rate
upon all forms of manufactured iron and
steel and upon all kinds of wooden goods,
and these progressive increases in rates are
the manufacturing process until the COM
pleted article is ready. for sale and con-
production is made so great that our man
u%facturers can neither exclude their foreign
s s6meeq their tr ra9e i6 9u the 0m mark mark of other her
countries. while the American consumer Is
compelled to reimburse. the increased outlay
profit added.
'If the worlds store of raw materials
we're as Scffssibie to the American work
manufacturing countries, his superior Skill,
sobriety. and industrious habits would en-
many parts of the world where his products
are now never SEEN. with machinery, i'm /.
plements and various kinds of textile fabrics
or Sucn Qualities ana az Such prices as
would exclude all competition and create a
demand for a large increase of our produc-
tive forces. With free raw materials as a
permanent feature of our revenue legisla-
ton. the demand for labor would steadily
grow with the extension Of trade, while
enlarged opportunities for the profitable in
vestrlent of capital would stimulate the
spirit of enterprise among our people and
greatly diminish the danger of periodical
suspension. lockouts and strikes which have
i'm recent. years so seriously interrupted our
industrial progress.
Nearly allied to the policy of free raw
materials is that of cheapening the neces-
SarieS of life for the masses of the people.
Legislation which unnecessarily increases
the cost OF living is wholly without juStih-
cation or excuse, and in the revision of
our revenue laws this Objectionable policy
should be wholly discarded in the interest
of both labor and capital. So long as the
government maintains a system of taxation
which affects the prices of commodities in
the markets ii should be so applied as 10
exempt, or bear as lightly as possible upon.
those articles which are essential to the
health and comfort of the people, such as
food nlnfhinO and shelter and Innn tho
tools and implements of trade employed by
labor in earning the means of subsistence.
LuxurieS and articles of taste and fashion,.
the use of which is entirely voluntary, are
proper subjects of taxation under any sys-
TEN OF raising revenue, and upon these
the rates may very properly be placed at
the highest revenue point. Such taxes do
not ordinarily impose much hardship upon
those who pay them, but taxes which di-
minish the purchasing power of the labor
ers wages in procuring the necessarieS of
life strike at the foundations of the social
system, because the material welfare of all
our communities depends, in q large meas
ure. upon the prosperity and contentment
of those who labor in some form for their
own support.
REVENUE ESTIMATES.
1T is estimated that the revenues for the
fiscal year 1895 will amount, upon the basis
of existing laws, to si54, 427, 74S, and that
the expenditures, including the sinking
fund, Will amount to $44S, 303, 7S9. The esti-
mated revenue from customs is $3.50. 600, 600,
and the total estimated receipts from all
sources will exceed the estimate of ex-
penditures Sc, I20, 1853. Assuming these
amounts to be approximately correct, it
will be necessary in any changes that may
be made in our revenue laws TO provide for
raising about $1Si, 600, 900 from customs alone
or partly from customs and partly from
such other subjects of taxation as Congress
may see proper to include in our internal
revenue system. If the amount and value
of the importationS of the same character
of dutiable merchandise should not, during
the fiscal year 1895, exceed the amount and
value of such importations during the fiscal
year 1893, the receipts under the measure
now pending would be about $122, OO0,0 900.
that the proposed reductions in the rates
of duty will encourage importations 10 a
very considerable extent and that. conse-
quently, the revenue Will not be diminished
in the same proportion as the rates are re-
duced. Moreover, experience has shown
that under all our tariff legislation there
has been an almost constant tendency to-
ward annual increases in the amounts and
values of dutiable imports, even though the
rates OF duty remained the same
The total value of dutiable imports in
1868 was $329,G6l ,S02. and the receipts were
1854, AGA, 500. and although tea. coffee and
hides, important revenue articles, were all
subsequently placed upon the free list, and
some other. change made in the law, the
i value of dutiable imports had increased
to sac, 9l6, SS4 in 1885, and the receipts
amounted to 1914. 706. 496. In the year 1884,
the first after the passage of the tariff act
L " Il 4 D. AARfT III Noiot VI NANAb IN
ports was $456, 295. l2t. and the receipts $780,
067, 4S9. but in 1890, the last full year under
that act, the value was S5OI,5n, I64 and the
receipts $229. 66S. 5S4. There have been but
two entire fiscal years since the act of Oct.
6. 1899, and during the first one, 1892, the
value Of dutiable imports was $55,526 74l,
and the receipts $l77. 452, 964, while in 1893 the
value was 500. 2S2.519, and the receipts s202,-
355.0l6, or an increase of nearly ID per cent.
ITO what extent the importations will be
i'm the rates of duty 1t is, of course, i'm
possible to ~foresee, but it is reasonable TO
conclude that this cause. together with the
natural increase of our purchases from
other countries. will result in a much
larger revenue from customs in 1895 than
is Indicated by a mere comparison of pro-
posed reduced rates with those under which
the collections were made in 1893. L am of
the opinion that with proper economy in
public expenditures. which IL is hoped will
result in a considerable reduction from the
estimates, an increase of SO,0OO,O00 to the
revenue for the fiscal year 1898, by the i'm
position of additional taxes under the in
ternal revenue system, will supply suffi-
cient means for the support of the govern
ment, and that this sum can be raised
without seriously disturbing the business OF
the country or doing injustice to any part
of the people.
NEW INTERNAL TAXES SUGGESTED.
Many different methods of providing this
additional revenue have been suggested and
discussed, and after a careful examination
of the whole subject L have reached the
NAAhN ~ NoAA ~ AAC1N ColAN III
and justly raised by increasing the tax on
distilled spirits 10 cents per gallon and by
additional taxes on cigars and cigarettes,
and the imposition of new taxes on playing
cards, cosmetics and perfumeries, legacies
and SUGGESTIONS, and incomes derived from
investments in stocks and bonds Of corpora
tons and joint stock companies.
The increased tax on distilled spirits,
cigars and cigarettes should be imposed
upon all such articles in existence and
upon which the revenue has not been col
lected at the time the act takes effect.
but a reasonable time should be allowed
in the cases Of the new taxes in order
that the necessary stamps may be pre-
pared and distributed and the Necessary
rules and regulations made and promul-
gated. The propriety. under the circum-
stances, of increasing taxes upon distilled
spirits, cigars and cigarettes, and the i'm
position of new taxes at a reasonable rate
upon playing cards and cosmetics and
perfumes will not, l think, be seriously
questioned, except by some of the pro-
ducers of these articles, who constitute
comparatively q small amount of the peo-
pie. Taxes which directly or indirectly in
crease the cost of the actual necessaries
of life should be avoided whenever it is
possible TO do SO, but the consumers of
such articles as are not essential TO health
and comfort ought not TO complain when
called upon to contribute a part OF their
voluntary expenditures to the support of
the government.
Taxes upon legacies and SUGGESTIONS.
and incomes acquired from investments in
stocks and bonds of corporations and joint
stock companies, are less Objectionable in
their nature and in the methods of col
lection than any other excuses which il is
competent for the United States to i'm
r.ua rrpan Incomes 0RpnlqTinU m their ~ ain