The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-12-30

Secretary C.riisl. ia his report asks for
express authority 20 issue bonds since
thsre IL grave dosb: expressed By the IL
tsliigsnt mea q both parties whether the
faw nov gives hin this snthorssy, congress
oagh. 70 anthorizs . bond issns si once
With sn impending deficit and steadily
decreasing gold reserve, the treasury - la
danger OF bankruptcy unless the secretary
r. 81 ones authorized 10 use the govern
nsnI's credit. Senator John Sherman in
the last congress last spring strongly
insisted thst the secretary shonid be en-
powered 70 issEe bo5ds for the purpose OF
strengthening the gold reserve, and point
ed on. that under existing lar nothing
bot per cent and iong-tern boads could
hs issssa, while VIA. vas desired was 81.
thority 20 Issue shorter term bond bear
ing ; PER cent. interest or less, which the
government could retire at pleasure and
thereby stop the interest charges - soon -
the gold supply in the sreasury warranted
redemption
The Republicsos in congress adopted
the view Of Senator Sherman, but the
Democratic senators and representatives.
refused to support shsrman's proposition.
This left Secretary Carlisle With his hands
tied, lsf. him helpless 70 meet an emer-
gency likely TO arise at any moment. The
gold reserve OF the treasury hiss been i'm
paired about So, ooo. 900. Secretary Car
fisle might have been clothed with proper
authority TO issue bond. last spring by thu
last congress had be supported ths views
Of Senator Sherman, but he gave them no
support and his party refused to help
enact them. Secretary Carlisle has learned
a great deal since last spring. and he now
proposes the plan of authorizing the secre-
tary, as occasion may demand, to Issue
and sell directly TO the people through
sub-treasuries and postoffices, per cent.
bonds redeemsble after i've years. These
bonds are to be printed in denominations
as low as SIS. thus placing them within
the reach Of people of small income. These
bonds would not be useful for bank note
panies or large investors. owing TO their
short time TO run.
The secretary proposes also to increase
the tar on whisky, cigars and cigarettes,
and to lay new taxes on playing cards.
cosmetics, perfumeries, legacies and sue
tain corporate interests-as, presumably,
railroads, telegraph and like quasi-public
corporations. Many Democrats. like
David A. Wells, think an increase OF the
tar on beer preferable to an increase of the
whisky tar, which IL is believed is as
putting q premium on Illicit distiliing.
Secretary Carlisie's scheme of taxing in
comes from corporate investments was
not favored by Secretary Of the Treasury
Manning under Cleveland's first term.
Secretary Manning. In his annual report
for 1856, has this to say on the subject OF
Federal taxes on incomes:
"Direct taxes must be apportioned
among the several states according 10 their
population. Our experience OF the diff
culties and INEQUALITIES of the direct tax,
when applied TO land, of which q square
foot in one place is costlier than one hum
bred square miles in another place; or,
when applied to individual incomes 1.-THE
most direct tax conceivable, for when
paid il cannot be shifted; II has no roper
cussion. which is the only common feature
Of the taxes held 70 be direct before war
had disturbed the vision Of courts and
iegisiatures) under the prescribed rule of
apportonmant to the states according to
population, confines their utility to state
purposes and excludes them from the first
parpie,r Of Federal TAXATION"
Secretary Carlisle would. however, tax
the objects which are now taxed By the
states exclusively and are the main sup
port Of the state government. This was
objected to by Secretary Manning as
double taxation and oppressive taxation.
and rs an unnecessary and unwarrantable
trespa.s on the limited taxing domain of
the several states. To compel the wealthy
TO pay taxes and permit the poor TO escape
would be class legislation. and the propo-
sition TO tax corp orate incomes and ex-
empt others is a new and dangerous de-
par,ure from uniformity and justice in
taxation.
The proposition to raise the tan on
spirits 10 cents would practically prove .
gift of many millions TO the combination
OF distiliers, and for this reason 1t was re-
garded by d. A. Wells a. undesirable and
Improbable. Secretary Cariisle's pro-
posed coinage of silver bullion on hand so
that s.. oo0. 600 may be issued against the
seigniorags is nothing but measure OF
imitation applied to increase q currency
whose volume has been increased Sill, 0oo.-
co during the last year.
Taking all in ali the report Of Mr.. Car
isle will not generally be regarded as an
able document from tbs standpoint of q
sound fuaueier and thoroughly trained
business man. II reads like the work Of
an able lawyer, who has been taught a
good deal that was new and true 10 him
by events, but is still dominated by s. great
many crude notions concerning questions
Of tariff and finance.