The evening world., 1893-12-20
- itr character By disturbing in any manner the
r~elstions which It's different forms now bear to

h IT, character By di..urblns in any manner IN.
~feietions which It's different forms now bear to
TROUBLE WITH SILVER.
Az to the circulation of silver and sill
yer notes, the Secretary reports:
One Of the principal difhculties encountered by
az .o Trss,ur 2, p ,ss ssS,,s to ,eS ss,.in fs sIsnd. .ns eli.
YER dollars and silver certificates In e'rcula-
Why this should be the case is not easily
understood, for. although these certificates are
not legal tender in the payment OF private debts,
receivable for all public dues, and by the act OF
May IL. 1889. National banks are authorized to
hold then as part OF their lawful re
For the purpose Of creating a greater demand
OF the people I have directed that. as far as the
law permits. and as rapidly as the opportunity is
~inationa less than ten dollars shall be increased by
substituting them for larger ones to be retired; and
that tho small denominations OF other kinds OF
currency shall be retired us they arc received into
places.
Preparations ordered at the minis to
coin the silver seigniorage now on hand
In case of increase in the demand for
dollars or eertihcates are also reported'
The Secretary recognizes the necessity
for q comprehensive review. OF the Tarin
laws, but refrains from al. but sugges-
: lions upon the general principles OF reNe-
nue. laws and their application, with the
requirement. that the burdens should fall
rs equally as possible among the people,
Regarding the manner or liking rates. 'he
Secretary says:
AGAINST SPECIFIC DUTIES.
Ths Imposition Of specific or compound rates OF
duty is 90 Inconsistent with the true pr, nhsipsss
necessity can Justify IT in any case. unless II pe
IN a few exceptional instances, where all the arti,
equal in value that the danger OF unjust dfscriml-
nation is not greater than Il r.onld hc !, =. " ~
Just to compel one citizen to pay The sane a,,, at
q tar on 4 yard OF cloth worth 81 that another
citizen pays on n yard OF cloth worth ~.
AS TO AL vALoREM RATES.
But the objections urged against the ad valorem
system of tariff taxation are not general! based
upon ,u. ne p . saosIi,v ,h' su, u usually ,STni the upon se"'t the
grounds that II 10 dificuit OF administration and
mission Of frauds and %perjnries In order to secure
false valuations of imported goods;
1 am not able to see how unequal taxation can
Be- distilled upon the ground that the burdens
Snon ,s the ,I people ., oq naS,,. to o, ne e ,m'r %aS be y" di HrInE
ished, or that the honest citizen should be pun
ished In order TO prevent the dishonest one from
n II shall be demonstrated that oraclai lntelli-
gence and integrity cannot be safely relied upon
for an honest collection OF the revenues under the
existing system OF indirect taxation. IT VIII be
some necessary. to consider whether some other
method cannot be devised to raise moneys Tor the
support Of the Government. .
The Secretary discusses the matter OF
free raw materials ana cheap neCeSsaTitS
OF life on the same general ines fol-
lowed by the Ways and Means Com
mittee In the report printed yesterday.
INCOME AND LEGACY TAXES.
n Secretnry's report says:
Taxes uron legacies and SUGGESTIONS and in.
comes acquired from Investments In stocks and
bonds Of corporations and joint stock com.
panies are less Objectionable In their nature and
In the methods OF collection than any other eS-
cises which IL Ia competent for the United States
% impose upon incomes according to their actual
They are not inqulsitorial or liable to evasion
BY the fraudulent suppression OF facts, because
upon Information cxtortcd by tho law from the
persons charged with their payment but upon
accounts Of the corporations and companies in
which the Investments have been made. aud they
tireiy upon that part Of the citizens income
which is not earned by his labor or skill, hut
II acquired by mere operation OF law or by
sratuitous bequest. and in the case OF incomes
stock companies. by the simple earning capacity
Of hi. capital as such. without personal effort
upon his part.
SPECIAL TAXES on THE SPECIALLY rA-
vORED.
<1pn the necessities OF the Government compel
8 to resort to additional sources for procuring
yevenue. II Ia but fair that II should make its re-
questions mainly upon those whose possessions
are OF such n character as enable them to cs-
Of taxation rather than upon those who are al
ready taxed substantially 10 the extent OF their
blIIty W = aH4 u n ihtbHt'V ilpbf Nspi'bN ""
vested In the stocks and securities OF the irsti-
tutions mentioned are not now subject To taxa
tion under any law OF the United States or the
laws OF the several states, except In u Few IN
stances, II cannot be considered unjust to exact
' small percentage OF their amount for the public
CAPITAL scAPE TAXATION.
It 10 generally recognized fact that capital In
the form OF money, bonds and other evidences OF
debt does not usually, by reason Of Its intangible
and transitory nature, bear Its due proportion of
the burdens Of taxation under the revenue laws
OF the several states and muniCipaltlef, as com
pared with real estate and visible personal prop
erty: and. while no discrimination should be made
against II. whether II he represented bN corporate
or other Investments. there appears TO be no good
the public service generally should not he equal
ICED as nearly ns possible by including this Kind
Of property in the Federal revenue system,
BETWEEN INCOMES.
but, ~ It shall be said that there is no better
reason for imposing a tax upon incomes derived
from investments OF this kind than there would be
in taxing incomes from other sources, the answer
10 that these institutions are Invested by law with
valuable franchises. privileges and tmmunitics not
enjoyed by the individual citizen, and that these
frequently contribute more largely To their earning
capacity than the character or value OF their other
property.
In this respect more favored than their fellow
citizens generally. and the eHChangcabie value
Of their shares and honda, as well as the annual
incomes derived from them, is greatly increased
because they are SO favored.
The Secretary urges the necessity for
National economy, In the present condi-
ton of the Treasury, touches upon thc
Chinese law difficulties and asks the
prompt attention of Congress to his rec
concentrations about bond issues ana ex'
. tardad nnyparc for fnanriul ntnprpppcipa