Evening star. [volume] (Washington, D.C.) 1854-1972, 1893-12-20

ly disposed Of by the adoption of a simple
and comprehensive system which will. as
far as possible. relieve the government from
the onerous obligations now resting upon 1t.
and at the same time secure for the use of
the people q currency uniform in value and
adequate In amount.
One Of the principal difficulties encounter
ed by the Treasury Department results
from the indisposition of the public to re-
tain standard silver dollars and silver GER
tiheates in circulation. With the policy of
maintaining equality in the exchangeable
value OF all our currency firmly established,
and the further accumulation Of silver bull
lion arrested there is no substantial reason
why the silver certificate should not be as
favorabiy received and as literally treated
by the public as any other form of note in
circulation: and. for the purpose of creating
a greater demand for their permanent use
In the daily transactions of the people, 1
have directed that as far as the law per-
mits, and as rapidly as the opportunity is
afforded, the amount of such certificates of
denominations less than ten dollars shall be
increased by substituting them for larger
ones to be retired.a and that the small denom-
nations of other kinds of currency shall
be retired as they are received into the
treasury and larger ones substituted in
their places. As the law now specifically
designates the denominations in which ma
tional bank notes shall be issued, they can
not be changed without further legislation,
and consequently during the present fiscal
year, at least, the $64, $685. S9 in small treas
ury notes are the only ones that can be
lawfully retired to enlarge the use of small
silver certificates. / am of the opinion that
II this policy can be carried out to the ex-
tent of supplying the country with small
silver certificates to an amount sufficient to
conduct the ordinary cash transactions of
the people. and IL, during the same time,
certificates of the largest denominations
were issued in the places of others retired,
so as to encourage the national banks to
hold them as parts OF their lawful reserves,
ha fct{ nlal1 l,o axraI
and ultimately a larger amount of such cur
rency than is now in circulation could be
conveniently and safely used.
The treasury now holds 40, 699, 160 fine
ounces of silver bullion, purchased under
the act Of July IA, 1890 at a cost of $780,
73S,21S, and which, at the legal ratio of
15.9SS to l, would make Isl, 91i, 500 silver
dollars. The coinage of the whole amount
of this bullion, which would employ our
minis, with their present capacities, for
period Of about five years. would. at the ex-
listing ratio, increase the silver circulation
during the time named S55,1566S1 from
seigniorage, besides such additions as might
be made in the meantime by the redemption
Of treasury notes in standard silver dollars.
In order that the departent might be i'm a
condition to comply promptly with any in
creased demand that may be made upon IL
by the public for standard silver dollars or
silver certificates, or that it might take ad-
vantage Of any favorable opportunity that
may occur to put an additional amount Of
such currency in circulation without unduly
disturbing the monetary situation, / have
caused a large amount Of bullion to be pre-
pared for coinage at New Orleans and San
Francisco. and have ordered the minis at
those places to be kept in readiness to COM
mence operations at any time when re-
Quired.
Revision of the Revenue Laws.
The necessity for a comprehensive revi-
sion Of our tariff laws in the interests of
greater Industrial and commercial freedom
need not be urged at great length upon the
present Congress. one branch of which has
been recently chosen by the people with
that object distinctly in view. But 1t is not
improper, under the circumstances, to SUBJ
nit some suggestions upon the general prin-
ciples involved in such legislation and the
best methods of applying them, in order to
secure, as far as possible, equality in the
distribution Of the burdens of taxation, and
avoid, as far as possible, the taxation of
one citizen for the benefit of another, or of
one class for the benefit of another.
The only proper purpose for which taxes
can be levied and collected by the United
states is TO raise revenue for the support of
the public service and the payment of public
obligations and 1t follows as a plain matter
OF justice that no citizen should be required
to contribute more than his equal share to-
ward the accomplishment OF these ends
While absolute equality is not attainable
under any system of taxation that can be
devised. 1t is possible to correct the fragrant
Inequalities which characterize our existing
legislation; and in doing SO, II is the impera-
tive duty of those who.a-e charges with the
responsibility of making the revision to Sc
iect such subjects for taxation and prescribe
such methods of assessment and collection
as will secure the necessary means for the
support or the government with the least
possible injury to any part Of the people,
but without regard to the groundless ap-
p-ehensions or unreasonable opposition of
timtd or selfish interests.
The imposition Of specific or compound
rates OF duty is SO inconsistent with the
true principles Of just taxation that moth
Ing but the plainest necessity can Justify
1t In any case unless it be in few ex-
ceptional instances where all the articles
taxed at the same specific rate are so near
~ equal in value that the danger of unjust
discrimination is not greater than ii would
be If an official valuation were required
tar1n IS tax upon consumption, and the
condition of those who are compelled by
poverty of means to purchase and use the
coarser and cheaper grades of goods should
certainly protect them against unjust dis
examinations. even IL II does not entitle
them 10 some measure Of exemption from
the exactions of the government Taxation
according to value does injustice to no one.
unless the rates are too high or are unequal
~ adjusted upon articles Of the same gen.
eral character and utility. 1t is distinctly
| the American system of taxation, and is
recognized as Just and equitable by the peo-
pie in all the states in their laws for the as
ScsSiueut anu cOlleCtiOn OF local revenues
, upon the ad valorem basis. 1t is not proba-
bic that any other method would be tolerat-
ed in any state of the Union where the tax
Is imposed solely for the purpose OF raising
revenue with no incidental or Interior object
IN view affecting the public health or NOR
ais; and 1t would never have been tolerated
in our federal legislation, except in rare in
stances. II the use Of the taxing power had
been limited to the real purpose for which
it was delegated.
But the objections urged against the ad
valorem system Of tariff taxation are not
generally based upon the proposition that ii
lacks the element of justice or equality but
| usually upon the grounds that 1t is difficult
of administration. and that 1t furnishes
strong inducements for the commission of
frauds and perjuries in order TO secure false
valuations of imported goods. While there
Is some force in this contention, I am not
able to see how unequal taxation can be
justified upon the ground that the burdens
upon the people ought to be increased in
order that the labors of public officials may
be diminished, or that the honest citizen
should be punished in order to prevent the
dishonest one from attempting to violate
the law.
So far as the inducements to commit
frauds and perjuries constitute objections,
the slightest examination of the subject will
show that they are much greater under the
system OF compound rates, which Is one of
the most prominent features of our exist
ing legislation, than they could possibly be
under a purely ad vaiorem arrangement of
duties The tariff Ia in