The evening world., 1893-12-20

relations which It's different forms now bear TO
each other.
TROUBLE WITH SILVER.
As to the circulation of silver and sill
yer notes, the Secretary reports:
One Of the principal difficulties encountered by
the Treasury Department results from the In
yer dollars and silver certificates In eircula-
Why this should be the case is not easily
understood, for. although these certificates are
sUs are. I by the acts seu poi ISIS and isss, made
receivable for all public dues, and by the &C, OF
May IL. 1889. National banks are authorized TO
hold them as part OF their lawful re-
For the purpose Of creating a greater demand
tor their permanent use In the daily transactions
OF the people have directed that, as far as the
law permits, and as rapidly as the opportunity is
nations less than ten dollars shall be Increased by
substituting them for larger ones to be retired. and
that the small denominations OF other KINDS OF
currency shall be retired as they are received into
the Treasury. and larger ones substituted In their
places.
coin the silver seigniorage now on hand
In case of increase In the demand for
dollars or certificates are also reported
AS TO TARIFF REVISION.
The Secretary recognizes the necessity
for a comprehensive review OF the IariH
laws, but ~refrains from all but sugges-
lions upon the general I Tlnfllp pn 9th UI r'y tbe
requirement that the burdens should ran
as equally as possible among the people.
Regarding the manner of fixing rates, the
Secretary says:
AGAINST SPECIFIC DUTIES.
The imposition OF specific or compound rates OF
duty is 70 Inconsistent with the true principles
Of Just taxation that nothing but the p'a,nGst
necessity can Justify II In any case, unless IL nc
In a few exceptional instances, where all the arti-
cles taxed at the same specific rate are So merry
equal In value that the danger OF unjust discriml-
nation Ia not greater than u wonlh
ciai valuation were required. II Is manifestly un-
81 tax on q ward Of cloth worth 81 that another
citizen pays on a yard Of cloth worth b'
AZ TO AID vALoREM RATES.
But the objections urged against the ad valorcm
upon the proposition that It lacks the element
OF justice or equality, but usually upon the
grounds that It Is difficult OF administration, and
that 1t furnishes strong inducements for the com
mission OF frauds and ~perluries In order TO secure
false valuations OF imported goods.
While there is some force in this contention
an not able to see how unequal taxation can
be Justified upon the ground that the burdens
that the isbors OF public officials may be. dimln-
lshsd. or that tine honest citizen should be pun.
lshed In order to prevent the dishonest one from
attempting to violate the law.
II II shall be demonstrated that official intelli-
. gence and integrity cannot be safely relied upon
for an honest collection OF the revenues under the
existing system OF Indirect taxation. II wiz be
como necessary to consider whether some other
method cannot be devised to raise moneys for the
support Of the Government.
The Secretary discusses the matter OF
free raw materials and cheap necessaries
OF life on the same general lines FOL
lowed by the Ways and Means Com
mittee In the report printed yesterday.
INCOME AND LEGACY TAXES.
The Secretary's report says:
Taxes upon iegacies 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 ex-
cises which II Is competent for the United States
to impose upon incomes according to their actual
value or amount.
They are not inquisitorial or liable to evasion
by the fraudulent suppression Of facts. because
the assessments or returns need no, De based
persons charged with their payment. but upon
the public records and the regular and authentic
accounts Of the corporations and companies In
which the Investments have been made, and they
have the additional merit OF being imposed en-
which Is not earned by his labor or skill, but
which. In the cases of legacics and SUGGESTIONS.
10 acquired by mere operation Of law or by
gratuitous bequest. and In the case Of incomes
from Investments In corporations and Joint
stock companies, by the simple earning capacity
OF his capital as such, without personal effort
upon his part.
SPECIAL TAXES ON II SPECIALLY IA
voRED
When the necessities Of the Government compel
Il to resort to additional sources Tor procuring
: revenue. Il Is but fair that It should make Its re-
~quisitions mainly upon those whose possessions
are OF such a character as enable them to es-
cape. wholly or partially, the general burdens
Of taxation rather than upon those who are al
ready taxed substantially 10 the extent OF their
ability to pay; and as incomes from capital In
vested 10 the stocks and securities OF the insti-
ton under any law Of the United States or the
laws Of the several States, except In a few In.
stances, II cannot be considered unjust to exact
n small percentage Of their amount for the public
use.
CAPITAL EscAPEs TAXATION.
II 10 a generally recognized fact that capital In
tho form Of mUney. bonds and other evidences OF
debt does not usually, by reason OF It's Intangible
and transltory nature, bear Its due proportion OF
tho burdens Of taxation under the revenue laws
Of the several States and municipalities, as com
pared with real estate and visible personal prop
erty; and, while no discrimination should be made
against II. whether 1t be represented by corporate
or other Investments, there appears to be no good
reason why the contributions for the support OF
the public service generally should not be equal.
iled as nearly as possible by Including this Kind
OF property In the Federal revenue system,
DISTINCTION BETWEEN NCoME
But. II II 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 VIII
valuable franchises, privileges and immunities not
enjoyed by the individual citizen. and that these
frequently contribute more largely To their earninl
capacity than the character or value OF their Other
property.
In this respect more favored than their fellow
citizens generally; and the ekGhansesme yalu
incomes derived from them, is greatly increased
because they are so favored.
The Secretary urges the necessity 70
National economy, In the present condi
Chinese law difficulties and asks tn
prompt attention of Congress to his rec
concentrations about bond issues and ex
tended powers for financial em~ergencies
TRIUMPH OF JIMMY OLIVER.