The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1893-12-27

additional taxes on cigars and cigarettes.
and the imposition of new taxes on play
ing cards, cosmetics and perfumeries, leg
acies and SUGGESTIONS, and incomes derived
from investments in stocks and bonds of
corporations 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 prepared and
distributed and the necessary rules and
regulations made and promulgated. The
propriety, under the circumstances. Of in
creasing taxes upon distilled spirits, cigars
and cigarettes, and the imposition of new
taxes at reasonable rate upon playing
cards and cosmetics and perfumeries viii
not, / think, be seriously questioned, eN-
cept by some Of the producers Of these arti-
cles. who constitute comparatively q small
part OF the people.
Taxes which directly or Indirectly in
crease the cost Of the actual necessaries Of
life should be avoided whenever ii is pos
sible TO do so, but Fle 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 voun-
tary expenditures TO the support Of the
government.
Concerning an Income Tax.
Taxes upon legacies and SUGGESTIONS, Ond
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 collec-
ton than any other excuses which it is
competent for the United States to impose
upon incomes according to their actual
value or amount. They are not inquisi-
torial or liable to evasion by the fraudulent
suppression of facts, because the assess
mentS or returns need not be based upon
information extorted by the law from the
persons charged with their payment but
upon the public records and the regular
and authentic accounts of the corpora
lions and companies in which Jhe invest
mentS have been made; and they have the
additional merit of being imposed entirely
upon that part of the citizens income
which is not earned by his labor or skin,
but which, as in the cases OF legacles and
SUGGESTIONS, IS acquired by mere operation
Of law by gratuitOus bequesL and in the
case of incomes from investments. incor-
porations and joint stock companies. by
the simple earning capacity OF his capital
as such without personal effort upon his
part
When. the necessities Of the government
compel IL to resort to additional sources
for procuring revenue ii is but fair that
it should make its requisitions mainly
l1poO those vvhosa DosseesiOus are of sllch
character as enables them to escape,
wholly or partially, the general burdens
Of taxation, rather than upon those who
are already taxed substantially TO the eX-
tent Of their ability 10 pay, and as incomes
from capital invested in the stocks and Sc
curities Of the institutions mentioned are
not subject to taxation under any law of
the United States, or the laws of the sew
eral states, except in few instances, II
cannot be considered unjust to exact q
small percentage OF their amount for the
public USE It is a generally recognized
fact that capital in the form OF money,
bonds and other evidences OF debt does not
usually, by reason of it's intangible and
transitory nature, bear its due proportion
of the burdens OF taxation under the rev.
anue laws OF the several states and munic-
qualities as compared with real estate and
visible personal property, and while no
v-svy,sr. ion, CHI hn f-z
whether il be represented by corporate or
other investments, there appears TO be no
good reason why the contributions for the
support OF the pubic service generally
should not be equalized as nearly as posi-
BILE by including this kind Of property in
the federal revenue system.
But If 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 in
comes from other sources, the answer Is
that these institutions are invested by law
with valuable franchises, privileges and
Inmunities not enjoyed by the individual
tribute more largely to their earning
seaRaeitZ tar the ehRsaster or .value -2f
ktocks and securities are IN this respect
more favored than their fellow citizens
generally. and the exchangeable value of
their shares and bonds well the an
nual incomes derived from them, are great
w increa sed because they are so favored.
A tax Of l per cent upon an income of
50 900 derived from an investment Of $4,000
in a per cent. stock would amount to $50.
a sum so insignificant that the investor
could not reasonably claim that the fran
chises and privileges granted TO his debtor
had not added fully that much TO his re-
ceipts.
gress, in this connection, that the present
and prospective condition Of the treasury
and the general state of the country de-
mand a policy Of the srictest economy IN
public expenditures consistent with an eff
cient administration OF the laws. Reduc-
tons OF taxation cannot be logically in
sisted upon or be made practically bene-
fetal without corresponding reduction OF
expenditures; but such a reduction cannot
be permanently effected by merely with
holding appropriations required for the
broper execution of existing laws, which
impose duties upon the heads of executive
departments and other public officials. De-
fciencies are not savings but as general
rule result in larger expenditures than
would have been made If adequate spprO-
prations had been granted in the first in
Genuine economy and frugality can be Sc
cured only by the repeal Of the statutes
authorizing or requiring unnecessary eX-
penditures, and the refusal TO enact new
laws creating charges against the treasury
for purposes Of doubtful utility, and, al
though such policy will probably be Wig
oroqIsy 0RP9Se4 ny 0on tue o
the government for support and by local
influences seeking legislative favors, ii IS
evident that IL must be adopted and adj
hered to If any substantial result is to be
accomplished.
Receipts and Expenditures.
Reviewing the receipts and expendi-
lures for the fiscal year 1898, the secre-
tary says:
The governments revenues from all
sources for the year were 1851, Tl6,56l.94, OF
which 500, 355, 0l6.73 was from customs and
sl6l,o $3.50 from internal revenue. The
total expenditures were S459374. 6S7.65. leav-
ing a surplus of s2,3a, 675.29. AS compared
with 1882, this shows an increase in re-
of S3S, 454, 623.9l On the basis OF existing
laws, the revenues of the government for
the present fiscal year are estimated at
$500 ,365.38 and the total expenditures al
$45S, 121' 565.SS, deficit of COO The
principal items in these estimated revenues
are: From customs SIZE. 900 600 and from
the internal revenue $50. 000, 900. while Sl52,-
100000 for pensions constitutes the largest
item in the estimated expenditures. On the
basis of existing laws. the revenues of the
government for the present fiscal year are
estimated at $430. 12l $3.50 and the total ex-
SSS,000,000 in round numbers.
Discussing our foreign commerce the
secretary says:
our total imports were for 1892: Mer-
chandise, SS27, 402 462; gold $500 454; silver,
For 1S93-Imports; Merchandise. SS56. 400 s22:
gold, 81, l74,Sa; silver. SO, 193 252. Exports:
Merchandise, AI,66O'lS; gold. SlOSbSO, S44;
The prominent facts disclosed by these
figures are that the values of imports of
merchandise attained the highest point In
the commercial history of the country. and
that the exports of gold reached a higher
figure than ever before I'm a single year
since the foundation of the government.
I'm time of peace and apparently in de-
fiance of commercial laws, will make the