St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-09-19
A VETERAN in COUNCIL.

LII is now tnlrty years since Lincoln,
pressed as sorely by the demands on
the treasury as by the rebel armies at
the front, sent for David A. Wells to
come and devise system of internal
taxes by which the revenues might be
Increased and the troops and contractors
paid. How we'll he did that work the
present internal revenue system, but
little changed as it came from his hand,
well attests.
Now again an administration pledged
to reduction OF taxation aud obliged
by the improvidence or unwisdom OF
its predecessor to increase taxes, invites
the counsel OF the same man whom
Lincoln called to his aid, and the vet
eran, a Republican then, a Democrat
now. but wise patriot always, responds
to the call. Secretary Carlisle asked for
Mr. Wells 'cpinion as to the eXpediency,
from a strictly revenue point of view,
OF maintaining or changing the present
internal revenue on distilled spirits,
malt liquors and tobaccos."
The reply cannot be more than briefly
summarized. Mr.. Wells would put the
taxes at the revenue point; that is. that
point which would yield the largest rev.
enue without inviting evasion or fraud.
As to distilled spirits he is of the opin-
ion that the experience of the country
shows this point is reached in the pres
ent tax. There are difficulties in the
way of an increase which were brought
forth in the discussion of the question
last year and more strongly in the antic-
ipation of an increase by the distlIlers,
who forthwith largely increased their
output so that when the new tax took
effect they could transfer to their own
pocket the difference between the old
and new tax on that output.
He finds the tax on fermented malt
liquors far below the safety line. The
tax on beer can be doubled without in
jury, and Increase the revenue from
S32, 1000, 00G to S64. 900, 900 annually The
tax now is little less than one-fitth of
a cent glass, and its doubling
would make the tax too insig-
nificant to warrant an attempt to
make the consumers pay it. 1t would
probably fall wholly on the brewers, and
the well-knOwn prOtitableness of their
business, inviting immense Investments
OF foreign capital, can and should bear
1t. Even If it fell Oh the consumer, it is
still one of the best possible forms of
tax as it is purely voluntary one which
man need not pay unless he will. Mr..
Atkinson, in the article commented on
by US at the time, also advocates this
increase.
The tax on tobacco may well be re-
stored, as being also a voluntary tax,
and also because the reductions made
have been divided between the manu-
facturer and his worknuen, whose unions
were strong enough to grasp share,
and has benefited the consumer little or
none. Tobacco may indeed be, as it
often is, necessity, but ii is a need
bred OF habit not of nature, an indul-
gence not material Sustenance, and
therefore proper subject for taxation.
Restoring this tax to that of 1882 will
yield an increase of from S13, 000, 900 to
Sl6,000,000. The infamous tax OH Su-
matra wrappers should be reduced to
the level of the internal tax.
The duties, MIR. Wells advises, should
be reduced to nearly the plane of the
interna! tax. The tax on imported
spirits is 81 a gallon on domestic, 80
cents. On malt liquors It is 90 cents a
gallon; on domestic, $ % cents: on to.
bacco, from 50 to 30 cents pound; on
domestic, e cents. With these changes
Mr.. Wells believes that, on the basis of
present consumption, the revenues will
be increased from 1851, 600, 900 year TO
S245, 0O0,0 thus meeting the appre-
hended deficit and leaving open the
door to the contemplated reduction of
customs duties.