The record-union., 1894-08-23
THE INCOME TAX BILL.
Story that the Appropriations
Committee Made a Blunder
VIGOROUSLY DENIED BY CHAIRMAN
SAYRES

prospect OF continuing 30 Until the
New Tariff Bill Goes Into Effect
Charges Against Government Of
fetal for Violating the Civil Service
Laws.
Special to the REcoRD-UNIoN.
WASHINGTON, Aug. 22.-Representa-
tive Sayres, Chairman of the House APP
preparations Committee, brands as false
the story printed to-day of startling
discovery that the appropriations Com
mittee had negligently or by design failed
to allow the sum necessary to collect the
income tax. Every allowance for the
collection of the tax has been made in ac-
cordance with the wishes of the Treasury
Department" said Sayres. The COM
missioner of Internal Revenue conferred
with me on the subject. and | asked him
to talk with Secretary Carlisle and sub
nit a resolution covering just what he
wanted. This was sent to me Saturday.
II called for an additional $4,000 tor cleri-
cal help in the Internal Revenue Depart
partment. l introduced the resolution
Monday and it was passed. 1t is just as
the Treasury Department wanted it."
1t appears that some time ago Commits
sioner Miller wrote Mr.. Sayres, suggest
ing an increase in the appropriation II the
income tax was adopted. But this was
before the measure passed. AS soon as 1t
passed MIR. Sayres sent for MIR. Miller,
and as result of this meeting the Com
missioner prepared resolution for S9,-
0OO, and had il indorsed by Secretary
Carlisle.
The fact is pointed out that the Internal
Revenue Bureau has very large general
appropriation available, SO that the scare
about lack of funds is unwarranted. The
income tax does not go into effect until
January l, lSJ5-one month after the next
session of Congress opens. 1t is believed
the appropriation OF $1,000 will be ample
for the Treasury Departments use, bat if
there proves to be a small deficiency they
say it can be provided for at the next ses-
sion.
Internal Revenue Commissioner Miller
said that inasmuch as the tax, if it should
become law, would not go into effect
until January next, and no reports are
required to be made until March lst fol-
lowing, failure to make the appropria-
tions will not cause much Inconvenience,
as the bulk of the force required for its
execution would not be needed until
after the beginning OF the next year. In
the meantime the Commissioner, with
his present force, will prepare the in-
structions and be ready TO take up the
work at the beginning Of the year. Mr..
Miller intimateS that when the law shall
go into effect the annual expense to the
Government on this account will be $504,-
059, of which amount $4,000 will be ex-
pended in the employment of additional
internal revenue agents and Deputy Col
lectors, and the other remaining amount
will be required to pay for the services OF
the increased Office force which the tax
will make necessary, and $4,000 for
printing.
LARGE REVENUE RECEIPTS.
Receipts from internal revenue con-
tinue to be abnormaliy large. with the
prospect of continuing so until the new
tariff bill goes into effect. During the
last seven working days from August 10Th
the receipts have reached the unprece-
dented sum of Sll.000,l22, and it is conf
IDENTITY expected that by next Saturday
night at midnight, when the new Act
will become operative, the aggregate re-
ceipts for the preceding ten days will
have reached Sl5, 100000. These large re-
ceipts under the circumstances, are depre-
Gated by the treasury officials, who liken
the situation TO that of the poor man pay
Ing lU per cent. D6T ulOUtu Oh IllOH0y Oh
which TO live. The reason for this is that
the aid coming to the treasury this way
is only temporary at best, and Will add
to the deficit later on, for on overy gallon
Of whisky now being withdrawn the
Government, sooner or later, is bound to
lose twenty cents.
As soon as the tariff bill goes into
operation the receipts from this source
are expected to drop down to a merely
nominal amount, and so continue some
months until the new supply now being
LAID in is exhausted. These abnormal re-
ceipts haves swelled the cash balance OF
the Treasury to nearly Sl2l 100000 At
the same time the gold reserve is slowly
increasing, until it has now reached about
S54, ,000,000 This increase is due almost
entirely TO the Western demand for small
notes with which to harvest the crops.
Under the terms OF the special circular
issued by the United States Treasury in
June last small notes are exchanged only
for gold, and very substantial sums are
now being received daily from this
source. The demand for small notes has
not yet set in from the South, but the
movement OF cotton now beginning is
expected to bring in considerable sums OF
gold, SO that for the present at least the
embarrassments which have threatened
the Treasury have passed by.