Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-08-15
A D Eff E N C Y
Will Result if the Popgun Bills
Are Passed.
SECRETARY CARLISLE'S LETTER
Even Free Sugar Would Create a
Deficit Of $2e, 100000.
ALCOHOL TAX COMPLICATION

The letter from Secretary Carlisle to Sen
Ator Harris. which was read by the latter
In the Senate today. is as follows:
TREASURY DEPARTMENT, OFFICE OF
THE SECRETARY.
Washington, d. c., August Is, 1894.
Senator Ishanl G. Harris.
Acting Chairman of the Finance Com
mittee
Dea- Sir-Your letter advising me that the
House of Representatives had passed and
sent to the Senate bills putting sugar, coal,
iron ore and barbed wire on the free list,
and requesting IAN official statement from
you (me) as to the effect that the passage
of these bills, or either of them, would have
upon the revenues of the government" is
received, and in response / have the honor
TO say that. according to the most careful
estimates that can be made, If no change is
made in the proposed revenue legislation
which has recently passed through Con-
ress the total receipts into the treasury
Turing the current fiscal year will be as
follows:
Estimated revenues for fiscal year end
hg June 30 1S95-From duties on imports,
Senate bill, including $43,OOO,OOO on sugar.
NI9.OOOUOO.
From internal taxes-Whisky S95, ,OOO 600;
tobacco. S,O1O.OOO; fermented liquors $685.
UOc.UOO; income. s15,OO.O0O; oleomargarine,
$l'sOO.UVO; playing cards, $1,OOOOOO; miscel-
ianeous, s2c,OOO Total internal taxes.
$lI9ODU,UpO.
From sale of public lands and other mis-
celaneous sources, S2O.OO0,OOO
Total estimated revenue. SIS.OOO.OOO.
The estimated receipts for the present
year from the proposed tax on incomes and
playing cards and the proposed additional
tax OF ~ cents per gallon on distilled spirits
are. II will be observed, much less than Is
stated In the various tabuated statements
which have heretofore been used in the dis
cussion Of these subjects. but am satisfied
the amounts here given are approximately
correct.
The proposed income tax will not be pay-
able, by the terms of the bill recently pass
ed. until on or before July /, 1898, which
is the close OF the fiscal year; and 1t is es-
tinlated by the commissioner of internal
revenue that, by reason of the large stock
on hand. the receipts from the tax on play
ing cards will not amount to more than
N,UO.OcD during this year.
The estimated Increase OF receipts on ac-
count of the additional tax on distilled
spirits during the present year has already
withdrawal of large quantities of goods
from the bonded warehouses and the pay
ment of tax thereon at 10 cents per gallon.
and this process is still going on.
The total expenditures during the current
fiscal year will be as follows:
Civil and miscellaneous. including 6e-
fciencies In postal revenues-sgD,OUO,UO0.
War, including rivers and harbors-s56,-
00OOOO
j Navy. including new vessels and arma-
ment-$33, ,OOO, 600 ..--.
IndianS-Sl0.O0,CO0.
PensionS-s1i3,5 100000.
Interest-S305 100000.
Total 600, 600
: Estimated surplus for year-S15OO0
The duly on sugar proposed In the recent
bill will, according to importations of that
article during the fiscal year 1893, yield an
annual revenue of $I3. .4IS,95S, and the duties
on the other articles mentioned in your
communication would yield, under that BILL
about H.UO.VOO; that is to say-Iron ore,
s2I0.920: coal. s43s,1l9. and barbed wire.
fencing wire and wire rods of iron or steel
when imported for the manufacture Of
barbed wire fencing. about 100000,
1t Will be seen, therefore that II sugar
alone is placed upon the free list, the ex-
penditures during the present fiscal year
Will exceed the receipts to the amount of
SIS. AS. .05S. and IL the duties are removed
from all the articles specified in your let
ter, the deficit will be SO. .47s.O6S, not in
, sinking fund or the payment Of s., 363, 900
Of Pacific railroad bonds, which will ma
ture during this fiscal year.
In view Of the existing and prospective
requirements of the public service / am of
the opinion that 1t would not be safe to
place all the articles enumerated in your
letter. OF even sugar alone. upon the free
list. without imposing taxation upon other
articles or subjects sufficient to raise an
annual revenue of about s3O.OOO.OOO.
i have the honor to be. very respectfully,
yours.
GsigneO ]. G. CARLISLE,
Secretary.
The Secretary adds the following to his
letter:
Note-The bonds Of the Pacific railroad.
guaranteed by the government to the
amount of s2.3S,,OOO, mature during the
present fiscal year. and this amount is not
included in the above estimate of expendi-
lures.
An Alcohol Tax COmplicattOn
was at the Capitol today seeing Chairman
Wilson and the tariff leaders concerning
what promises to be unfortunate COM
plication IN collecting the new revenue tax
on alcohol unless the same is rectified.
While in the Scrate an amendment was in
serted I'm the tariff bill making alcohol free
of tax when used in the arts. In medical
preparations or in other like compounds.
Roughly estimated. said Mr.. Miller,
this amendment would reduce the reve-
nues about eight or ten millions annually.
The department has always been against
such procedure. We already allow col
ieges laboratories, etc, to use their alco-
hol free of tax. But this provision to
alcohol used in the arts and in medicine
and like compounds threatens to throw
the doors wide open.
II hardly know what alcohol can be said
10 be used in the arts. The provision as to
medicine would exempt all bitters, and II
would be necessary merely TO put little
bitters or a dash of Jamaica ginger In a
barrel of whisky to let it escape I'll revenue
tax 1t is hard to say what the ramifica-
tions of such system would lead to- not
only In the wholesale handling OF alcohol,
but that of retailers and druggists.
Chairman Wilson has been commissioned
by his ways and means associates to pre-
rara the bill to- overcome the trouble. 1t
would have been rectifed in conference II
the conferees had not broken up without
results Mr.. wilson's bill VIII be gwen
special rule TO bring it to speedy passage,
and it is expected that the change Will De
accomplished, so Ear as the House Is co''-
cerned, without trouble. --..-