New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-03-27
4 DEFICIENT REYFNCF.

The decision OF the supreme court regarding
The income tax is expected by Treasury ofhcials
TO sustain the law. They are responsible for the
statement that 1t must sustain the law or the
Government will be left without adequate reve-
mo The truth IS that the Government Is left
without revenue in any case As this is a point
which many fail TO understand. the income TAX
ia often regarded as n sort of temporary neces
sty. II has no such excuse The revenue was
deliberately cut down on purpose to make THIS
tax oppear necessary, but in the process OF cut
ting down Democratic ignorance OF financial
,ous caused men 10 overlook the fact that clos
inc Of factories and reduction of wages neces-
sorilv involved decrease in purchases by the
noonle and hence decrease in taxes based on
consumption.
Inst now we are In a transition state. Amer
cop manufacturers are striving desperately 10
compete with foreigners so that double supplies
OF many kinds Of goods are coming INTO uhe
market Foreign imports OF some goods are
heavy. and yet the domestic mills are making
n supply Of similar goods, and until inc puoic
decides which II will prefer it Is not possible to
state how large the foreign imports may DE III
the end. nor how large the consumption or DO
nestle goods may be. or one KIND or the o'her
large quantities will be left on hand, and some
holy will lose II the foreigner. imports VIII
fall of II the home manufacturer, domestic
production will decrease.
January customs duties. swelled by wltndra"-
ais from warehouse, were $j.0OO,OOO larger tnan
last wear but 100000 less than In 1873
February duties were S3,0OO,0O0 larger than last
voor but S36OOOO0 less than in 1893. Customs
rareints for March will rise 10 about S3,6oO'ooo
larger than last year, but s46OO0o0 less IMAM
IN 1902 All Congressional and Treasury COM
norisons regarding the sufficiency or revenue
wore based upon a consumption and Importation
cana, 70 those Of 1893, and the decrease or near
~ $40 100000 in the first quarter OF the year
,o,nJv indicates that the purchases OF the PEG
,lo FOR consumption are far below those upon
b;c, Treasury calculations were based. Ihis
ought n be instantly recognized as the lnevl-
,olIa consequence Of 4 material reduction In the
,,nlovucnt and wages Of labor But Demo-
cro,ic ignorance imagnes that somehow the
,or,ors in an American woollen mill can buy
nc much as usual although their producer re-
mains upsold and people take foreign goods in
stead.
The official returns Of expenditures are often
doc,ored by delaying payments in order to
make more comfortable showing But the
=
nostal service. were just S300o0000 per month
and have been slightly exceeded thus far, whle
rho deficiency bill passed by the last Congress
involved some further expenditures before July
, nrobably as much rs Sj,OJ00O0 per month.
The deficiency for the current month is over
s3.OOoOoO thus far and unless imports increase
oven more largely. will be greater in remaining
months Of the year. Increase in imports Is pos
slbl. but thar means in the end decrease in
American production Decrease in imports
means larger deficiency in revenue. and yet the
deficiency is now more than twice the amount
Of receipts estimated by the Bureau Of Statistics
from tho income tax.
Increase in imports. because IL Is mainly in
the products which Americans have been pro
lu,,nc for themselves means further impover-
isbmen, ~ the people. further soppage Of
works AMI mills further loss Of employment and
w res ard greater decrease in the ability OF the
people 20 buy goods. whether domestic or for
e,cu. II Is right here that Democratic theories
break down. the swelling imports cannot BE-
maintained. EXCEPT by overiradng aud running
into debt. which must bring reaction. II we
were n; the high tide Of confidence and indus
trial expansion. the reaction might be delayed
mr. wears Pit We are not Therefore increas-
ipc IMPORTS must all the more speedily bring
industrial depression. shrinkage Of imports and
shriukacp of revenue Bur az IL stands the
ravenre is too small. even II the SIJ.V0.GD0
estimated bv the bureau he added for the in
eor,r tax With or without the tar, the Law 10
failure. and II Government rnst raisA Enon0