Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1896-12-22

when voluntarily presented by the holders
and redeemed in gold; and II the maximum
amount fixed By Congress should be re-
tired and cancelled in any year by re-
demption out OF the gold reserve, the
Secretary OF Treasury should Dc ciothe1
with authority to apply TO that purpose
any surplus funds N the Treasury, ana ia
addition. II necessary, to Issue the charaS-
ter Of bonds above described 70 a sufii-
Gent amount TO comply with the provi-
sions Of the law The adoption OF such a
policy would give Immediate assurance OF
o purpose 20 return within reasonable
period 10 a safe and elastic currency sys-
TEN, aud would remove much OF the
doubt and uncertainty which have TOT
many years disturbed the public mind ana
embarrassed the business OF the people
and the operations OF the government.
No sudden or large contraction OF the
active currency could result from the ex-
ploltation Of such a plan because the re-
demptons would DO made from time 10
time with money already Withdrawn from
circulation and held in the Treasury. ex-
cept in cases where il might become ne
cessary 10 issue and sell bonds in order
10 make the redemptions correspond 10
the amount required or authorized, ana
In all such cases contraction could DE
easily prevented by selling the bonds
abroad, and thus adding their proceeds to
our domestic stock Of money"
Continuing. he says: Whatever plan
may be finally adopted for the retire
ment of United States notes and Urea
sury notes. it Will fail TO afford complete
protection 10 the government against de-
mands for gold in the future. unless 1t
includes a provision relieving the Trea-
Obi 70
bank notes. except such as are worn,
mutilated. or defaced. and the notes of
failed banks. or requires these institu-
lions to keep their per cent, redemption
fund in gold. and TO deposit gold coin for
the withdrawal OF bonds when circulation
is TO be surrendered or reduced"
Mr.. Carlisle renews MS recommendation
for such amendments TO the national
banking laws as would permit the issue
of circulating notes equal in amount 10
the face value OF the bonds deposited. and
reduce the tax on notes TO one fourth OF
1 per cent. per annum; and that au-
thority be given 70 establish branch banks
for the transaction of all kinds OF bust
ness now allowed, except the issue Of
circulating notes.
REVENUE AND PROTECTION.
Taking up the question Of revenue and
quoting figures and the yearly deficiency,
the Secretary says: But unless our an
nual receipts are increased by improved
business conditions. or our annual ex-
penditures are reduced a time will arrive
when provision must be made for addi
tional revenue; and, II the expenditures
OF the government shall be increased by
acts Of Congress, the necessity for such a
measure viii arise earlier than the pres
ent situation seems TO indicate.
I'm view Of this possible contingency,
Il will not be inappropriate 10 submit
few suggestions concerning the general
policy 10 be adopted in making provision
70 meet the future necessities Of the gov
eminent. For more than a century. our
tariff legislation has been designed, 70
a great extent, nj least, TO accomplish
objects other than the raising Of revenue
for public purposes. The protection Of
capital invested In our native industries.
and the protection Of labor employed IN
the United States, against the compet
ton OF the products OF foreign Industries
and foreign labor. have been alleged as
the paramount objects I'm many cases,
and urged as a justification for progress
sive increases Of tariff taxes and COM
mercial restrictions, when revenue was
not needed. or when the rates imposed
We're so high as To reduce the revenue.
In other instances, revenue duties have
been abolished. in order that protective
duties might be retained or increased,
and the necessities Of the government
and just principles Of taxation have been
subordineted 10 the demands Of special
interests.
TARIFF REFORM.
$50 long as the income OF this govern
ment from customs and internal taxes
exceeded its expenditures, the fact that
protective duties were destructive OF
revenue. although clearly apparent 10
all who observed the practical operation
OF the system, did not attract the at
tention Of the public generally but the
situation has been materially changed
since 1892. and hereafter IL will not be
possible TO sacrifice revenue 10 protection
without seriously embarrassing the fiscal
affairs Of the government, by depriving
It Of an income sufficient to defray its
necessary expenditures. II the usual pro-
portion Of this income is hereafter %
bs derived from taxes on imported goods
the protective theory must be abandoned
as the basis OF our legislation upon the
subject. and a weli-considered and con-
sstent revenue system must be substi-
tuted In its place; and. in my opinion, this
can be done without material injury
70 any trade or Industry now existing in
this country"
Whatever danger existed from foreign
competition, the Secretary thinks, has
been reduced TO a minimum, or wholly
eliminated, by the changed industrial and
trade conditions. This belief he celebrates
IN an exhaustive argument, fortified with
statistics, and concludes that instead OF
increasing existing rates upon articles
now dutiable. IL Will be necessary to re.
sort 20 taxation upon various kinds of I'M
pOrtations heretofore exempted, simply
because they were not included within the
scope OF the protective theory. The alter
native will 30, the Secretary thinks, the
imposition OK taxes In some other form
but IN either case. be says, there are GER.
tain fundamental rules ana principles ap-
plic3ble 10 tbs subject which cannot be
disregar1ed without injustice to the people
from whom the eXactions are 10 be made
The first and most important one is that
no tax should bo laid except for public
purposes, and that all sums paid by thu
people should be received by the govern
ment Any tax. whether import or excise
which increases the cost OF commo ltiel
10 the consumer beyond the amount col
leoted BY the government Is unjust and
indefensible upon any correct ecOnomi,
principle. Taxation should not only D,
imposed for public purposes alone, but 4
should be limited as far as possible, Il
such articles as the people can avoid TIT
use Of without impairing their ability q
earn a subsistence or increasing the cos
Of any part Of the materials on which they
work-that is. on articles of voluntary
rather than on articles OF necessary use
ana all such taxes should be so adjusted
when possible. as 70 distribute the bur
ders OF the government equally upon thl
people, according to their ability to beal
them.
II is not claimed that absolute equali-
~ In the distribution of the burdens OF
taxation can be secured in all cases. I'M
der any practical system that can be de-
vsed but gross Inequalities can certainly
l.. 1919 md thal- l,lllnh Leg LIZ