The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-04-25

The war revenue measure introduced in
the House by the chairman of the ways and
means committee is mainly on lines already
foreshadowed. The war creates necessity
for a large increase of revenue, and this
can only be obtained by taxation. Our ex-
perience in the civil war is found useful
in this emergency, and it is not surprising
that the new measure should embody many
features of the internal revenue law of 1851.
1t is wholly an excise or internal revenue
measure, with the exception of tax of 8
cents ton on all vessels sailing for foreign
ports. For the rest, it doubles the tax on
beer and ale, increases the tax on tobacco
and all manufactures thereof, and imposes
a stamp tax on bank checks, bills of ex-
change, drafts, promissory notes, bills of
lading, warehouse receipts, express. pack
ages, certificates of deposit, bonds, deeds,
leases, mortgages, bills of sale, life and fire
insurance policies, telegraph messages,
patent medicines, mineral waters, ginger
ale, bottled wines of American manufac-
ture, and number of other things. All of
these taxes were collected during the civil
war period, but they will be new to the
present generation. They will be paid by
affixing stamps to the articles taxed, the
stamps being purchased from the govern
ment as postage stamps now are. 1t will be
penal offense to sell or use any of the
taxed articles without aff1xing the stamp,
and it will be the duty of the revenue and
law officers of the government to see that
the law is enforced. This may involve
reorganization of the internal revenue de-
partment, or at least an increase in the
number of revenue officers. 1t is estimated
that the new bill will raise from $4,000, 900
to $1OO0OO,0OO a year, of which the increased
tax on beer will yield $S5,OOO,OO0 and the
various stamp taxes $50. Co., 900. The revenue
from the increased tax on beer can be call
culated with approximate accuracy. but
that from stamp taxes is largely guesswork
though Mr.. Dingley is a good guesser. The
proposed stamp tax system is not as COM
prehensive as that in force during the civil
war, but the population and business of the
country have doubled, SO that the revenue
from given source will be much larger
The revenue from stamp taxes during the
civil war ranged from a few million dollars
during the early years to 10000 900 in 1867
During the eighteen months from Sept. l.
1867, to Feb. %, 1862 the receipts from this
source were $22,9 342, and during the eight
cen months from March 1, 1869, to Aug
81, 1870. they were $25, 296, 1896. Mr. Dingley's
estimate of revenue from the present bill
may be realized, but it is doubtful. During
the civil war the government derived large
revenue from an income tax, the constitu-
tionality and propriety of which were not
questioned at that time, nor ever until re-
Gently. Under the most favorable circum-
stances it will be some time before the gov
eminent can realize much increase of reve-
hue under the new law, and it will be neces-
Sary to provide for its immediate neces-
sites in some other way. To this end the
bill authorizes the secretary of the treas
ury to borrow not to exceed 500, 600 900 on
3 per cent. certificates payable in one year,
and also, if necessary, to borrow $500 900 900
on per cent. bonds, payable in ten to
twenty years, and to be placed as a popu-
lar loan. Probably the bond issue wo1ld not
be resorted to if the $780, OOO, 900 yearly certi-
ficate plan would meet the requirements
of the government The measure in its
various aspects is a very important one,
and the situation is such that Congress
ought to act upon it promptly If it is to
be discussed and amended this should be
done without unnecessary delay, SO that the
government may know as soon as possible
where it stands in the matter of prospec-
tive