Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1900-11-22
REDUCTION OF WAR TAXES.


brought before Congress at the coming |
session, and it Is said that President
Mckinley will recommend a reduction
equal to about fifteen millions per
annum. The country Is again in the
singular position which was occupied |
during Mr.. Cleveland's first term-the |
of AN embarrassing surplus. |
Toward the close OF that administration |
the revenues exceeded the expenditures |
by one hundred and twenty millions
and the method Of disposing OF the |
surplus was the great question of the
day. 4 Government bonds were bought
in the market until the price was forced
up to Us for the 4 per cents. This was
an uuheard of premium, but there was
no reason to suppose that this would be
the maximum il the purchases were
continued.
The government was really at the
mercy OF the bondholders. 1t must pay
whatever price they chose to ask. SO
the purchases were discontinued and
the policy adopted of depositing the
surplus in the national banks, in order
to avoid contraction Of the currency
through the Treasury accommodations.
In August, 1858, the idle money in the
Treasury was equal in amount to one.
fourth OF the volume OF money IN cir.
oulation throughout the country. Secre-
tary Fairchid deposited his surplus
receipts in the banks to tho amount of
more than S6l, 900, 600, and as a politi-
cal campaign was then raging, the CRY
of pet banks' was started b, Mr..
Blaine, and echoed by the Republican
orators and newspapers. 1t was charged
that the Secretary was favoring partiou-
lar banks by the deposit OF tho public
money, and it was insinuated that tho
Democratic campaign fund was swelIed
by that means. This was one of the
incidents growing out of an unmanage.
able surplus of public money.
The surplus now is again growing
unmanageable. II arises from the War
Revenue act of 1895 This measure in
creased the tax on hecr from ono dollar
per barrel t. two dollars. 1t established
license taxes on bankers AMI brokers,
theatres, circuses, museums and concert
halls, exhibitions, bowling alleys, bill
lard and pool rooms. 1t Increased the
taxes on tobacco, stuff, and ogars, and
on the dealers in the same. 1t imposed
stamp taxes on q great variety of legal
| instruments and on bank checks, bills
Of exchange, kilograms express or
| freight receipts, bills of lading, ware
| house receipts, stock transfers bonds,
| deUentures, and certificates OF indebted
ness, and on sales Of produce or mer.
chandse, or agreements for sae ut any
| public exchange or board of trade;
also on proprietary medicines, per.
fumery, and cosmetics. 1t also imposed
tax on legacies.
The financial results Of this measure
were even greater than had been autici-
| pated. The internal revenue rose from
Sl73, SG6. 80 to 1918, Asa, 573, AN increase
| Of nearly one hundred millions in q
single year. Even this did not repre-
sent the entire gain. The increase in
the first four months OF the fiscal year
1900 was $40, 000, 600 over the CORE.
spending period OF 1899. The returns
| for the entire year have not yet been
published,
1t Is much to be- hoped that the war
in tho Philippines will not last another
| year. In one way or another 1t should
be brought to an end, and the large ex-
pense involved in 1t should he cut off
or cut down. 1t is to be hoped also that
Congress will put Its foot on the greater
part OF the senseless and dangeros esti-
mates for increase of the navy. How
ever that may be. the question of re-
ducing tho war taxes will soon be under
debate. 1t is not likely that the present
Congress will touch the tariff. That
question will come up in due time, but
il will be taken up by Congress
elected on that issue, but not by the
present one or the one which was chosen
on the 9th of this month.
The question new is what articles In
the internal revenue liat shall be re.
liered of tax. This question is not sc
easy to answer as it looks. The truth
is that nearly all the taxes imposed fall
upon the classes we'll able to pay. The
stamp tax on bank checks ia an annoy.
ing one, of course, but AS il Is one
which falls only on those who are rich
enough to have bank accounts, 1t seems
to be of the kind which ought TO bt
retained. The stamp duties on othel
instruments, beng a tax on sales
might we'll be repealed, since they arr
an impeachment to business, causing
more trouble to individuals than benefi
tn the government. The tax on beel
ought TO be retained, but probably viii
be reduced in some measure, since th,
brewers have an organization, backed
by the saloon influence, which ha
strong political power. The tax oil
proprietary medicines, perfumery ant
: cosmetics could be easily spared. Tn
, legacy and succession tax ought to b
! abandoned to the States. The who'll
amount derived from it is but littl
more THAI 81 ,000,0 600. 1t is difficult t,
, 10y down any general principle in refer
/ enoe to the war revenue act II is
! matter of detail altogether, upon whicl
very good authorities will be sure t
differ. Yet it is imperative that tn
revenue be reduced unless we are +
: fall again into the smbarrassments O
1888.