The Washington herald., 1913-04-02
MARKETS---FINANCE- CONNER CE

disposition on the part of the inside
broker to accumulate, although he
watches conditions closely.
Washington Gas remains about the
same. one sale at S4%. There was a good
demand at this price, but none offered
under S4k
Bonds sold quite freely. Gas 5s at 1857
Traction 5s moved up to 1o9&al0sH. Rail-
way As were firm at S3k. Chesapeake
and Potomac as, 104 3-S There was a
large attendance Of brokers. Many or
ders were untitled because prices did not
match. but stock and bonds were offered
at slightly better than current figures,
and with confidence evidenced i'm Wall
Street there should be more of the mil
lion disbursed in this city Monday re-
invested in securities.
The Income Tax.
The National City Bank circular for
April is devoted to a consideration of the
sixteenth amendment to the Constitu-
ton of the United States.
Much space is given to the manner of
enforcing income tax payment I'm Eng
land. the gathering at the source, cor
porations deducting from payments and
paying for shareholders, renters for land
lords; employers from the salaries of
their employees and the government de-
Quoting from the salaries of officials.
And yet the English system seeks
avoidance of inquisitorial features.
Such a procedure as this If introduced
in the United States is likely to bring
unpopularity to the party responsible
therefor Ii would certainly result in
wonderful redistribution of holdings
and the keeping of many bank accounts
and of many small investments.
The United States has little experience
with the income tax save as a war
measure in 1861. A tax of per cent
was laid on all incomes over $500.
In July, 1862, the exemption was lower
ed to $500 and the rate. fixed at per
cent between $500 and $1,000 and per
cent on all incomes over $1,000. In 1864
a joint resolution of Congress laid a spe-
cial tax of per cent additional for
that year only. This war tax was sus-
tanned by the Supreme Court not as
direct tax but as an excise tax. The
entire provision was repealed in 1872. Ii
had raised, during its continuance, $780,
10, 209
The Amendment.
BY proclamation of the Secretary of
State. late in February. the sixteenth
intents and purposes as a part of the
The amendment Is in this
language:
Article XVI-The Congress shall have
power to lay and collect taxes on in
comes, from whatever source derived,
without apportionment among the several
States, and without regard to any census
or enumeration"
This amendment was submitted to the
Legislatures of the different States by
joint resolution of Congress passed at
the special tariff session in the summer
Of 1909. Its adoption by Congress grew
out OF the efforts of certain Senators to
incorporate an income tax provision in
the tariff bill. After some preliminary
and considerable debate, a
was reached, through the in
OF the President. by which the
existing excise tax on the profits OF
was made part of the tarifr
bill and this amendment was submitted
to the people.
In the debate on the amendment reso-
luton stress was IaId by some or It's
supporters upon the proposition that the
adoption OF the amendment ola not
mean the immediate exercise
by Congress OF the power II conrers
upon that body. They contended. how
should rest unquestioned with Congress
as an emergency provision. and they
cited as an argument, the contingency of
a great war which would strain the finan-
cial energies of the government and
render imperative the need for such re-
lief they proposed.
There is no reason to doubt the sin
certify OF these arguments Nor Is there
reason TO doubt that now the power has
been conferred on Congress to lay a tax
on incomes II Will proceed srraIgntway
to do so. and the emergency argument
which secured the power Will be ignored,
if not forgotten. Inc contingency wnicn
now preSageS the enactment or an IN
come tax is not the dread emergency or
war. 1t is merely the elimination OF the
long continued unrest IN the country
which mas rounu one outlet Tor It's as
IN complaint ABOUT the nigh
cost of living. The belief that high rates
of duty have an effective snare IN IN
the cost OF living has resulted
in widespread determination TO reduce
tariff rates, and the new administration
comes into office pledged to bring about
a radical revision downward OF the whole
ariff.