The Bridgeport evening farmer. [volume] (Bridgeport, Conn.) 1866-1917, 1917-04-26
Financing Wars;
81 Methods Of Past
and Future Plans

Discussion Of our war finance bills
raised at once the familiar problem
of the proper ratio which taxes should
bear to loans in meeting war expen-
diture The problem is an old one;
its solution on different occasions Is
party OF history. In the Napo-
leonic wars England raised 40 per
cent. of her aggregate war bill by
taxation. Her taxes in the present
conflict have been generally figured
at IA per cent Of the war expendi-
turethough the ratio would be con-
siderably larger IL England's loans to
her allies were not included In the
total cost The shortness OF our
own Spanish war-it really lasted
or,Iy.i three months-makes the cal
EQUATION not a fair comparison with
others, but It'll is generally estimated
that so per cent. Of the cost Of that
war was paid for out Of taxes. In
the Civil war, the increase Of AKA
ton was at first slight; but the share
thus borne grew rapidly as the war
continued, until in the last year OF
the war 1t reached as high rs IL per
cent. of total expenditure.
other government officials at the start
was based on the opinion that the
war was to be short; that It could not
continue more than a few months,
and would be over in 1882. There
was notion that the people would
not submit to drastic taxation.
IN the bill as past in July, 1867,
there were specified rates upon lux
uries represented by spirits, ales, beer
and tobacco; licenses upon occupa-
tons; duties upon manufactures or
products, upon auction sales, car
riages, yachts, billiard tables, and
plate; upon slaughtered cattle. hogs
and sheep; upon railroads, steam
boats and ferryboats, railroad bonds,
banking institutions. and insurance
companies; upon salaries and pay OF
officers In the service of the United
States; upon advertisements, income,
and legacies; and an extended list of
stamp duties. One commentator la
belled the principle Of this measure:
wherever you find an article, pro-
duct, trade, a profession, or a source
of income, tax it"
with this went a tariff bill, though
not primarily for protection. The re-
vision Of import duties was deemed
necessary in view Of the new duties
placed by the internal revenue act
upon domestic manufactures and in
dutsries. 4 Income taxes were levied
for the first time in the country's his
tory. That first tax on incomes, au-
thorized in August, 1861. was at the
rate OF per cent. on the excess of
all incomes above $500 a year. 1t
was Increased in, 1852 and again in
1855, until incomes between $500 and
$4,000 were taxed at per cent. and
above $4,000 at 10 per cent. AS the
Immediate war necessities became less
pressing, the limit Of exemption was
advanced to 81, 900, and in 1857 to
$4,000: In 1872 the tax was abolished.
The war taxes did not begin to be
fairly productive until the third year
of the war. Even then the revenue
from taxes was only $112 1000 900. Off
the fiscal year ended June 80, 1865, 1t
was 1927, 000, 0OO 1t reached high
water mark in the $500, 00O, 600 OF
1866, the fiscal year after the war. J
1858, however. 1t had been cut down
to $376, 400, 900, and in 1875 to 1924
900, 900. For the fiscal year 1852
the ratio of loans to taxes was as $685.
to 81; In 1863, as 1851 to 81; in 1864,
as $3.50 to 81. and In 1865. as $2.95