Bisbee daily review., 1918-09-08
WAR TAX ARTICLE
No. !
CBv Review Leased Wirej

| Anerlcan peOple.
 It was inaugurated in 1861, at a time when money was needed to finance the Civil war, and it continued in operation until 1872. The first tax on incomes was authorized at a rate of 3 per cent on all incomes above $500 per annum. This was increased in 1862 and again in 1865, until in comes between $500 and S5000 were taxed at per cent and those above S5000 at 10 per cent.
 There were few, if any evasiOns lof the tax according to financial his torians, and in 1865, despite the fact that the entire country was in an abnormal condition because of the war, S32,O5O,000 was realized by that means. But the spirit displayed by the patriots of that day in meeting the obligations of the income tax, is but typical of the willingness which all of the people of the country show ed during that sad period. to rise to the emergency in the matter of shOul- dering the burden of extra taxation.
 A foreign minister, noting this zeal, remarked to Secretary Seward: 'I am not surprised to see your young men rushing enthusiastically to fight for their flag. I have seen that in other countries. But I have never before seen a country where the people are clamorous for taxation"
 This clamor for taxation on the part of the people was largely due to the fact that at the beginning of the war congress seemed to delay when it came to the question of properly fin ancing the struggle. A new tariff law the Morrill, bill-which had been framed during the peaceful days of 1860, was enacted March 2, 1861, and while the revenue derived from it would have been adequate had the commerce of the nation remained in a normal condition, it was entirely in adequate when the commerce be came disrupted.
 Loans were to be largely depended upon to furnish the war revenue, it being thought by the legislature that the system which had worked so well during the second war with England and the Mexican war, would be equal ly successful during the time of the Civil war. As a result the ratio of loans to taxes during 1S61-62 was SS.25 to S1; in 1S62-63 as S5.5I to S1; in 1S63-64 as S3.3S to S1, and in 1S64-65 as S295 to S1
 Secretary Chase of the treasury rather thought no extraordinary taxa tion was needed beyond that neces sary to meet the interest on the new loans authorized and to reduce small part of the debt annually. His tax recommendation of December, 1861 was intended to yield only a small fraction of the amount expected from the loans, but he did ask for internal revenue duties, and in January, 1862 congress adopted a more determined policy and announced it's intention to enact a revenue measure which would yield S150,O00,000 annually.
 The principle of this measure was to levy moderate duties upon a large number of commodities rather than heavy duties upon a few. It included rates upon luXuries represented by spirits, ales, beer and tobacco; licens es upon occupation, duties upon manu factures or products, auction sales carriages, yachts, billiard tables and plate; upon slaughtered cattle, hogs and sheep; upon railroads, steamboats and ferry boats, railroad bonds, bank ing institutions and insurance com panies, upon salaries and pay of of ficers in the service of the United States; upon advertisements, income and legacies and an extended list ol stamp duties.
 From this it may be seen that this system was very similar in nature tC the war time system now in vogue and that the new measure of the pres ent day may be said to have been modelled upon the Civil war emerg ency bill.
 Owing to the unsettled condition of business the returns from this wide reaching revenue bill were disappoint ing and for the fiscal year of 1S62-6S but $37 ,640,000 was realized instead oi the $15,000,000 that had been antici pated. It was therefore, found neces sary to make change in the policy oi the bill and this was done in 1864 when the rate radically increased, be ing doubled and even trebled in many cases. Distilled spirits and tobacco were hit hardest by the bill for the rate on the former, which had beer twenty to sixty cents a gallon, was in creased to S1.50 and S2 a gallon, while cigars, which had been assessed at g maximum rate of $3.5O a thousand were now taxed at $40 a thousand. Industry and commerce speedily ad justed themselves to the new condi tions and during the fiscal year oi lS63-64 the internal tax system yield ed a revenue of S109, ,741, 900 and in the following year the return was S209, 464, 4,00O
 It may seem from this that the revenue needed for the Civil war was of very modest proportion, and it was modest when compared with the bil lions required to finance the present world conflict. But it must be re membered that aside from the rev enue derived from taxation vast sums were realized through a series oi