The West Virginian. [volume] (Fairmont, W. Va.) 1914-1974, 1918-08-20
Was Applied to the Very
First Revenue Bill
Passed.
SOME FISCAL HISTORY
Present Tax Program In
Strict Accord with
the Constitution.

WASHINGTON, Aug 20-Tne great
financial transactions which now oc
cupy the attention OF the American
public and which have been made
necessary By war, arc by NJ means IN
noyations. They are based absolutely
upon the articles OF the Constitution
OF the United States, and so perfect
Is the basis thus provided that one
might think the founders Of the re.
public had been endowed with the
Gift OF looking far into the future That
every emergency might be met with
out deviation from their original plan
Ut is well known, however, that the
constitution was in reality a docu.
nent OF compromise and that II was
drawn up in its present form only al.
ter bitter disputes on the part OF the
delegate representing various parts
Of the country. each of whom sought
TO gain some advantage for his con.
stituencyJ
Il was with difficulty that the advo.
Gates Of a more centralized government
secured for Congress the right TO
ay and collect taxes. duties, imports
and excises.' and As q safe guard 90
state rights. the opposition insisted
that a clause be inserted In which o.
was dccreed that "all bills for raising
revenue shall originate in the House
Of Representative
A schedule Of import duties was
adopted January g. 1883, providing Ton
an aGValOrem rate on about MIri'
articles, and this was assessed IN such
a way as TO give protection 20 the
young manufacturing industries whicl
we're beginning 10 spring up in ths
new country, particularly in New Ems
land.
As soon a. this measure had been
decided upon. the House Of Represon
tatives began TO consider the e5iab
lishment OF a tresury department an
again the question arose as TO whothc.
a single individual should be entru
ed with the financial rcspOn 5ibility
the nation or whether that rC pom
bility should be placed in The hand
Of committee.
Alexander Hamilton was appoint
to the pc5;. however, IN Soptemo,r
1859, and although ne was only tl."e
i've years old he was probably bette
fitted than an other man in TIE UIt
ed States for the position. WIFI" CON.
fdential secretary 10 General wash
lngtOn. during the early years %. tie
Revolution. he had devoted much t.mc
10 the subjects of finance and iraI.
In 1871 he communicated 10 Robert
Morris an elaborate pan for a bank.
md in 1852 he was receiver Of Cont
rental taxes In New York To these
special interests ne added m eNpe.
fence as congressional delegate, Law
TeF and pamphleteer and had been O.,
pecially insistent in demanding NJ
lional regulation for the collection Of
revenue.
From the very first Hamilton dis
)ayed great initiative and immediate
" formulated 2 plan for funding the
public delt which b. that time had
crown to immense proportions. Ham.
lton est'Gs'od that the foreign obi.
cations .; the country amounted 10
i1l,7;G,0C1 while the domestic obliPa
lions were about s97,3S3,000 in piin
,ipal and $1,000. eco in accrued inter.
Nst TO Y hich rlight be added 81 1000, 600
'or uEl.qu!daied debt.
There was violen. opposition to
Hamiltcn'S plan. but /, finally pre-.
vailed as did his demand that the
state debts he assumed by the fed.
sHal government. The funding act was
passed August 4, 1890, and by it the
President was authorized TO borrow
Si3,OO0,000, while loan 10 the full
amount OF the domestic debt was also
authorized, subscriptions to be receiv.
ed In sny C. the certificates OF in.
debtedness which the government had
previously issued during the Revolu-
tiOnaTy War and the Confederation.
It was due to Hamilton that the
6PSt national bank was established in
1871 aud that the coinage system was
put upon a solid basis. Both OF these
were regarded with suspicion by many
people, but It was not until Congress
adopted the recommendation OF Ham.
ilton and embraced them in the tariff
bill OF 1891. that the unpCpularity OF
the secretary OF the treasury assumed
its full proportions. Following the
assumption OF the state debts, the
need Of further reevnue became i'm.
peratiVe and Hamilton recommended
that a tax be placed upon distilled
spirits. This aroused intense antag.
onism, since the consumption Of spir-
lts was so common that many people
conteuded that its special taxation was
q discriminating burden upon one OF
tina necessities OF life.
So marked was the opposition on the
frontier, where II was found con-
Venient 10 reduce corn 10 the form OF
spirits IN order TO overcome the diff.
entities Of transportation, that in
Southwestern Pennsylvania an armed
band inaugurated what is known as
the Whisky Rebellion, which was not
put down until the troops had been
called into the field, The whiskey
tax was not profitable, however, and a
tax was then levied upon a wider
range Of commodities including car.
riages. certain spirits. snuff, sugar
and the incomes from auction sales.
Direct taxation was proposed In
I50l and four years later the FIRST
direct taI was imposed upon ell
1Welling houses and lands and u0on