Evening star., 1924-02-25
CAN YOUR TAXES BE CUT?.
A Series of Articles the Cost of Government;
Where the Monev Goes. and Why.
BY JOHN r. SINCLAIR,
Author of Can Europe Hold Togetfer?-

! reaching effect with Thomas Jeffer.
Fon 1t was this: jefferson agreed
70 get the two representatives from
rs rs, state OF Virginia to vote for the
tH,, Hsn, ,Itnn Payment Of state bonds. And
| influence to get the permanent cap.
| ltai of the nation built on the Pc.
tomac river.
This is the first big piece of log
ro,iing rnt rai, IN american history, 1t was
The ,Hamiltor program of n.v,,.
an obfgations-both, state and ma.
tlohaf-was passed, and the Ca nita
or the nation is built on the po.
I9maG, Just as Jefferson wished
,tdnl',aon nan i lost no time In refundins
.tso- to June. 1892. he negotiated
Six International loans in HoIIanS
amounting to I9.500.000 forms at ar
average Of about AZ per cent an.
nuai interest Within the new coun
OF United States bonSs.
In the meantime Hamilton esti.
mated the internal revenue duties
LOT the hrst year at $4,000. 1t was
| poor guess. Less than sloo. oOt
was was returned to the Treasury from
average was $4,000 II was alber,
Gallatin. the fourth Secretary Of the
Treasury, who said In one Of his re.
ports that 1t cost 81 per cent of the
revenue to collect 1t during the early
years OF our national life. Even in
i8o0-ten years later-it cost 1941
per cent to collect the internal rev.
enue. Custom duties--not internal
revenue--came to Ham'lton's. rescue
Hamilton Charted Way.
The early policy of the nation. as
championed by Alexander Hamilton
Is important for US to know. Ham
. ilton cut his way through the dense
. financial woods OF his time. He
mapped out new territory. Other
Hamilton was a conservative. He
stood so1idly for two programs OF
nat onal Developments protective
tariff and indirect taxation. That he
did his work well, no one will deny:
taxation raised nearly all the ex-
penses Of our national government
up to our entrance INTO the grHa
and indirect have been used. though
he greater amount raised since 1917
has been direct.
To return again to our early his
tory. The first ADMINISTRATION OF
years, cost the people of the United
States an average OF S5.000,000 a
year. OF this amount. approximately
81 per cent went TO pay interest on
the public debt. so per cent went for
military expenses. including soldiers
pensions arising out of war. Mill
tary expenses and interest absorbed
81 per cent of the cost of government,
even in our early history. In 1890
the per capita for national pur-
ed like a big problem in the days of
H milton. 1t was supposed to be al
most too big to solve. That was in
1880.
From Alexander Hamilton. first
Secretary of the Treasury in 1890. to
Andrew Mellon. present Secretary of
the Treasury In 1924. Is far cry.
Instead of raising Sl,20, we raised
$3.50 per capita in 1928. In 1880
the government was spending $1,000
day for all purposes. Today we are
spending $4,000 a minute.
Hour Now. Equals Month Then.
The government of the United
States is spending more money every
forty-eight hours than the govern
ment Of George Washington did dur
ing his first four years. We spent
more every four minutes in 1923 than
Washington spent on his navy in
four years. We may be young in
years. but we are no financial pikers.
AS a national government we are
blowing $4,000 a minute. Surely 1t
Is government of the people, for
the people and by the people-with
a vengeance. Can we stand the pace?
Is 1t necessary for US TO stand it? If
not, how much sIower can we go and
still retain our self-respect?
These and other questions we will
discuss in the coming days.
Copyright. 1924, In United States and Great
Britain BY North American Newspaper
Alliance. All rights reserved.)
Tomorrow, The Latest Methods
! ISAO