Year: 1864




The San Francisco argus has the follow
ing sensible remarks relative to the law i'm
posing tax upon the products of the mines:


The telegraph informed us a day or two
since that the House had adopted an amend
ment to the tax bill, one clause of which i'm
poses tax of five per cent. upon the pro-
duct of all gold and silver mines One of
our California Representatives, Mr.. Highly,
of Calaveras, made an Intellectual effort to
have its operation limited to those mining
claims the yield Of which exceeds 5000.


The Internal Revenue Income Tax ex-
cepts in favor of all incomes which do not
exceed that amount It is not easy to con
ceive Of any argument in favor of such ex-
ception, which could not be urged with at
least equal force in favor of the Limitation
advanced by Mr.. Highly.


The Government must be sustained at all
costs; and we must content to abide by the
decision of the deliberate body which has
the affairs Of the nation in charge Yet we
cannot but think that tax of five per cent.
upon the gross product of some mining in
terests would effectually put stop to the
working Of them, and make it absolutely
necessary for the owners of them to turn
their attention to other business There is
no question that as regards what are called
"hydraulic claims" or "hill diggings," in a
large proportion of cases, more than one
half Of the gross gold product is paid out for
water. When to this are added the other
expenses Of working the claim, the proper
ton of the gross product which is not profit
is plainly large. The writer knows Of one
case-and he has been told that it is a sam
pie one-where the average amount of gold
taken out during the last three years is So,
900. Of this $4,000 has been paid for wa
ter and for other expenses, say $500-leay-
ing an annual profit Of no more than $500.
Now suppose this claim to be owned by only
one man. The $500 would scarcely do more
than support him. But suppose the whole
S3,0O0-the gross product-to be taxed at
the rate Of five per cent.-thereby further
reducing his balance S15O-Ieaving him but
S350-how can he live? VIII he not be
obliged to adopt some other means of gain
ing livelihood


What, then, must be the effect Of such a
tax upon the gold yield of California? and
what bearing has the gold yield of California
upon the financial affairs of the nation? We
trust, however, that our fears will not be re-
allied; that the gold yield will not be re-
duced; and that the mining regions will not
be depopulated before the singular obliquity
of vision in regard to mining affairs which
seems to have affected the assembled intel
lectual lights of the nation is cured, and bet
ter counsels prevail.


Let mining property, like every other
species of property, be taxed, if necessary,
for the common good; but let the imposition
of the tax be made in accordance with com
mon sense Five minutes explanation be-
fore that honorable body, by man versed
in mining affairs, would convince every
member of it that the error they are com
mitting is the one of taxing the gross instead
of, as it should be, the net proceeds Of the
mines"


We demur to the suggestion that five
minutes explanation by member versed in
mining affairs would convince every member,
etc. Palmer propositions than that have
been wrangled over during the present ses-
sion of Congress, for weeks together and
some of the members were either so obtuse
in understanding or stubbornly inclined
that explanations we're entirely thrown
away upon them.