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TAX ON CRUDE PETROLEUM.
stitutional amendment proposed by the committco Constitution. I would like to know how long Mr. GARFIELD. I ask unanimous consent
no specch shall exceed thirty minutes, nor shall the the discussion is likely to be permitted to
motion to extend the time of any member be enterto report from the Committee of Ways and tained.
continue. Means, for consideration at the present time,
Mr. ROSS. That will not prevent a motion
Mr. STEVENS. I have not. I intended to a joint resolution to provide for the exemption of crude petroleum from internal tax or duty, to print.
be governed by the desire of the House very The SPEAKER. It will not.
much in regard to that, allowing a very candid und for other purposes. Mr. UPSON. I object.
Mr. RAYMOND. I beg to inquire of the
discussion. I am sure it will not be asked to
procrastinate it factiously. Mr. GARFIELD. I move to suspend the gentleman from Pennsylvania wheịher it would
Mr. FINCK. Certainly not. not suit the convenience of the committee and rules for the purpose of allowing the introduction and present consideration of the joint | tax bill shall have been disposed of. If we go the House to let that question lie over until the speak for one, it is the intention to allow the
Mr. STEVENS. On our part, I can only resolution. on with the tax bill to-day, and to-morrow with
largest and fairest debate desired by any memMr. LE BLOND. I ask that the resolution
ber of the House. be read for the information of the House.
the report on reconstruction, it will leave a gap The Clerk read the resolution. It provides in two or three days. in the discussion. We may finish the tax bill
Mr. FINCK. That is satisfactory.
The SPEAKER. Is there objection to the that paraffine oil, not exceeding in specific
Mr. STEVENS. We have to some extent
consideration of the resolution? gravity thirty-six degrees Baumé hydrometer,
Mr. BANKS. I object. considered that. We think it important this the product of a residuum of distillation, crude
Mr. STEVENS. I move to suspend tho should pass and be sent to the Senate so they petroleum, and crude oil, the product of the
may have it before them.
We then propose first and single distillation of coal, shale, as
rules for the purpose of introducing the reso
lution. the accompanying bills shall be postponed phaltum, peat, and other bituminous subto suit the convenience of the House so that
Mr. SCHENCK. Before that question is stances, shall, from and after the passage of
The the tax bill or any other may be proceeded
put I desire to make a suggestion. this joint resolution, be exempt from internal with.
gentleman from Pennsylvania [Mr. STEVENS tax or duty.
Mr. BINGHAM. I hope there will be no
intimated his purpose after having disposed of Mr. FARNSWORTH. As the House is such postponement.
the main proposition, the amendment to the about to proceed at once to the consideration
Constitution, to defer the consideration of the
Mr. NIBLACK. I desire to know whether of the internal revenue bill, I do not see why
other special orders which are to follow in their this matter should not be considered in connecan opportunity will be afforded to offer amend
turn. Now, regarding these different measures tion with that bill. ments to the proposed constitutional amend
as gentlemen on the other side say, all as part ment. The SPEAKER. The motion to suspend Mr. STEVENS. This has of course nothing
of one whole, I trust when we enter upon the the rules is not debatable except by unanimous
consideration of this business in one of its parts to do with that question. We intend to be libconsent.
we will continue until the whole matter is disMr. MORRILL. If the House will hear eral in allowing time for discussion. I only
posed of. I merely make this remark now so offer this so a larger number of gentlemen may two or three words in explanation of this meas.
as not to be considered as concluded or as be heard before it becomes necessary to close ure, I do not believe a single member of the
having been understood to agree to any propdebate. The discussion must be brought to a House will object to the consideration and
osition of that kind which is thrust upon us close within a reasonable time. We desire to adoption of this resolution at the present time. The parties manufacturing this oil are sub
be liberal. We have already discussed the Mr. STEVENS. I do not propose to do jected to a tax so heavy as to prevent absoquestion so much that I think thirty minutes
anything except what the House may desire. will be long enough. lutely the manufacture of the article with any
The motion to suspend the rules was agreed
Mr. BANKS. Mr. Speaker, I suppose this profit to the manufacturer. The manufacturers
to, two thirdy voting in favor thereof. series of measures is proposed in good faith being consequently compelled to stop their
The question recurred on agreeing to the as a means of settling the difficulties of the operations, their employés have become riot
resolution. country. The committee has taken a long ous, and are destroying large numbers of the
Mr. ASHLEY, of Ohio. I suggest to the time to consider the subject, but not too long, wells. It seems to me, Mr. Speaker, that, as
gentleman to modify the resolution so as to but there ought to be some opportunity given we propose to relieve this tax on the 1st of
provide that at the evening session speeches to discuss it. I do not think any time expended July, we might as well do it now, so as to allow
may be made of an hour's duration. in the discussion of these measures, either for these manufacturers to resume their business.
Several MEMBERS. Oh, no. Mr. UPSON. I withdraw my objection.
or against them, is time lost to the country. Mr. STEVENS. I desire that the evening Mr. ROSS. I renew the objection. It will be discussed and understood by the
session shall be for action. I call the previous Mr. GARFIELD. I move to suspend the people, and it is much better for the commit
tee as well as for the House, that the discus- The SPEAKER. The House has prescribed The House was divided; and there weresion here-should be full and thorough. I hope
a“ morning hour" in the morning and evening, the gentleman will not press for a limitation of ayes 90, noes 13.
session both. discussion until the House shall have showa at So the rules were suspended, two thirds
Mr. RANDALL, of Pennsylvania. Is it least a tendency, if not a disposition, to convoting in favor thereof.
provided for yet in the evening? The joint resolution was then received, and sume time improperly.
The SPEAKER. It is not provided for yet, read a first and second time.
Mr. STEVENS. The gentleman knows we but the House has ordered that whenever an Mr. GARFIELD demanded the previous
can only make this arrangement to-day. evening session shall be held the first hour
Mr. SCOFIELD. question.
How many gentlemen shall be considered the same as a
6 morning The previous question was seconded and the
have signified their intention to speak? hour." During the debate on the constitumain question ordered ; and under the opera
Mr. STEVENS. Oh, there is a list as long tional amendment that will be the first business tion thereof the joint resolution was ordered as my arm. [Laughter.]
in the morning after the reading of the Journal, to be engrossed and read a third time; and
Mr. ELDRIDGE. Do we understand the so that there will practically be no morning
hour. being engrossed, it was accordingly read the proposition to be that we are to consider the third time and passed.
three measures that are proposed as one sub- Mr. LE BLOND. I suggest to the gentleMr. GARFIELD moved to reconsider the ject? It is thought by gentlemen on this side man from Pennsylvania whether he had not vote by which the joint resolution was passed;
that these three measures are in fact one, and better amend his resolution so as to embrace and also moved that the motion to reconsider
that the discussion ought to be had upon them the other two propositions coming from the be laid upon the table.
all together. I think we may as well discuss committee, so as to limit debate on each ono The latter motion was agreed to.
the constitutional amendment and the other to half an hour.
two measures at the same time rather than Mr. STEVENS. I do not know that I unRECONSTRUCTION.
discuss them separately. They were reported derstand the suggestion-whether the gentleMr. STEVENS. Mr. Speaker, as to-mor- as a series of measures upon the same sub- man desires that the thirty minutes shall apply row has been fixed for taking up the report of ject.
to them all; but at present I do not wish to the joint committee on reconstruction, I wish Mr. STEVENS. I will say to the gentle compel members to discuss three questions in to suggest, inasmuch as it has been largely man that as different days are fixed for the the thirty minutes. discussed, and there are still a considerable || hearing of the different measures the subject Mr. RADFORD. I would suggest the pronumber of members who wish to speak, the must properly be considered in that way. We priety of striking out the last part of the resospeeches on that subject shall be confined to cannot take them up and pass them all to- lution prohibiting the extension of time to any thirty minutes. Though on our part we have | gether. I will say, however, that if the first gentleman. the laboring oar, yet I am satisfied we shall be measure is acted upon, whether passed or de- Mr. STEVENS. I cannot do that. Wo limited to thirty minutes, so that a larger num- feated, it is expected, if the House desire it, have nullified the hour rule already, so that it ber of members may be heard. If there be no that the fairest debate shall be allowed on the amounts to nothing; and I do not want the particular objection, I shall offer the following i other measures also. But the debate which I rule nullified when it reduces the time to thirty resolution. If there is any great objection, now propose to limit to thirty minutes is only || minutes. do not intend to press it. I want the consti- on the one measure.
The previous question was seconded and the tutional amendment sent to the Senate, to see Mr. FINCK. I desire to inquire of the gen. main question ordered; and under the operawhat they will do with it.
tleman whether he has in his own mind fixed tion thereof the resolution was agreed to. The Clerk read as follows:
any time when he will call the previous ques- Mr. STEVENS moved to reconsider the vote Resoloed, That during the discussion of the oon- tion upon this proposed amendment to the 'll by which the resolution was adopted; and also
39Th Cona. 1st SESS. --No. 153.
upon the table.
DEPOSIT OF GOVERNMENT FUNDS.
moved that the motion to reconsider be laid sideration of the tax bill. If you have a copy of another dispatch from the minister of
“ morning hour" it will take an hour and a the United States in Paris to the Secretary of The latter motion was agreed to. half to get a quorum here.
State, and invite the attention of Congress to
ANDREW JOHNSON. Mr. WILSON, of Iowa, by unanimous con
report of the committee on reconstruction
WASHINGTON, May 4, 1866. sent, from the Committee on the Judiciary,
reports of other committees. The report of The message, with the accompanying docreported back with a substitute bill of the House that committee comes up immediately after the
uments, was referred to the Committee on No. 437, to declare and protect all the privileges and immunities of citizens of the United
reading of the Journal, and the discussion of Foreign Affairs, and ordered to be printed. States in the several States, and the same was
it will run on ad infinitum; and if we do not WARMING AND VENTILATING TIIE CAPITOL.
have a “morning hour' in the evening there The SPEAKER also laid before the House recommitted to the committee, and the substitute was ordered to be printed. will be no opportunity for the other committees
a communication from the Secretary of the to report for several weeks.
Interior, in compliance with the resolution of
the House of 4th instant, transmitting certain Mr. SMITH. I ask leave of absence for evening sessions, and that we shall devote the
papers, and the report of T. U. Walter, on two weeks for Mr. Noell, of Missouri, who first hour to the business of the morning hour. warming and ventilating the Halls of the two is sick.
Mr. ROSS. I would suggest to the gentle- || Houses of Congress; which were referred to the There was no objection, and the leave of man from Vermont [Mr. MorriLL] to modify Committee on Public Buildings and Grounds, absence was granted.
his motion so as to postpone the reports of the and ordered to be printed. Mr. WASHBIJRN, of Indiana. I ask in- committee on reconstruction until after the
MONEYS FOR INDIAN SERVICE. definite leave vi absence for iny colleague, Mr. tax bill shall have been considered. HIL.
Mr. MORRILL. The House can make such
The SPEAKER also laid before the House There was no objection, and the leave of order as they please in that regard to-morrow,
a communication from the Secretary of the absence was granted.
when the subject comes up for consideration. || Interior, in compliance with the resolution of
The SPEAKER. The reports of the joint | the House of the 23d ultimo, transmitting a Mr. LYNCH. I ask unanimous consent to
committee on reconstruction cannot now be statement of moneys on hand applicable to the offer the following resolution: postponed without a suspension of the rules,
Indian service; which was laid on the table, as they are not now before the House. When and ordered to be printed. Resolved, That the Committee on Banking and Currency be directed to inquire what legislation is they come up to-morrow morning the House
LEAVE OF ABSENCE. necessary to protect the Government against loss of can then take such action as they may think Mr. LATHAM asked and obtained leave of public funds deposited in national banks, and report proper. by bill or otherwise.
absence for his colleague, Mr. HUBBARD, until The motion of the gentleman from Vermont, No objection was, made.
Wednesday next. [Mr. MORRILL,] as the Chair understands it, is Mr. WASHBURNE, of Illinois. I move
ADDITIONAL ASSAY OFFICES. to amend that resolution by adding "and that
to suspend all rules in order that there may be said committee report a bill to prevent any
each day after to-day, until otherwise ordered, Mr. MORRILL reported, from the Commitdeposits by Government officers being made in an evening session for the consideration ex
tee of Ways and Means, a bill to establish clusively of the tax bill. The Chair is of opin.
additional offices for the assay of gold and national banks." Mr. LYNCH. I cannot yield for that purion that if that motion prevails it will cut off
silver, and for other purposes ; which was read the consideration of morning-hour business
a first and second time, ordered to be printed, pose. I move the previous question, during the evening session, and also postpone
and recommitted. Mr. WASHBURNE, of Illinois. I hope the the reports of the committee on reconstruction.
TAX BILL, previous question will not be seconded. Let
Mr. MORRILL. The Chair misunderstands Mr. MORRILL moved that the rules be us try this question here. The
my motion. It is not intended to postpone suspended, and that the House resolve itself previous question was not seconded. Mr. LYNCH." I withdraw the resolution.
the consideration of the reports of the com- into the Committee of the Whole on the state mittee on reconstruction, but merely to sus- of the Union on the special order.
pend the rules so that after to-day there may The motion was agreed to. Mr. MORRILL. I move to suspend the l be evening sessions for the consideration ex- So the rules were suspended; and the House rules so that from and after to-night the House | clusively of the tax bill.
accordingly resolved itself into the Committee shall hold evening sessions, commencing, at
Mr. STEVENS. Would it not be better to of the Whole on the state of the Union, (Mr. half past seven o'clock, p. m., until otherwise | allow the consideration of the reconstruction | WASHBURNE, of Illinois, in the chair,) and ordered.
reports to go on in the evening also, and thus || proceeded to the consideration of the special Mr. WASHBURNE, of Illinois. For what be able to get through them the earlier? order, being a bill of the House (No. 513) to purpose?
Mr. MORRILL. I think we better take the amend an act entitled “ An act to provide inMr. MORRILL. For the purpose of con- evenings for the tax bill.
ternal revenue to support the Government, to tinuing action on the revenue bill.
The question was taken on suspending the pay interest on the public debt, and for other Mr. RANDALL, of Pennsylvania. Exclu- rules ; and upon a division there were-ayes 68, purposes,'' approved June 30, 1864, and acts sively? noes 36.
amendatory thereof. Mr. MORRILL. Yes, exclusively.
Before the result of the vote was announced, Mr. MORRILL. Mr. Chairman, let me say Mr. WASHBURNE, of Illinois. I hope the Mr. BLAINE demanded tellers.
at the start, lest gentlemen should be too much gentleman will modify his motion so as to pro- Tellers were ordered; and Messrs. BLAINE, | frightened, that the great length of the bill vide that the evening sessions shall be for no and WASHBURNE, of Illinois, were appointed. before us mainly arises from the fact that other business excepting the consideration of The House again divided ; and the tellers || the Committee of Ways and Means thought it the tax bill. reported-ayes 68, noes 34.
advisable, wherever in the course of the revisMr. BLAINE. Would not that do away with So the rules were suspended, two thirds | ion a section of the old law was amended, even the morning hour'' in the evening? voting in the affirmative.
though but slightly, to strike out the old secThe SPEAKER. The House has already Mr. MORRILL moved that after to-day the tion and reinsert it as amended. This vastly ordered by unanimous consent that when even- | House shall hold an evening session each day, swells the size of the bill, but will be much ing sessions are held there shall be a "morning | until otherwise ordered, for the consideration more convenient for those who are to interpret hour” for the transaction of the business of exclusively of the tax bill until the same shall or administer the law hereafter. In revising committees. have been disposed of.
our internal revenue laws, the question that Mr. WASHBURNE, of Illinois. Then I The motion was agreed to.
meets us at the threshold is, how much rey. hope there will be no evening sessions.
MESSAGE FROM THE PRESIDENT.
enue have we to spare? Or how much will our Nir. SCHENCK. Is it in order to inquire
necessities require for another year? The last if any good ever came of evening sessions? A message in writing was received from the || question has been specially answered by the Mr. ROGERS. Never.
President of the United States, by Mr. Cooper, Secretary of the Treasury, who has fixed, in a Mr. MORRILL. We can do as good work his Private Secretary, who also announced that recent communication to the committee, $350on the tax bill in the evening as at any other
the President had approved and signed a joint ||000,000provided the appropriations of Contime.
resolution (H. R. No. 67) providing for the gress do not exceed the estimates-as the sum Mr. SCHENCK. I know that things can reappraisement of lands described in an act it would be safe to rely upon, including the revbe run through at evening sessions very rapidly. for the relief of William Sawyer and others, of enue from the tariff as well as internal taxes. Mr. WASHBURNE, of Illinois. "If I un- Ohio.
In making an estimate of the probable receipts derstand the ruling of the Chair, there is an FISHERY AND WATER-CULTURE EXHIBITION. from the latter, we have as a basis one full order already existing that there shall be a
The SPEAKER laid before the House the
year and three fourths of the present year of "morning hour" at the evening sessions. Cannot the House dispense with that?
following message from the President of the experience, and the data are sufficiently comUnited States:
plete to be of value. Our receipts for 1864-65 The SPEAKER. Yes, by a suspension of
were, in round numbers, $210,000,000, and the rules; but a majority of the House can
To the Senate and House of Representatives : the returns thus far of 1865–66 show that we order an evening session.
Referring to my message of the 12th of March may expect for the year an increase of nearly Mr. WASHBURNE, of Illinois. Then I || last, communicating information in regard to a || fifty per cent., or not less than from three trust that if we have evening sessions at all proposed exposition of fishery and water cul- hundred to three hundred and five millions. they will be devoted exclusively to the con: ture at Aroachen, in France, I communicate a One of the largest and best paying consumers
of the products of the country during the war feeling very confident that the rates for the coast, and the banks of the Rio Grande, the was the Government, but is so no longer. War income tax will be allowed to be changed much Mississippi, the Mobile, the Tennessee, and the prices no longer rule, and it is inevitable from the existing law.
Savannah would soon be decorated and enthat manufactures must be still further reduced Treasury receipts for fiscal year ending June 30, 1865.
livened by factories, giving employment to in values until we reach the solid standard of
thousands, and bringing the culture and congold as recognized by the commercial world. Internal revenue......................
209,461,000 tentment, the social life and comforts of organ: The tax on manufactures, therefore, must be
ized industry into regions where hitherto useful far less productive for the year ending June
Total receipts, exclusive of loans........$329,567,126
labor has worn the badge of dishonor. The 30, 1867, than heretofore, as it will be com
saving in freightage, and in the cost of food, puted at a less percentage, if our bill should Estimated Treasury receipts for fiscal year ending June
will secure at least handsome profits-possibly be adopted, and on a far less aggregate amount.
large profits—to those who may engage in the Then, as a general rule in a season of falling | Customs receipts to April 1, 1866, (actual)
business. With prosperity human nature is prices, it is not gains but losses which must be
$128.967,375 Internal revenue to April 1, 1866, (actual) 213,890,548
rarely disposed to make war. Make the South calculated at the end of the year; and thereMiscellaneous (actual) premium on gold.
prosperous, and we make them our friends. fore the tax on incomes, the dividends from &c...........
37,183,309 With freedom for all, and with such measures . banks and other corporations for the next year,
as will induce them to work, they may become
Actual aggregate receipts to April 1.. 410,041,232 cannot be expected to yield anything like the Estimated custom receipts, April 1 to
prosperous, and that through the policies of amount derived from these sources for the years June 30....
30,000,000 the national Government. Even though the ending December, 1864, and December, 1865.
Estimated internal revenue, April 1 to
60,000,000 June 30...
cotton crop the present season should be but Nor can our foreign importations be maintained Estimated miscellaneous, Aprill to June
a half of the standard crop, the price will be upon their present scale. It is very desirable
1,500,000 so great that the South will realize more money that they should not be as they are supplant
from it than in any year of our previous hising a large share of the labor of our own peo
Total aggregato receipts from all
tory, as the laws of trade for the last seventy ple, and because payment will at present be June 30, 1866.
$501,541,232 | years prove that a short crop is always more made chiefly in United States bonds. Finan
valuable than a full one, and hence the unicial disaster, as well as increased depression to Estimate of receipts for the fiscal year ending June form effort to hide the fact of a great crop. our industrial interests, cannot fail to follow
The shrinkage of cotton in the process of Customs
$125,000,000) such an influx of foreign goods as we have wit
manufacture is about fifteen per cent., and that Internal revenue.......
260,000,000 nessed the present season. That trade must Increase on cotton.
amount will be lost to the manufacturer in the in some degree be postponed until we recover
Increase on spirits.
15,000,000 | drawback, and gained to the Government. The from the exhaustion caused by the war, until
principle is not novel. We return duties upon capital and labor can adjust itself to its new
425,000,000 | imported goods when reshipped, and we gladly conditions of peace, or until we have some- Requirements of the Secretary of the
allow spirits, tobacco, and all sorts of domestic thing to exchange for British, French, and
manufactures to go out of the country without German iron, wine, and haberdashery, besides Available for reduction of taxation........ $75,000,000 the payment of any internal tax. If it were merely our national credit.
possible to ascertain with any precision the tax It is right, however, to look for some increase It will be seen that I estimate a reduction in paid on other raw materials when manufactured of revenue in consequence of the close of the the revenue received from manufactures, on for exportation, as we can on cotton, as, for war, and we may expect something from the account of a depreciation of values, of about example, upon leather or iron, we should con: States lately in rebellion, though not an amount | twenty-five per cent., and a reduction upon sider it unquestionably wise to refund the full in proportion at all to their relative numbers. incomes and dividends of rather more than that amount paid. Never fruitful in taxable resources, they have amount. It is true that we shall be likely to
Erports of the Manufactures of Cotton. less now than ever. If we obtain outside of have a more perfect administration of the law; 1853.
$8,018,652 the receipts from cotton enough to cover the and I take pleasure in saying that the present
5,141,044 bills already passed in one or the other House Commissioner is a most diligent and conscien. 1863.
954.835 for extra expenses on their account, it will tious officer; but the increase of revenue on
764,761 equal my expectations. Taking all these things this account will be at least counterbalanced The largest export trade we have ever known into consideration, as well as others not neces- by many little favors distributed all through our of the manufactures of cotton was in 1853, when sary to mention, the Committee of Ways and amendments, and which it is impossible to it was a trifle over eight million dollars; but in Means have felt willing to report the bill as it accurately estimate.
consequence of the low-priced Surat cotton and stands; which will reduce taxation the present We could not, if we would, levy an export the lower-priced labor of Europe it has steadily year in round numbers about seventy-five mil- duty upon cotton, and, except for convenience declined since that time, and during the late lion dollars.
of collection, an excise tax may be better, as, war nearly ceased, not reaching $1,000,000 It is also prudent to anticipate a large dim. in the form it is here proposed, it is not neces- in 1865. Pass the present law, however, and inution of the revenue from customs, as it sarily to be paid by the planter, and may, in we shall speedily have restored to American ought not to be expected to long continue at the same manner that we now transport spirits, manufacturers and American merchants the double the amount ever obtained in the most be removed from one collection district to any fullamount of the foreign trade we ever enjoyed, prosperous times. Our receipts from miscel- one other, upon giving bonds for the payment and in due time our country will assume that laneous resources the coming year will be very of the tax within ninety days, or upon its ar- supremacy in the cotton trade of the world to light, as they have recently accrued mainly rival at its place of destination. The duties which it is so legitimately entitled. from property disposed of at the close of the will practically thus be paid by the purchaser, The system of levying a tax upon home manwar, and premiums on sales of gold, sources In addition to this, while we guard our political || ufactures would never have been dreamed of already nearly extinct.
citadel here against the dangers of any insidi- but for the grave necessities of the hour. Our We seek to make some compensation for ous treason from any quarter, when it comes Treasury was exhausted ; our people were unthese losses by increasing the tax on raw cot- to taxation we should not only be just but gen- used to paying taxes; a large party among our ton three cents, or by raising it from two to erous, and the drawback on manufactured cot- people were not in harmony with the idea of five cents per pound. Supposing that two mil- ton, of all the taxes actually paid, in any form, || maintaining the Union at all hazards and at lion bales should be raised this season and be will redound most to the benefit of southern any cost; loans at home could only be obtained taxed--and I think the amount will be consid- and western States. They will at once manu- at first in driblets; among foreign nations, with erably greater notwithstanding the actual want facture coarse cottons and yarns and warps aristocracies everywhere dominant, it was an of good seed, and the changed system of labor much more extensively than they have hither- || irrepressible joy for the organs of public opin.
- we ought to obtain a revenue from this to done. And the southern people will be the ion to speak of our country as “the late United source of $44,000,000, or an increase over the last to surrender the system of a tax on cotton, States ;' among them all there was no Louis tax at present in force of $26,400,000. The when once it shall be adopted and understood. XVI to send us a man or to lend us a dollar, crop may so far exceed the number of bales Until the production of cotton shall be so large or (with the single exception of Russia) even mentioned as to cover all the cotton which as to reduce the price below twenty cents per to bid us God-speed in the task of putting down will escape taxation, or which will be used | pound, or exceeds the wants of the world, this a rebellion the most wicked in the annals of on plantations, and all that will be exported tax will not be greatly felt by Americans. mankind; and a war-not a little war, but a in the shape of manufactures and
which Should the tax at any time operate adversely || great war-such as our country must and will a drawback will be allowed; but it will be safer to our interests, as I do not think it can at always wage, if it wages any, of illimitable proto estimate probable receipts on a lower basis. present, it must be reduced or removed as ex- portions had already begun. Under these cir. All human calculations are subject to contin- perience shall seem to require. Surely, if the cumstances we girded up our loins and became gencies, and financial calcnlations are perhaps entire cotton crop of the United States, save self-reliant-alone but independent--and built most exposed to be shipwrecked of all; but if what we consume, could be exported in a man- up the credit of the great American Republic we retain the tax on cotton as proposed, we ufactured state, or even in a partially manu- in the hearts of our own people; made them can safely release, in my opinion, taxes to the factured state, instead of exclusively as a raw see and feel that it would be safe to trust it, extent contemplated by the bill
. Otherwise material, it would be an end worthy of states. by seeking objects of taxation which would we must reinstate something already stricken men, covering our country with blessings, and, | yield promptly and yield abundantly. The out of the roll of taxation by the bill, or find wronging no man, would do much toward ex- experiment proved a success. During the some new source of revenue which will pro- | tinguishing resentments and restoring kindly whole term of the war it was borne by our manduce an equal amount; and I say this without I feelings throughout the land. The southern ufacturers and by our whole people, not only
without complaint but absolutely without in- they do, will no longer be treated as men, sub- per, lead, zinc, and brass, which we do propose jury, for it is even doubtful whether they ever ject to taxation, but as deserving of favor. to release. The bill, however, will show for enjoyed a season of greater prosperity. The | Though they may tax us, we do not propose to itself. The reductions have been made with law was new and therefore not polished and tax them. Provisions or products of the farm the sole view of the greatest good of the
great perfected by experience or revision, but first it has been the policy from the start (and its est number; and in the main I hope they will put into operation by the distinguished gentle- wisdom has been only exceptionally questioned) | be accepted by the House. It is very likely to man from Massachusetts, [Mr. BOUTWELL,] it to keep free from taxes. All fertilizers, drain- be true that many articles not now relieved can at once vindicated the propriety of its princi- || ing tiles, and many of the more expensive im- be pointed out having equal claims with those ples a:id policy. Often amended subsequently | plements of agriculture it is now also proposed | proposed for favor; but the answer is, civilly in consequence of the increasing wants of the to relieve. Freights, perhaps the most inde- but firmly, the time for those has not yet arTreasury--bearing the misfortune of frequent || fensible tax we have had, perpetually checking rived. The release of the tax apon many artichanges, too, in its chief administrative offi- commerce and adding to the price of purchases || cles has not been done so much to favor them cers--it soon brought forth most bountiful sup- as well as diminishing the price of sales, it will or any particular branch of manufacture as to plies and disclosed a resource of unequaled || be seen are to be utterly abandoned, as are all favor those which remain still bearing the bur. magnitude that can be used in any sufliciently the articles in schedule A, except gold watches, den of taxation. urgent crisis, and which is an ample requital, silver plate, billiard tables, and carriages val- The removal, so far as it at present seemed rendered at the hour of our greatest need, for || ned above $300, as by the testimony of the prudent, of the constant duplication of taxes, all the protection, direct or indirect, ever be- collectors the tax upon all the other articles will certainly tend to diminish the cost of a stowed upon the products of domestic indus- therein embraced amounted to less than the large number of articles, but until we reach the try. Without these products of a free people | cost of collection, while it imposed domiciliary || solid basis of a eurrency equal in value to coin, we should have been as weak as our foes, and, visits, always obnoxious to a spirited people. || prices must remain dear and unstable, and proif not vanquished, we should have retired after It has been considered important not to check ducers and manufacturers, while working under a single indeterminate campaign.
any enterprise for building or for repairs of circumstances of inflated cost, will be exposed To illustrate the wonderful fecundity of a buildings, and to this end building materials, to the chances of making sales in a falling martax on manufactures take but a single instance: such as brick, freestone, marble, slate, roofing- || ket. The reduction must come at some time, the little stamp tax of one cent upon each box of slate, lime, and cement, have been placed on and the pain will be severe if it comes suddenly, matches produced last year about fifteen hun- the freelist. The taximposed upon paper, books, or lighter if it comes more slowly. It is the dred thousand dollars, or enough to arm, trans- and binding, entertained with little hospitality same in the sum total whether hastened or port, and keep in the field fifteen hundred men. from the first, is surrendered the first oppor- retarded. And this tax had not only to contend with the tunity without regret. The tax on knowledge, Savings banks, or provident institutions-by stocks on hand but for some time with exten- as it has often been styled, if it ever existed, | far the most appropriate name-it will be seen sive fraudulent importations. The tax way it is to be hoped will be now abandoned. The are to some extent relieved from the tax on be expected to produce much more hereafter. tax upon all repairs, always indefinite and of deposits, entirely relieved when such deposits
But now the duties of peace return, and we dubious propriety, may also well be removed. If are invested in United States securities or when must simplify our laws, reduce the burdens a horse runs away with a carriage, or a locomo- made in sums not exceeding $500 by any one of tax-payers so far as possible, and cheapen | tive gets smashed, it seems oppressive for the person. It cannot be doubted that it is sound the cost of living. All cannot be done at once. Government to seize the opportunity of such public policy to induce those having but small We shall, do the best we can, leave something || misfortunes for levying a fresh tax.
earnings to establish a habit of thrift and econto be done by the next Congress and by future We have proposed to exempt coal from any omy by using these savings banks as a place of Commissioners of Revenue. At an early day tax. If we regard it as an article of fuel we trust. Does it not speak well for the character spirits, malt liquors, tobacco, cigars, cotton, cannot any longer afford to dealers the excuse of our people, as well as that of our country, stanıp taxes, and perhaps a small number of of a tax for a dear price. If we look upon it
that these institutions now hold of these small other objects, it is to be hoped, with custom as the raw material from which gas is made, the earnings of the common people $500,000,000? duties, will afford revenue commensurate with tax on the latter would seem to be as great as Where else can a similar fact be cited? Woall the wants of the Governinent. The fixed we ought to subject an article so indispensa. men, young persons, and those unskilled in economy of all civilized nations requiring large | ble to the population of all our cities and most making loans and taking securities, who posrevenues appears to be to squeeze out of those considerable towns. If we look upon it as sess too little to be reached separately by taxes, articles considered as luxuries by mankind- the chief source-the hidden giant-of steam should not be taxed when assembled together, or which sustain and soothe but never slake power, which drives so large a part of our ma- but rather deserve the paternal care of the habits deplored by good men everwhere-the chineryused in manufactures, from which so Government. largest sums which the most stringent laws will much of our revenue accrues, it certainly pre- The tax on the gross receipts of express com. secure, and our practice in this respect from sents strong claims to be free.
panies was raised in the bill as first reported this time forward should doubtless conform to Iron being an article of such large consump- from three to five per cent., but, upon further that of the world. Some changes are now pro- tion, shaped into such multifarious forms for consideration, in the revised bill the rate has posed relative to tobacco and cigars, concern- the use of mankind, employing numbers so been restored to what it is now by existing law. ing the utility of which I have serious doubts. vast in its production, and an abundant supply || When we are reducing taxation in every direcI fear the door which for the past year seemed | being almost a prerequisite in peace or war to tion, it appeared too invidious to single out one cfpectually closed will be again opened to national independence, the Committee of Ways class of business, and that one giving marked fraudulent practices, and that the revenue as and Means have been willing to wholly exempt distinction to American enterprise, and doom well as the honest dealer will suffer. Still we pig iron, railroad iron, railroad iron rerolled, || it to a tax equal to twelve or fifteen per cent. must not be deaf to any well-founded com- when in the form of, and to leave but three upon its net annual receipts. plaints of the people. I know that gentle
ton upon bar iron, Cheap iron is The tax upon telegraph companies has also men, for whose opinions and wishes I have an advantage to the whole country, and espe- been placed upon the same level, or reduced great respect, from districts where low-priced || cially so to agriculturists, to artisans, and even from five to three
cent. One of the comtobacco is produced find their people clam- to the day laborer who wields but an ax or a panies last year paid to the Government a tax orous for grading the tax according to values. || spade. It is also important that we should not upon $700,000 gross receipts, amounting to On the face of it the claim would seem to be discourage railroad enterprises by making their || $35,000, when they had made an absolute loss just. But I am told by officers connected with cost so great as to frighten away all capitalists. of $100,000, or $65,000 besides the tax. the administration of the internal revenue laws Our iron should be made at home, but let us Express and telegraph companies may not that the law as it now stands is working well, || give our own people a fair chance to make it all deal liberally with the people, and may seek and that the tax on smoking tobacco should || cheaply.
extravagant profits, but the Government of the not be reduced. Experts believe that any fair That the universality of a tax upon all de- United States could hardly be expected to base discrimination cannot be honestly enforced, || scriptions of manufactures, in any state or con- its legislation upon resentments thus engenand the loss to the Treasury may be large. | dition when offered for sale, tends to a dupli- dered unless the companies were the creatures The tobacco-growing and manufacturing inter- cation of taxation, is sufficiently obvious, and of its own creation. Such abuses are more est, it is true, has been and is now greatly || the Committee of Ways and Means have sought properly corrected by State legislation, or by depressed, but not so much on account of the to remedy this evil so far as they could consist- even the more potent influence of competition form or amount of the tax as on account of the ently with their duty to the Government, whose and public opinion, large influx of untaxed tobacco which flowed wants though diminishing are still imperative. The tax in schedule A, although one of an into our markets upon the cessation of the The increase of the tax on all manufactures inquisitorial character, and therefore objecrebellion; and it may be added, too, that our last year, one fifth, or twenty per cent., as our tionable in form, has been retained in part by tariff upon foreign cigars is much too low. law of last year provided for, it is now pro- the committee on the ground that the own
The bill proposes to wholly exempt from tax- posed to repeal. Steel being in the nature of ers of carriages valued at over $300, and gold ation many articles, and to largely reduce it à raw material, a manufacture in its infancy watches and silver plate, were among those upon others, and among these will be found and in some peril from the pressing competition persons best able to contribute something to slaughtered animals, salt, sugar, starch, coal, of the Old World, it is deemned expedient to the support of that Government under whose soap, vinegar, saleratus, clothing, and boots entirely exempt from tax, and more especially | protection they have been able to acquire artiand shoes. These exemptions and reductions as it will mostly be taxed when it reaches a cles indicative of wealth and assured means of will lessen family expenditures and be a relief more advanced stage of manufacture. The same support. to all classes of the community. Dress-makers || argument applies to iron, which we have not The law in relation to licenses, it will be seen, and milliners, wielding a potent influence, as Il yet felt able to wholly release; and also to cop- has been entirely changed in form, although persons, then
the substance of the tax will be found adher- be suppressed by heavy penalties and by their that to do otherwise would be to fail in average ing to it. A special tax takes its place, and prompt enforcement. That a large trade has smartness. will, it is supposed, do equal service without been carried on the past year in the manufac- 3. When we take into consideration the being liable to the objections made in some ture of small copper stills there is abundant sources from which income is derived, the quarters that it is an attempt to regulate the evidence. If these should be suffered to be habitudes of the different persons who pay the internal commerce of the States. Members used clandestinely, as it is to be apprehended tax, the difficulty of apportioning it so that of the House are aware that a case is still pend- may have been the design, not only would the each will have paid in just proportion to every ing in the Supreme Court of the United States Government be deprived of a large amount of other person, leaving each relatively in the same involving the constitutionality of the existing revenue, but public morals would be more or conditions, the perplexities become almost license law, and that this case, after having less debauched. The Committee of Ways and insurmountable. been tried, was considered of so much impor- Means recommend, with some modifications, a Entertaining such views, and the pressing tance as to be postponed until next term, when large part of the changes in the law as to spirits exigency having passed, we have undertaken to the decision, whatever it may be, will be an- proposed by the revenue commission in order lessen but not to entirely remove the weight of nounced. I do not suppose that the court will to increase its efficiency. It is believed that the income tax. To this end we propose to be very eager to overturn the legality of laws the country, as well as Congress, are in favor exempt the first $1,000 of every person from which find
precedents in our Statutes-at-Large of obtaining the maximum amount of revenue any tax and only to reach any excess beyond almost from the foundation of the Govern- from spirits, and that we are not so eager to that amount. This will increase the sum ment, but other gentlemen may think differ- reduce the cost of intoxicating liquors as to be exempt from $600 to $1,000. Exactly how ently, and from abundant cantion, as we are unwilling to wait until experience has fully much of a reduction it will make in our receipts revising the internal revenue laws, and as the tested the policy or impolicy of the highest cannot be foretold, but probably not over ten technical objection, if there be one, can be so rate of taxation as now fixed by law. It is to fifteen per cent., while it is likely to diminish easily removed, the Committee of Ways and understood that the method of mixing wood- the number of persons taxed nearly one half. Means have made the alterations to meet any acid with alcohol, as practiced in England, so If it should excuse fifty thousand circumstances that may arise, whatever they that alcohol might be used in the arts and man- the reduction will amount to $1,000,000 for may be. There is no necessity for transcend- ufactures without the payment of any tax, has every such fifty thousand persons. There is ing our legitimate authority, which is merely to proved a failure, it having been found that such | perhaps no just reason for excusing any portion obtain the proper amount of lawful revenue in methylated spirit can be rectified and made into of the income of any one from the tax, except the least objectionable form.
pure spirit again without any offensive smell. that of the hardship and the inability of persons It is not proposed at this time to change the If any chemical preparation could be found with a limited income to spare any part of it, rate of the tax on spirits nor upon malt liquors, which would accomplish this object its discovery but that is enough. mainly that we may have the law of high rates and adoption would be a great relief to many In a republican form of government the true in operation a sufficient length of time tes legitimate branches of arts and manufactures. theory is to make no distinctions as to persons its real value for revenue purposes, and inci- The Committee of Ways and Means have in the rates of taxation. Recognizing no class de tally, no doubt, its value as a mode of repres- proposed some modifications of the income for special favors, we ought not to create a class sion in the consumption of intoxicating bever- law, but have not reached the conclusion, for special burdens. Pursuing this principle a ages. For the largest revenue purposes, the while the industrial employments must remain majority of the Committee of Ways and Means rate of two dollars per gallon, although the time to a considerable extent heavily burdened, have agreed to that portion of the bill which elapsed since its adoption is too brief to defi- that it can yet be wholly dispensed with. By makes the income tax after this year a uniform nitely settle the question, seems likely to prove its terms, as originally passed, it was to expire one of five per cent. upon the annual gains. unsatisfactory; and if it were an original ques- in 1870, and thus a temporary character was The loss to the revenue will be large-about tion, the recommendation of one dollar per gal- put upon its face. In our great emergency it || $17,000,000—and it will be for the House to lon by the revenue commission would not be contributed, not to be returned again with in- say whether the bill shall stand as reported or disregarded by the Committee of Ways and terest, a larger amount than the richest bankers whether relief in any other direction is more Deans. It is very clear that the whole tax in Europe would have loaned to us even at sixty | urgently demanded. fails to be collected, as the price has at no time per cent. discount. Our loyal people paid the I shall append to my remarks an appendix or at any place been equal to the cost of spirits income tax of 1863, in June, of $20,740,451 33, | containing an estimate, made with the aid of with the tax added thereto, and in some parts and then (estimated upon the same lists) they | the office of the Commissioner of Internal Revof the country the price has occasionally been were called upon in four months to pay another enue, of the reductions appearing to me likely below even the amount of the tax. The amount income tax, and they responded by contributing to occur in consequence of the present revision of spirits of domestie manufacture returned to $28,929,312 02. Again, in 1864 their income of the law. Other gentlemen may differ from the assessors for 1865 was 16,936,778 gallons tax foots up $59,000,000. I point to these facts me and count upon greater compensations to as against 85,285,391 gallons in 1864, show- not only as a proud 'evidence of their patriot- counterbalance these reductions, but I have ing a falling off of nearly four fifths of the ism and wealth, but as a proud evidence of their never found that sanguine financial predictions whole amount. It is to be noted, however, that strict integrity of character. Strong as the were safe for legislators. much was distilled in 1864 in expectation of temptation might be for evasive returns, sore In our list of exemptions we strove to reach an increase of the tax, and this accounts for as they might be in consequence of the swift earliest those articles upon which a reduction a diminished business in 1865, but does not pursuit and the continuous exactions of the tax of cost would bring relief to the masses of our prove a diminished consumption. Notwithstand- gatherer, they even paid more in 1863 upon the people, and those which are produced with ing the heavy increase of duties upon foreign second call than the first. Their country was such lean margins of profit as to be opposed liquors, the total importations have not been || in need, and even the greed for gain could not and in danger of being annihilated by even so materially curtailed. Our experience is likely tempt the American people to defraud their small a tax as five or even three per cent., to correspond with that of the world, which is, Government. The law left it almost to the which is not unfrequently, upon branches of that the appetites of men for spirituous liquons conscience of each man as to how much he industry closely cornered by foreign competiare held in check very little by high cost unless should pay, and all seemed to vie with each | tion, in excess of what may
be considered reg. that cost is very exorbitant, and only those in other as to who should pay the most. I ques- ular and satisfactory profits. the most indigent circumstances check the reg. tion whether any people ever paid a tax more I know that many gentlemen will render val. ularity of their indulgence or surrender any honestly and accurately, and I question still uable assistance in the progress of the bill, and portion of their accustomed allowance. more whether any.free people ever imposed all will feel bound to show that they are alive
It is curious to note that iron manufacturers, upon themselves, through their chosen Repre- to and not unmindful of the interests of their in making up the calculation of the increased sentatives, taxes so thick and fast.
respective localities, and some may wish to cost of a ton of iron, putin $250 as the increased If our income tax should be contemplated || press amendments giving such interests furcost of whisky, and the employer is compelled, as a part of the permanent policy of the coun- ther relief; and it is fair to allow a prominent no doubt, to increase the amount of his monthly try it is not to be denied that it would need record of the fact to appear in the Globe; but pay-roll to cover this new item in the cost of various and perhaps fundamental amendments. if the House shall reach the conclusion that living. It may be inferred that the consumption The objections to such laws are sufficiently we have proposed measures which will reduce of liquors in the length and breadth of the land | obvious.
the revenue as much as it will be prudent to is as large as ever, but that the tax has not
1. They are inquisitorial of necessity in their do this year-keeping in view the unestimated been, possibly cannot be, collected. The great character, and Americans, like people else- drafts our legislation has made and is likely to temptation to illicit distillation and to smug- where, though not averse to a knowledge of make upon the Treasury-remembering, in the gling which arises in cases of the imposition the secrets of others, are quite unwilling to dis- large operation of funding our national obliof high duties upon liquors calls for the enact- close their own. Among commercial men such gations so that they may bear the lowest rate ment of stringent, almost despotic laws, not disclosures may be disastrous. If they show of interest, that fifty millions now may be more merely for the punishment of fraudulent prac- prosperity they invite envy and greater com- important to success than two hundred miltices, but for the protection of the honest im- petition; or if they show any remarkable lean- lions at a later period--I trust that the good porter and honest distiller. Owling, or the ness they damage credits.
sense and forecast of members will lead them carrying of wool ont of the kingdom, was for- 2. The temptation to make understatements to vote down propositions for essential changes. merly punished in England by the imposition and lend to these statements the sanction of The result of the labor of the Committee of of heavy penalties, and we have found that the
an oath tends to sap and mine public morals, || Ways and Means is, that of the headings in the introduction from Canada of tin babies filled until men begin to excuse themselves for their Commissioner's report of the “receipts from with whisky by their reckless parents can only own wrong doing, because, it being so common, Il specific and general sources" Gifty-nino out of