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The Tariff

The Tariff image
Parent Issue
Day
5
Month
January
Year
1846
Copyright
Public Domain
OCR Text

The Tariff

For some months past, as opportunity has permitted, we have presented our views, with entire frankness, upon all the topics of public interest which have come our way. We have shown what course we think each patriotic citizen should take representing "the great interests" of the country; and in doing this. we have marked out a course of policy for a truly patriotic political party. The Abolition of Slavery, by peaceable and constitutional means, should be the first and greatest object of such a party. The domination of the Executive power, by giving to the People the election of as many officers, both national and state, as could properly be selected by the voters, would also be one of the principles of such a party. A reform of the Legal System of the country would be an important object of attention. The greatest possible security against losses to the community through the action of lrresponsible Corporations would be a fourth object. No Public Debt for any purpose whatever, would be approved by such a party, while a reduction of Fees and Salaries according to the amount of talent and industry required in the several offices, would not be overlooked. These six subjects of Reform, we think would procure a generous support from the most of the People to any political party that should honestly and consistently seek their accomplishment. Whether the great majority of our readers are prepared to act in favor of these Reforms, we have no certain means of knowing; but from all we have learned, we judge that our suggestions have received a candid and thoughtful consideration. We will, therefore, complete our course of remark, by our views upon the remaining topics of Public Policy - the Tariff, the Army and Navy, and the Public Lands.

We all know how vain would be the attempt to refute the arguments of Tariff men or Free Traders, by any processes of reasoning, however ingenious or profound. Like the Irish Schoolmaster,

"E'en though vanquished they can argue still."

The most absurd positions, as well as the most sensible, are sometimes taken by the champions in this controversy. To answer all these would be endless, as well as uninteresting and unprofitable. Without entering into the abstract speculations of either party, we shall therefore pursue our usual course of practical investigation, and inquire - How can the good of the whole country best be promoted?

Where there is an organized Government, there must be a revenue to meet its expenses. All its expenses should be promptly met by the citizens. No debts should be incurred, unless in extreme cases, and then a tax should be immediately levied to meet it. The annual expenses of our National Government will average about $50,000,000. This amount must be be raised from the earnings of the People. It is vain to say that there is no need of spending so much, or that it is foolishly spent. That is nothing to the purpose. If the People choose to reduce the expenses, or expend it more wisely, they can do so; but until they do it, the thirty millions ought to be raised. This amount can be levied in two ways; by a tax on the Property of the citizens, as already accumulated by the savings of ages; or by a tax on their Industry and Property, compelling them to pay a certain amount on the articles they consume from day to day. - The first method is called Direct Taxation: the latter, in this country, is effected through a Tariff. Some nations raise their revenue chiefly by one plan, some by the other; and usually both direct and indirect taxes are imposed. A nation that had no seaports, and very little commerce, would find it inconvenient, not to say impossible, to secure an adequate revenue from Customs only. The United Stales, being a commercial people, and importing largely, have for the most part raised a sufficient revenue from Duties to meet the national expenditures; but the internal expenses of the respective States, which we suppose amount to $30,000,000 annually, are all raised by a direct tax, assessed chiefly upon the property of the inhabitants. There are many who would have all the national taxes assessed upon property, in the same manner that State and County taxes are; but in our judgment, such a plan, is at present, utterly impracticable.

The whole number of voters in the United States is not far from three millions. A considerable portion of these have no taxable property whatever; but there are many persons not voters who have property, and are taxed. So that the whole number of taxpayers in the Union might, by possibility, be three millions, though we estimate it considerably less. Now, a tax of thirty millions of dollars, imposed upon three millions of payers, gives an average of Ten Dollars each, in addition to the amounts now paid for State, County, Town, Corporation, and School taxes. As a vast number of the payers would have but little property, the burden would fall heavily on the rich, and on those in moderate circumstances. A small farmer, worth a thousand dollars, would be required to pay a national tax of at least twenty or thirty dollars; while a forehanded farmer, worth $10,000, would be assessed several hundred annually. Common sense, we think, must teach every person of any observation, that such taxes, in a country like ours, could not be collected. - The burden would be so great that the payers in many sections would utterly refuse, and if they could not evade them by fraud, there would be a disposition to resort to force. We, therefore, cannot regard favorably the plan of direct taxation, under the present circumstances of the country, inasmuch as it would be attended with grievous distress to the payers. Whereas under the present Tariff, a great amount is raised from the people annualIy, without much grumbling or dissatisfaction, on the part of taxpayers, and almost without their knowing it. Where a large tax is to be collected from a commercial people, a Tariff will be found the easiest method of raising it.

Other reasons against raising the amount of our present National Expenditures Direct Taxation might be named; but when a proposition is found to be impracticable, in the nature of the case, the necessity of all further argument is superseded.

We therefore, would go for a Tariff, and not only so, but we would go for the present Tariff, unless it should be found to work very injuriously to the people. We would do this, not because we think the present one entirely equal or unexceptionable; or because a better might not have been framed; but because, we are opposed to all sudden and unnecessary alterations of the rate of duties. A sudden and material change, in so important a matter, is in itself an evil. It unsettles and impairs the business of men, produces doubt and uncertainty, and begets a gambling and speculating spirit. All changes in a Tariff policy, when necessary, should be so gradual and moderate as to save as far as possible, all the interests vested under its provision.

The principal object of having any Tariff is to raise a revenue for the Government. Tho Tariff should of course be made to raise so much as is necessary; and no more. A Surplus Revenue is a public nuisance. If the Revenue can be permanently reduced one-half or two-thirds, the Tariff of duties should be reduced accordingly; or, if the number of taxpayers be large, and the amount to be raised quite small, the Tariff might be abolished altogether, and Direct Taxation substituted with much advantage. Let us consider, for a moment, how such a change may hereafter be made in our own country, by abolishing the expenses of War.

The estimated expenses of the nation for the year preceding the 30th of June, 1847, according to the official report of the Secretary of the Treasury, are 25,518,615. The items are as follows:

Civil list, foreign intercourse and miscellaneous, $5,925,292 60*
Army proper, 3,364,458 92
Fortifications, ordnance, arming militia, &c. 4,33I,809 93
Pensions, 2,527,100 00
Indian department, 2,214,916 12
Naval establishment, 6,339 390 88
Interest on public debt, 335,844 72
$25,543,513 25

The whole War expenses for the year, allowing one half the estimates of the Indian and Pension departments to be for warlike purposes, will amount to $16,596,660: while the remaining expenses of the nation, exclusive of the Public Debt, will be only $8,286,295, or one-third of the whole amount. Two thirds of the whole revenue is expended for War, in a state of profound peace.

There can be no doubt that these expenses might be diminished two millions more, by a reduction in various particulars, leaving the whole amount of expenditures, for national purposes, at only six and a quarter millions. - The average to each taxpayer would be about fifty cents. The income from the Public Lands would reduce this sum still more. To raise this amount, Direct Taxation would be far cheaper than the Tariff system, as by that a vast number of officers would be required to collect a small amount of Revenue. The good sense of the people, under the circumstances, would doubtless change the mode of raising the tax.

In a state of things when warlike preparations shall be no longer necessary, we see how Direct Taxation will not only be practicable, but wise and economical. The continuance of the War system is all that preserves the Tariff in existence. Take away the Military and Naval expenses of the nation, and the Tariff would fall of itself. Whenever these shall be entirely dispensed with, if the other expenses of the Government be not much enlarged, the Tariff will also be abolished.

Whether the War expenses of the nation can be wisely abolished in part, or altogether, we will consider in a future article.

*The sum of $121,050 of debt assumed for the cities in the District of Columbia, the sum of $1,000,000 for supplying deficiency in revenues from postage, and $350,000 for postages for Congress and Executive Departments, are included in the sum of $5,925,292 62.

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Signal of Liberty
Old News