Democratic Sentinel, Volume 17, Number 25, Rensselaer, Jasper County, 7 July 1893 — INCOME TAXATION. [ARTICLE]

INCOME TAXATION.

IT IS LESS BURDENSOME THAN THE TARIFF. * ZU Evils Would Be Confined to the Rich Instead of the Poor—An Expose of Custom House Corruption The Mexican Corn Famine. Tariff Versus Income Tax. Representative John DeWitt Warner thinks that the people would “suffer" an Income tax sooner than a tax on tea and coffee. They would “suffer* in either event. Let the present tariff alone and the people will not “suffer" at all.—New York Press. Does the Press know of a tax that does not make the people “suffer?" Undoubtedly such a tax is possible, though it has never been put into operation. It is, however, at the opposite pole from the indirect, insidious and accursed protective tariff tax which stealthily robs the poor consumer of from one-tenth to onefifth of his food and clothing; which cripples the great bulk of legitimate and independent industries to pamper up a few favorites; and which injures a nation by turning its producers from profitable to unprofitable occupations, making it unable to compete in any but its own “protected” markets. An income tax is a burden, but, to the extent to which It can be worked, it is less of a burden than any direct tax —even though it be a tariff for revenue only. An income tax is necessarily inquisitorial and will lead to wholesale perjury and fraud on the part of those fortunate enough to be overtaken by it. Under it the dishonest will largely escape and the honest “suffer.” But, even though it extends to incomes as low as 92,000, it will not cause great hardship. It will never enter the houses of the poor to shorten their stay on this earth by compelling them to wear shoddy instead of wool; to eat unwholesome and Insufficient food; to suffer with cold and, perhaps, to freeze for lack of food, cheap coal and blankets; and to put up with uncomfortable and cheap ware, furniture and tools. It will enter only the homes of the few rich, or comparatively rich, and compel them to contribute somewhat in proportion to their means to the expense of the Government which protects them. It will not ask the 6,000 or 8,000 millionaires who have grown up under protection and special privileges to to return any of the wealth which they have sequestered into their coffers to the consumers from whom it was taken, but it will ask the millionaires to turn over tc the Government a little of the Interest which they are obtaining on their ill-gotten gains. The depredations and the evils of an income tax will be confined chiefly to the rich, who will by cunning and perjury seek to evade the tax and to shirk their duties as citizens. This tax will not cause one-thousandth of the suffering that is caused by taxes on consumption and production. If there is a particularly warm corner in the nether regions of the next world it should be reserved for those responsible for the protective tariff system of taxation—a system that has caused more misery on earth than has any disease or famine.—Byron W. Holt.

The Mexican Corn Famine. Gen. Warren T. Sutton, Consul General of the United States for Northern Mexico, has just sent in his official report on the subject of the exportation of grain from this country to Mexico during 1892. As there was a corn famine in Mexico in 1892, an unusual amount was demanded from the United States. Gen Sutton says: “Had it not been for our nearness and unlimited supply, thousands of the very poor of Mexico must have died for lack of food. As it was, there was much suffering, and the effects will be felt for years.” About 6,000,000 bushels of corn' were imported to Mexico in 1892 enough to fill a solid train nearly seventy-seven miles long. Early in 1892 the Mexican government, not being certain that “the foreigner pays the tax,” as McKinley says, abolished the duty on imported corn. This is another open acknowledgment that protection is a burden to the masses. The burden is not so great or so evident in a big country like the United States, which produces nearly all kinds of crops and which never has a famine in all parts of the country at once; but in the countries like Mexico or Canada, dependent, especially in times of famine, upon Imports of foreign commodities, the burden is unmistakable. Even in ordinary years the Mexican Government maintains a “free zone” near the United States border to mitigate the worst effects of protection. This the government is compelled to do as a measure of protection. Its subjects near the border simply refuse to be compelled to pay high prices for articles that they see selling across the line in Uncle Sam’s domain at reasonable figures. In great or small countries “protection" by tariff duties is simply a curse. Its evils may be mitigated by “free zones, ” by temporary abolition of duties, or, perhaps, by “reciprocity”—when two or more countries, by reciprocal agreement, let down the bars to imports; but the evil will not cease until commerce, industry and men are forever freed from the bondage of protective duties and protection superstition.

Dead Again <t the Poor. The working of Republican “protection to American labor” is gradually becoming very clear to the people. In the first place, a law is passed giving to privileged classes of manufacturers the power to impose exorbitant prices without danger of foreign competition. Then, ostensibly to preserve home competition, an anti-trust law is passed. But it is not enforced. Perhaps it cannot be. At least, producers combine to limit production and maintain high prices, and the officials charged with the duty of preventing this do nothing about it. In order to give color to the pretext that high duties are in the interest of American workmen a law is passed forbidding the importation of European pauper labor under contract. But this law also is systematically and successfully evaded. No officer attempts to use the law to prevent the wrong. The Senate investigation now in progress here shows

that the “combines” which are organized in defiance of law constantly Import cheap laborers without hindrance. But the taxes which the consumer has to pay are enforced relentlessly. The whole system, from beginning to end, and in all its parts, operates to favor the rich and to oppress the poor.—New York World.

Custom House Corruption. The commission to investigate the custom house, though it has only begun its work, has already uncovered great heaps of rottenness. Undervaluations, favoritism, bribery, perjury—these are the sins that have their headquarters in the custom house and that flourish in every department It is impossible to tell from the conflicting testimony thus far taken in the Appraiser’s department who the perjurers are and who are most guilty. It Is only certain that the department that appraises threefourths of the 8400,000 000 worth of dutiable goods that enter our ports annually is a den of corruption. It is also quite certain that the importers of New York City are terrorized by the custom house officers, who can, by favoritism, make or break an importing merchant As past Investigations of this kind have been a farce, in that they did not lead to the discharge of officials who were proven guilty .of favoritism in the valuation of goods or who maliciously detained goods at the custom bouse until they had lost much of their value, the merchants now believe that the present investigation will lead to nothing except to call down upon their heads the wrath of the officials against whom the merchants testify. Hence the importers, who have goods passing through the custom house nearly every week, hesitate to incur the displeasure of the appraisers by submitting testimony against them. As an evidence of the kind of discriminations made by the appraisers, we quote some of the appralsments of silk handkerchiefs, alleged to have been of identical quality, imported by rival firms: RosenHandkerohlefa. Simon, that. Fan. Co. Isaacs. 2-onnoeto 96 fl io tl 06 4-ounoe 1 44 169 ITO $2 03 6- 176 2 20 .... 2 24 6)4-ounce 1,92 2 15 2 U 2 50 7- 2 49 2 77 .... 8 13 7%-ounoe 2 62 3 19 BM-onnoe 3043*8 364 3 61 12-ounce.4 04 4 85 Of couse, with an average discrimination of about 25 per cent, in favor of J. R. Simon & Co., It Is only a question of time when their competitors will be driven out of the business. So great are some of these discriminations that importers can sometimes purchase cheaper of their rivals than they can abroad. The temptation is so great, and human nature so weak, that it is likely that custom house fraud can be stopped only with the abolition of custom houses themselves.

McKinlev** Renomlnatlon. The platform on which Governor McKinley has been renominated shows no abatement of Ohio McKlnleyism. Thus it—< 1. Indorses the calamity platform of June, 1892. 2. Praises the wise, pure and patriotic B. Harrison. 3. Ditto the ditto W. McKinley, Jr. 4. Favors the McKinley protection act, with “amendments thereto for protection." 8. Stands by the Ohio ram raisers. & Throws a sop to the farmers inclined to populism. 7. Declares for restricted immigration. 8. Declares for free pensions. 9. Views with alarm the administration of G. a 10. Straddles the money question. And Governor McKinley In his speech of acceptance is the same old Napoleon. He finds the Cleveland administration responsible for the financial evils precipitated by the Sherman law; is still the apostle of protection and indignant at the proposal to purge the pension rolls. Such is McKinley and McKinleylsm.

A Public Reservoir. I saw an interesting sight while in Venice. Entering a little square shut in by high houses, and, like most Venetian squares, dominated by the unfinished facade of a time-stained church, I noticed a singular activity among the people. They were scurrying in from every alley and hastening from every house door, with oddshaped copper buckets on hook-ended wooden bows, and with little colls of rope. Old men and women, boysand girls, all gathered closely about a covered well curb In the middle of the square; and still they hurried on, until they stood a dozen deep around it. Presently the church tower slowly struck eight, and a little old man forced his way through the crowd, passed his ponderous iron key through the lid, and unlocked the well. There Immediately endued a scene of great activity. The kettles went jangling into it and came slopping out again at an amazing rate, and the people trudged off home, each with a pair of them swung from the shoulder. The wells are deep cisterns, which are filled during the night, and It is out of amiable consideration for those who love their morning nap that they are given as good chances as their neighbors of getting an unsoiled supply. I found, on closer inspection, that the water was of excellent quality.

Poetic Justice. They have had income taxes in old England for several decades. The Leeds Dally News, in commenting on the proposition to make up the prospective deficiency of revenue in the United States by an income tax with a high exemption limit, says: “This last is an excellent proposal, and we hope it will be carried into effect. It would then be the millionaire manufacturers, who have made their “piles” by protection, who would have to provide the bulk of the immediate loss to the revenue caused by the lowering of the tariff. That would be poetic justice, indeed.” Successful Farmee—Son George got some sense- durin’ that foreign tour anyhow. Wife—l hain’t seen it. “I have. You know he spent a good while in Lunnon, as he calls it.” “Yes, an’ I’d like to know what good it did.” “Use y’r eyes, Miranda. He learned to turn up his pants w’en it rains.”—New York Weekly. “You say in the mean time. To what period do you refer?” “To house-cleaning. "—Detroit Tribune.