HOW TO RAISE REVENUE. 743 



garded as prosperous times the yearly aggregate of sales not 

 infrequently exceeds 100,000,000 shares. 



Petroleum and its Derivatives. Another source of revenue 

 readily and largely available to the Federal Government, which 

 since 1868 has almost entirely escaped attention, is petroleum and 

 its derivatives. The present annual production of these com- 

 modities is probably about 54,000,000 barrels, and of this product 

 the present annual domestic consumption is estimated at 28,000,- 

 000 barrels of forty-two gallons each, or 1,176,000,000 gallons. Of the 

 balance of product, in either a crude or refined state, 931,785,000 

 gallons were exported in 1896, and therefore exempt from taxation. 

 A tax of two cents per gallon, or eighty-four cents per barrel, on 

 domestic consumption, which could be as readily collected through 

 the agency of stamps as the taxes on distilled spirits, fermented 

 liquors, and tobacco, might yield an approximate annual revenue 

 of $24,000,000. An interesting circumstance in this connection, 

 and one strikingly illustrative of the remarkable change in the 

 industrial and fiscal relations of this product in the last thirty 

 years, is to be found in the fact that when refined petroleum was 

 previously taxed by the Government the rate was fifteen cents 

 per gallon in 1866 and ten cents in 1867 ; the amount brought to 

 charge during the latter year being 24,999,000 gallons, as compared 

 with over 1,000,000,000 gallons accessible at the present time. 



Inasmuch as the Federal revenue, customs and internal, is de- 

 rived on principle almost entirely from the taxation of commodi- 

 ties of common and popular consumption, especially from distilled 

 spirits, fermented liquors, tobacco, and sugar, there is no good 

 reason why, if a present additional and prospective increase of 

 revenue is needed, a commodity properly belonging to the natural 

 resources of the country, and which has proved a source of im- 

 mense wealth to those concerned in its distribution, should not 

 also contribute to the expenses of its Government, more especially 

 when fully one half of the domestic product, by reason of its 

 being exported, would not be subject to any form of taxation. 

 That a tax of two cents per gallon would probably be entirely 

 transferred by an additional price to the consumer is almost cer- 

 tain ; and yet that there would be no necessity for such action 

 would seem to be proved by the circumstance, that in recent 

 years the market price of refined petroleum for considerable pe- 

 riods has varied more than the proposed rate of tax without 

 any recognized restriction of supply on the part of the trust that 

 controls its product. 



Tea and Coffee as Sources of National Revenues. The 

 policy of making the consumption of tea and coffee sources of 

 national revenue through customs taxation on the imports of these 

 commodities has much to recommend it. The present annual con- 



