748 POPULAR SCIENCE MONTHLY. 



clear that sncTi an exemption constitutes another and indirect 

 form of taxation incumbent on the American people ? 



What the National Revenue was in 1896, and what 



MIGHT BE anticipated IN THE IMMEDIATE FUTURE FROM CER- 

 TAIN Modifications op the Existing Tax System, The reve- 

 nues of the Government from all sources exclusive of the postal 

 service, in which the receipts and expenditures closely balance 

 for the fiscal year 1896 were $326,976,200, of which $146,762,864 

 accrued from internal-revenue taxes, and $160,021,751 from 

 customs. 



Contingent on the modifications of the internal- revenue sys- 

 tem above proposed, the annual receipts from this department, 

 considered in reference to the special sources pertaining to it, 

 would, without much doubt, be approximately as follows : 



FroTYi distilled spirits, provided there is no exemption of any 

 part of its product from taxation for any purpose, $100,000,000: 

 a result more likely to be attained if the present ratio of tax, 

 $1.10 per proof gallon, be reduced to its former rate of ninety 

 cents. 



From fermented liquors, with an increased tax to the extent 

 of $1 per barrel, $60,000,000. 



From tobacco, on the assumption that political and popular 

 sentiment will not permit any increase of rates, $35,000,000 ; 

 although, if a fiscal policy in furtherance of the best interests of 

 the Government were alone considered, the annual accruing rev- 

 enue from this source would be at least double. 



From petroleum and its derivatives, $24,000,000. 



From stamps, $30,000,000, which can be readily increased to 

 $50,000,000. 



From tea and coffee, under a twenty-per-cent duty, $20,000,000 ; 

 under a duty of forty per cent, $40,000,000. 



From sugar, such a rate of duty on its import as will insure 

 an annual revenue of at least $50,000,000. 



Total, $319,000,000, leaving a deficit, on an estimated annual 

 expenditure of $500,000,000, of $189,000,000. To meet this re- 

 quirement, the entire revenue from customs, other than from the 

 imports of sugar (already considered), and incidental revenues to 

 the extent of $15,000,000, are available. 



Doubtless, to many the proposal to increase the existing num- 

 ber of special sources of national revenue, with modifications of 

 existing rates, will seem inexpedient and unnecessary; but, with 

 a constant tendency to increase national expenditures, it is only a 

 question of time when such changes will have to be made ; and 

 the future record of the new administration and the new Con- 

 gress, for good or for ill, will be largely determined by the man- 

 ner they answer this question: Shall money be saved by new 



