66 PROCEEDINGS OF THE 



not wish to pay a tax on tobacco can refrain from using it. Often he pays 

 it without knowing or thinking of the fact of taxation. 



Of these indirect taxes we have : (1) Customs, which are taxes levied on 

 imported goods at the port of entry, and (2) tlie Excise, which are taxes 

 on home products. These taxes are levied on various and more or less 

 discordant theories, and often, on no theory at all. Ease and economy in 

 collections, suggest the taxation of but few articles. The policy of 

 making the rich, or at least the extravagant, pay the most taxes, suggests 

 taxes on luxuries. What is sarcastically called the " protective " policy 

 aims at excluding foreign products, and producing and consuming home 

 products. Where the greatest amount of aggregate revenue is sought, a 

 low tax on articles of general consumption is proved best. Practically, 

 in our American experience at least, no principle is followed. There is a 

 struggle between conflicting interests, and the best lungs, the sharpest 

 wits and the most audacious mind have their way, without much reference 

 to the general welfare. Even at such a crisis as came in 1861 and 1862, 

 when patriotism, if ever, rose above profits and per cents, the very neces- 

 sities of the country " were taken advantage of, under the guise of patriot- 

 ism, by the advocates of protection, for the furtherance of their policy in 

 respect to certain special interests." (Wells' Cobden Club speech.) 



OUK NATIONAL REVENUE 



is derived, — taking the fiscal year ending June 30, 1874, as an example — 



from the following sources : 



Customs $163,103,833.69 



Internal Revenue 102,409,784.90 



Public Lauds 1,852,428.93 



Miscellaneous 32,575,043.32 



$299,941 090.84 

 Premiums 5,037,665.22 



Total $304,978,756.06 



By this you will notice that 87 per cent, of our national income is 

 derived from Customs and Internal Revenue taxes, both of which are 

 indirect taxes. Analyzing these roughly, we find that the revenue from 

 Customs was derived mainly in that year from the following articles (I 

 omit, for the sake of brevity, all articles producing less than $5,000,000 of 

 revenue, and add the value and approximate per centage of duty on 

 value): 



Cotton Manufactures 



Flax and Manufactures 



Iron and Steel 



Silk and Manufactures. . . . 



Spirits and Wine 



Sugar and Molasses 



Tobacco and Manufactures. 

 Wools and Manufactures.. . 



Value. 



$24,922,253.97 



18,841,747.47 



34,709,345.47 



25.298,451.67 



8,587.051.51 



92,614,832.33 



8,371,818.61 



59,287,931.65 



Duty Amount. 



$ 9,041,201.96 



6,241,087.61 



10,920,400.50 



14,198,532.91 



7,965,064.76 



34,860,278.16 



6,150,060.41 



32,326,862 78 



Duty 

 Per ct. 

 .36 

 .33 

 .31 

 .56 

 .92 

 .37 

 .73 

 .54 



These eight classes of articles pay three-fourths or more of the duties, 



