CONGRESS. (TnE DIRECT-TAX BILL.) 



231 



inent apportioned to their populations respect- 

 ively. The Territory of Washington never 

 paid in full, but all others of the Union States 

 and Territories assumed and paid the tax, mark 

 you. not as States and Territories, but they col- 

 lected it from the people, and for the employ- 

 ment of their machinery in collecting this 

 money from the people they retained 15 per 

 cent, of the collections, which aggregated 

 $2.250,000. And, gentlemen, it was asserted 

 here yesterday, that this bill carried $15,000,- 

 000 only. If you will examine it you will find 

 that it covers the whole field, including the 15 

 per cent, deduction, and that it aggregates 

 $17,500,000. 



" In the Southern States it could not at the 

 time be enforced, but as the Union arms con- 

 quered that territory collectors of this tax fol- 

 lowed and collected by assessment and sale in 

 many cases, and in many others by receiving 

 in money directly from the property owner the 

 amount of assessments against his property. 

 There were many irregularities in some of the 

 conquered districts in the matter of the ae 

 ments and collections. A notable instance 

 was that in South Carolina, where the entire 

 town of Beaufort was sold after the notice of 

 sale had been misdescribed so far as the prop- 

 erty was concerned, the notice given being of 

 a misleading character, and thus the property 

 was thereby sacrificed and the owners robbed 

 of their homes. 



" After the war the process of enforced col- 

 lection in the Southern States continued. 

 Greater progress was made in some localities, 

 as in Louisiana, South Carolina, and Virginia, 

 than in others; but in none, save the State of 

 Louisiana, were the collections completed and 

 the sum raised which had been assessed to 

 them. 



" After the war, in view of the condition of 

 affairs in the South the industries of the people 

 completely revolutionized, everything out of 

 joint, the people broken down in fortune and 

 prostrated the Congress from time to time 

 passed acts delaying and postponing the collec- 

 tion of this tax in those States ; the last of 

 which was passed in 1868 and extended the time 

 to the 1st day of January, 1869, since which 

 for a period of twenty years no effort what- 

 ever has been made to collect a dollar of this 

 tax. 



" The aggregate of collections is about $17,- 

 500,000, which leaves uncollected $2,500,000 

 only in round numbers, or one eighth of the 

 original assessment. And this alone is the 

 pretext upon which the passage of this bill 

 is urged because only one eighth of that 

 tax remains uncollected and which has been 

 allowed to sleep for twenty years, it is now 

 made the pretext for bringing forth this bill to 

 deplete the Treasury of $17,500,000 in the in- 

 terest of those who desire to get rid of the 

 surplus in the Treasury otherwise than by re- 

 ducing the taxation which now burdens the 

 people and cripples our national prosperity. 



Other gigantic schemes of misappropriation are 

 to follow if this be successful." 



Mr. Wheeler, of Alabama, criticised the 

 measure as essentially unfair : " The effect 

 of the cotton-tax law would be to pay money 

 back to those from whom it was wrong- 

 fully taken. It would be very difficult, if not 

 impossible, to return the money to those 

 by whom the direct tax was actually paid, un- 

 der the bill now being considered, as most of 

 the $ 1 7,000,000 was paid by the States. Again, 

 those States whose population and wealth have 

 increased since 1861 wonld be losers, while a 

 State which has not been so fortunate would 

 gain if the direct tax were refunded. In dis- 

 cussing the equity of questions like these we 

 must assume that the $17,000,000 proposed to 

 be paid must be collected in some way from 

 the people, and we must further assume that 

 States pay taxes, substantially, in proportion 

 to their population and wealth. Proceeding 

 under these assumptions, Maine, for instance 

 (if we except Vermont), has changed less than 

 any State, her population being about 3 per 

 cent, greater than in 1860, while the popula- 

 tion of Nebraska has increased about 3,000 per 

 cent. Again, the assessed value of property in 

 Maine has increased about 72 per cent., while 

 in Nebraska the increase in the assessed value 

 of property has been more than 3.500 per cent., 

 now surpassing Maine in both wealth and popu- 

 lation. Nebraska's part of the direct tax was 

 $19,312, while that of Maine was $420,826. 

 Maine would get twenty dollars for every one 

 received by Nebraska, and yet the amount 

 Nebraska would have to pay to make up the 

 $17,000,000 would exceed that which would be 

 contributed by Maine." 



The argument for this bill was put by Mr. 

 Buchanan, of New Jersey, as follows: "Al- 

 though this tax was an annual tax, no attempt 

 was made to levy or collect it beyond the 

 first year. Other means of raising money 

 were found, and this tax, so unequal in its 

 operation, paid only by the loyal States, or 

 enforced by seizure and sale in conquered ter- 

 ritory, already impoverished by the misfortunes 

 of war, was abandoned. By a report from 

 Ros. A. Fish, assistant register of the Treasury, 

 dated March 22, 1886, the amount levied upon 

 the several States, the per cent, allowed for 

 collection, the amount collected in each in- 

 stance, and the balance remaining due, as ap- 

 pears by the books of the Treasury up to that 

 date, is shown. 



"By this report it will be observed that 

 $2,640,314.49 remains uncollected from four- 

 teen States and Territories, that $17.359,685.51 

 was paid by the States and Territories ; and of 

 these twenty-nine, each paid in full. This 

 table is the strongest argument which can be 

 presented, showing the inequalities of this col- 

 lection. For instance, while Alabama's quota 

 was $529,313.33, she still owes $511,028.30; 

 Wisconsin's quota was $519.688.67; she has 

 paid it all. Tennessee's quota was $669,498 ; 



