'Cbe Conservative *
THE COST OF A NATIONAL CHIME.
of the Itcvcnuc and Expenditure
of the United States 1'ast and Future.
"I speak not of forcible annexation , for thnt
cannot bo thought of. That by our code of
morality would be criminal aggression. "
"WILLIAM McKlNI.KY.
EXECUTIVE MANSION ,
April 11,18(8. (
Many problems nro now pending in
respect to the post and future of national
taxation which may be stated in the
following terms :
First. What are the necessary or
normal peace expenditures of this gov
ernment when economically adminis
tered ?
Second. From what sources have
these revenues been derived ?
Th ird. "Was the revenue derived un
der the act known as the Dingley bill
sufficient to meet the normal or peace
expenditures in the last fiscal year ?
Fourth. "Was it likely to suffice in the
present fiscal year except for the war
with Spain ?
Fifth. Will the Dingley bill with the
recent war revenue act combined yield
a sufficient revenue to meet the proba
ble future expenditures , assuming that
the surplus cash in the Treasury at the
beginning of the war and the proceeds
of fie war loan of § 200,000,000 will have
sufficed to cover the cost of the war ,
which may now be assumed ?
In order to develop the facts in the
case the official figures of the last fis
cal year will bo given and analyzed per
capita.
These figures will then be compared
per capita with the figures of the pre
vious twenty years , 1878 to 1897 inclu
sive.
sive.The
The per capita method of comparison ,
often very delusive , is in this case the
only fit standard because it gives an ac
curate standard of the economy or other
wise of each variation in our fiscal pol
icy , and also because down to the en
actment of the recent war revenue
measures the taxes have been derived
almost wholly from articles of common
use and consumption , and have there
fore been borne in much greater meas
ure by consumers without distinction
than with regard to their relative earn
ings or incomes and their ability to pay.
I.
What are the necessary or normal ex
penditures of the government econom
ically administered ?
From 1878 to 1897 inclusive , a period
of twenty years , the standard or unit of
value was gold , and all transactions
were substantially at that standard ,
specie payment on a gold basis having
been resumed January 1 , 1879. In the
short period covered by this term ante
cedent to that date the so-called prem
ium on gold was so small as to be a neg-
ligablo element in the case.
The following table gives the facts :
a
o do
Year. Net revenue. ? >
Ug
t <
PM
< M
CU o
1878 17,503,000 $257,703,870 00 5.42
1870 48,8W,000 278,827,184 00 5.CO
1880 50,155,783 833,520,011 00 0.05
1881 51,81",000 800,782,203 00 7 00
1882 52,400,000 408,52r ,2r > 0 00 7.08
1883 53,000,000 808,287,582 00 7.41
1881 51,011,000 848,510,870 00 fl.80
1885 50,118,000 823,600,700 00 5.7(1 (
1880 57,404,000 ft'53,439,727 00 5.80
1887 58,080,000 871,403,277 00 0.83
1888 50.07J.OOO 870,2(50,075 ( 00 0.32
1889 01,280.000 887,050OoO 00 0.81
1800 02,022,250 403,080,082 00 0.48
1801 ra,075,000 802,012,447 81 0.14
1802 05,510,000 854,037,784 24 5.42
1803 00,040,000 885,810,028 78 5 70
1804 08,307,000 207,722,010 25 4.87
1805 00.878,000 818,800,075 11 4.48
180(1 ( 7UOO.OOO 820,070,200 88 4.58
1807 72,037,000 847,721,705 10 4.77
$0C93,83,835 , ] 23 5.81
Neb expenses. 333 President.
$230,004,827 00 4.08
100,047,884 00 5.40 . . . Hayes.
207,042,058 00 5.84
200,712,888 00 5.08
257,081,440 00
205,408,1:58 : 00
. Arthur.
244,120,244 00
200,220,035 00
2)2,483,188 ) 00
207,032,170 00 Cleveland.
i 207,024,801 00
, 200,288,078 00
3 818,040,710 00
* 805,773,005 85 . Harrison.
845,023,830 58
! 583,477,054 40
807,525,270 83
a50,105,208 20 , Cleveland.
852,170,440 08
805,774,159 57
$5,891,029,094 10 4.07
, This includes $8,270,842.40 of "premiums on
purchase of bonds. "
aTliis includes $17,292,802.05 of "premiums on
purchase of bonds. "
aThis includes $20,804,224.03 of "premiums on
purchase of bonds. "
. .This includes $10.401,220.01 of "premiums on
purchase of bonds. "
FISCAL YEAIl ENDING JUNE 80 , 1898.
.
QJ
-2s
H
Year. aS9 Net revenue.
-9 28
cw
fa O
1898. 74,889,000 $839,327,081 11 4.50
Net expenses. President.
$443,808,582 00 5.00 , McKinley.
BUMMAltY AND ANALYSIS 1878-1897 , INCLUSIVE.
( Made up by the compiler from annual reports
slightly varying in the total from a final of
ficial summary given above in the total ) .
Per
REVENUES. Amount. Capita.
Liquors and tobacco ,
domestic and foreign , $2,054,435,557 , 2.470
Sugar and molasses , 1878
to 1800 nt OOc 038,087,009
1801 to 1807. $110,021,802
Less bounties .000
paid 85,000,000
84,021,802
Miscellaneous receipts. . . 545,871,102 .457
Internal taxes other than
liquors and tobacco. . . . 188,400,104 .110
Income from general tar
iff , omitting liquors , to
bacco and sugar 2,573,812,070 2100
*
Total $0,030,218,184.97 5.815
EXPENDITURES.
Civil service $1,003,270,087.81 1.84
War 877,582,140.47 .74
Navy 422,830,204.05 .85
Indians. . . . . 103,005,042.80 .14
$3,000,200,870.03 $2.57
Pensions. . . . 1,802,084,508.01 1.51
Interest. . . 1,002,010,831.00 .89
$2,805,804,899.04 $2 40
$8,000,200,870.03 $2.57
2,805,804,899.04 2.40
$5,031,504,775.07 $4.07
Excess rev. " 78 to ' 03 , inc. $1,100,577,548
Deficiency , ' 04 to ' 07. inc. 155,804,184
$5,031,501,775.07
Net payment of debt 1,004,718,859.00 .84
Total. . . $0,030,218,184.07
II.
From what sources have the revenues
been derived ?
A glance at the above statement dis
closes the fact that the revenue from
liquors and tobacco averaged :
Two dollars and forty-seven cents per
head . $2.470
Small internal taxes on banks , oleomar
garine , etc . 110
|
Miscellaneous permanent receipts . 457 I
Sugar and molasses . 003
Miscellaneous duties on imports other
than liquors , tobacco and sugar . 2.100
$5.815
The excess of 84 cents per head of rev
enue above expenditures yielded $1 ,004-
713,859 surplus which was applied to the
reduction of the debt.
It will be remarked that the revenue
from sugar and molasses from 1878 to
18Q0 came to 90 cents per head. The
duties oh sugar abated nnder the McKinley -
Kinloy act , partially restored under the
Wilson act , were under the Dingley act
somewhat less than from 1878 to 1890.
Had these duties been maintained
from 1891 to 1898 at 90 cents there
would have been no deficiency in the
revenue except the war expenditures of
the present year , but on the contrary a
surplus of about one hundred and fifty
million dollars ( $150,000,000) ) to be added
to the previous reduction of debt.
It will also be remarked that the rev
enue from liquors and tobacco $2.476 ,
with the small internal revenue taxes
added .116 , making § 2.592 , covered the
normal cost of conducting the govern
ment including the cost of what is called
the new navy , leaving only interest and
pensions to be covered by revenue from
all other sources.
It will also be remarked that if twenty
years is a sufficient period on which to
base a rule the normal expenditures of
the nation are five dollars per head ( $5) )
at which rate they are less than half the
expenditures of the United Kingdom of
Great Britain and Ireland , where the
burden of national taxation in ratio to
person is much less than in any other
state or nation on the continent of Europe - .
ope where militarism and compulsory \
service in army or navy render the
masses of the people subordinate to the
military classes very much less in ratio
to the annual product.
III.
Was the revenue derived under the
Dingloy bill sufficient to meet the nor-
