efits have
as yet been reaped.

In fulfillment of what I deem my constitutional duty, but with little
hope that I can make valuable contribution to this vexed question,
I shall proceed to intimate briefly my own views in relation to it.

Upon the showing of our financial condition at the close of the last
fiscal year, I felt justified in recommending to Congress the abolition
of all internal revenue taxes except those upon tobacco in its various
forms and upon distilled spirits and fermented liquors, and except also
the special tax upon the manufacturers of and dealers in such articles.

I venture now to suggest that unless it shall be ascertained that the
probable expenditures of the Government for the coming year have been
underestimated all internal taxes save those which relate to distilled
spirits can be prudently abrogated.

Such a course, if accompanied by a simplification of the machinery of
collection, which would then be easy of accomplishment, might reasonably
be expected to result in diminishing the cost of such collection by at
least $2,500,000 and in the retirement from office of from 1,500 to
2,000 persons.

The system of excise duties has never commended itself to the favor of
the American people, and has never been resorted to except for supplying
deficiencies in the Treasury when, by reason of special exigencies,
the duties on imports have proved inadequate for the needs of the
Government. The sentiment of the country doubtless demands that the
present excise tax shall be abolished as soon as such a course can be
safely pursued.

It seems to me, however, that, for various reasons, so sweeping a
measure as the total abolition of internal taxes would for the present
be an unwise step.

Two of these reasons are deserving of special mention:

First. It is by no means clear that even if the existing system of
duties on imports is continued without modification those duties alone
will yield sufficient revenue for all the needs of the Government.
It is estimated that $100,000,000 will be required for pensions during
the coming year, and it may well be doubted whether the maximum annual
demand for that object has yet been reached. Uncertainty upon this
question would alone justify, in my judgment, the retention for the
present of that portion of the system of internal revenue which is
least objectionable to the people.

Second. A total abolition of excise taxes would almost inevitably prove
a serio