The New York Herald Newspaper, December 5, 1866, Page 9

— ‘Vata assesment upon the stockholders for an amount sufficient to make up the Joes enstained; and in cass of luse to do one or other within aS ‘tho Comptroller of She C may appoint # receiver to wind up the ~s@ffaire of the bank. Fifth—An amendment to section 50 makes it a penal nee for any person to have in his possession with in- wo ‘or utter apy false, forged or counterfeit national bank association to cause ay preeented ‘counter to be stamped with the word Sobuntertsit Bs ki a8 ® ~~ ‘The forms for these amendments and for such chances may be necesary to provide for redemption dm New York city, orin the cities of New York, Boston ‘and Philadelphia, as may be deemed moat expedient, ‘@nd to provide for the issve of circulating notes to banks that be organized in States onsupplied with bank- ti ‘are not reported; but the views expressed one those points are submitted for such action as may Psi Judged best adapted to secure the ends proposed. In conclusion I have only to s'ate that the national Eee fe now fully inaugurated and in success- The first bank was organized in June, ‘are now in active operation 1,647, with an in capital of $418,000,000, which’ ix owned stockholders, The system has the confidence + LY. pet ips orc maereney of oko * Pvatue country. It has supersedod al vpxiating Stale beating ‘and places the entire con- wee, ‘the ourrency of ntry in the hands of the a It Proved, pre itg three F ear existence, a most important auxiliary in the f Treasury Department. hh ol A system that bas grown into such magnitude in so ‘briof s time, involving interests so vast and fo vital to -evory portion of the community, demands a careful con- +gideration and deliherate action, It may not be perfect, for it was devised by men, but it embraces all the best bm prey pres of the a yr systems of tho «developed but few defects H. R HULBURD, Deputy and Acting Comptroller of the Currency. REPORT OF THE ‘COMMISSIONER OF INTERNAL REVENUE. Tanssont Derarruset, Ovrice or Internat Revenue, } ‘Wasminaron, Nov. 30, 1856, I have delayed the preparation of my gnnual report for the fiscal year 1866 somewhat past the time when Tequired by law, in order to avail mvself of tho latest returns from the officers of the several collection dis- “Cricts, and to present, so far as possible, some of the results of the law as amended by the act of July 13, ‘which mainly took effect on the Ist of August Inst. With the single exception of the relief of paraffine oi) ‘aud crude petroleum from tax by the joint resolution of May 9, 1866, the receipts of the last fiscal year were from the law as amended by the act of March, 1865, Bor tho first time, therefore, in the history of the office Who tabular statements comprised in its annual report substantially exhibit the proceeds, from various sources, of statutes existing through an entire year. Their ag- @regate amount is considerably in excess of the estimate at the date of my last report, and, as I have reason to ‘Deliove, of the estimate of others who had given thought ‘to tho subject and were most sanguine of the successful ‘operation of the law. This excess came largely from manvfactures stimulated by the opening of Southern markets, and from cotton, of which there was a greater aupply than was anticipated. The amount itself is not far short of the revenue for the two years next preced- ‘Ing, and very considerably in excess of the British reve- gue for the year 1866 from customs, excise, stamps, yy tax and post office, Indeed, the entire revenues mpire exceeded those of this office only in the ‘but they have been encouraged by the remembrance t! mot only were the current expenses of the government ved thereby, but that the national debt, incurred the payment of this enormous the preservation of the national life, was thus gra- lly wearing away. The tabular statements which 1 berewith transmit are abstracts of accounts ke; in is office, as required by png and w! it te ae tag tied tes bya ones ¢ Treasury, annually, e month of Decem- &. to lay before Congress, lo A, They are:—' @bowing the receipts by collectors es each specific ce of revenue and the amounts refunded in each col- district, State and Territory of the United States ‘the fiscal year ending June 30, 1866. Table B, collec. Gtons from msurance, railroad, canal and turnpike eompanies. Table C, monthly receipts of internal reve- Bue tax on galarics, Table D, number and value of in- ternal revenue stamps procured monthly by the Commis. Gioner, and montbly receipts from purchasers of internal Pevensie stampa, the commiasions allowed on the same, @nd the receipts from agents for ihe sale of stamps. ppg of collections of interna! revent.o wources for the year ending June 30, 1866, Table F, comparative table showing the territorial dis- ‘Cribution of internal revenue from various sources in the ‘United States. Table @, the ratio of the receipts from HE i sources to the of all collections for the 1865 and 1866. the ratio of the gross col- Nona from the several sources of revonue to the agere- collections, exclusive of a F i? ween these amounts an fom the offen ot the Beccetary of the T ‘the fact that the same reosipta are not al the books of the two oiliens on the same day herepanciee from thie sane cause will de noticed elaewhere. These amounts include drawback upon goods exported amounts refunded as erroneously assessed and col. bat are exclusive of the direct tax upon lands, ‘and the duty upon the circulation and deposita of na- ‘onal banks. jose amounts are ay me — teense $687,431 4 ~ 698,655 422,734 ‘1066.. . 798,866 614,544 RRCEIPTS FROM FPNCIAT, SOURCER, Tho amounts received from several of the moat im- portant sources of revenue are herewith presented, with @uch remarks a8 are deemed necessary :— Diviccads end addi- i 1366, tions to surplas... $1,577,010 $3,987,200 $4,181,023 Ciromiation. ... .. « 2,066,008 993, 661 990, 328 Deposits. as» 780,723 2,045 841 (2,099,695 tal... . _- 908,367 814,074 ring the year 1864 the tax upon dividends war three ~ Rgaraad while in 1866 and it was Ove per cen- m. The tax upon circalation and deposits wan increased Gor tho iast two years, The diminution of the receipe 49 due to the conversion of the State banks Into national papery) which pay the tax upon their capital, cirea- and deposils to the Treasurer of the United States, ‘Capital was first taxed by the act of June 30, 1964, ‘ RAILROADS. 1864. gacroe - 50 $927,303 , 470,81 205,304 . 606,850 847,683, 1,256, eontum, The law of June 30, ‘apon profits carried to account of any ‘ the receipts from that source are im the dividends of 1865 and 1866. Mes ere $445,206 $704,658 aanensn'ta. 623,682 061,002 The taxation of dividends of insnranes co aS oe oe £ 1 169,722 ee dur. Lo tax upon the gross receipts of preminms am! ax @eeements was one per centum for the year 1964; afver- wards it was one and one-half per centum. GALAMING OF PERSONS EMPLOYED IN THE SERVICE OF THR CNITRD #PATER oniformiy impored upon the above the rate of $600 per an- honorably discharged from 4 ipval servies, the late sattiements of nan amounts part prime mon to, but ndjodicated upon dur- 11,162,992 ‘ 16,044 578 The receipts of 1965 wore inereased by additions to the ftamp schedules under the act of 1864, and thone of 1906 @bove those of 1865 by the use of stamps tn the Staten to that time in rebellion, Daring the last year the Sin oe $1,702,462 bas boon recelved from (be male of be cont stamps, and that of $3,596,465 for stamps from I dies for matches, pe ery, eoametics, medi and other proprietary articles. The double penaity by law len grent security to it faithful o} rv. of the invalidity of an wastamped instru. the party receiving it, and to whom \t may be of uy ‘ukeig to ipalat apon the attachment of the ap. Is ts thie y upon the receiver requirements of the qrversily re anon, ment, NEW YORK HERALD, WEDNESDAY, DECEMBER 5, 1806.--TRIPLE SHEET, 1865 were but slightly by include but a very small annual list of that year. list 90, and os they i, a was mainly collected after June imoreased the receipts of the fiscal year 1806, 1864, 1865, 1806, The inerease of receipts in 185 was due tothe in- creased classes of persons subject to charge under the act of 1864; to the increase of the license duty upon several kinds of business, and to the reassessment of wholesale dealers under the same statute. The increase in 1866 arose especially from the operations of the law over that portion of the Soath from which, prior to that me, it bad been shut out by the reboliion, no censes and income. ‘The receipts for the fiscal 1864 were mainly from the annual assessments of 1863 upon the income of 1862. Receipts of 1865 were from the income of 1863, and those of 1866 largely from that of 1864. Of the collections in 1864 $6,913,884 were from in- comes taxed at five per contum, $7,930,070 at three per centum, and $75,373 at one and one-half centum, Of those of 1865 $801,941 were returi three per contum, and $133,: centum. Of the receipts in the fiscal 570,809 were at five per centum, and per centum. T have endeavored to ascertain the precise number of Persons who were assessed for an income tax in the an- nual list of 1866, but the bepersacsptly. oo) especially rt eyed received. ~ — no! 2 The country ta now divided into two hundred and forty collection districts. From ono hundred and cignty- five of them the desired returns have been roceived. Of the $39,953,440 collected in the United States up to tag reported to this birdy the several la lectore, or near -sevon per centum of the ten eee ‘was Aabte {1 thege one hundred and eighty-five districts; ‘of the persons who assessed in thene di 190,189 retu: 162,51; wed % 501,122 af ten Jess than $1,000; ‘than more than $5,000; and 81,009 of ovor $5,000, . These sums were ail in excess of $600 exempt by law from taxation, This ratio will be changed somewhat when the full returns are in, asa greater pi lon of the largest incomes are acquired in the older States, The whole amount received from the tax apon in- comes since the passage of the law of 1862, and tncluding the collections during the present flacal year, already re- ported to this office, is $164,865,018. TRON AND STREL ‘IN THE VARIOt FORMS WHICH ARR BPs- CIFICALLY NAMED IN THE Law, sion of Congress until the last wi it was very largely reduced, The increased receipta were due not more to the increase of production than to the additional number of articles made taxable and the Increase of the duties upon those previously taxed REFINED PETROLEUM AND COAL OTL, , 255,328 8,047,212 317,396 ‘petrole&m pr per gailon, and dis- tilled coal oil eight cents, until Juno 30, 1864, when the rates were respectively changed to tweuty cents and fifteen cents. The receipts from these artictes, it will be sven, are rapidly advancing, indicating thelr !argely increasing consumption, CIGARS AND CHRROOTS. en $1,255,494 1345... . 8,072,476 1866 474,438 During the year 1864 and for ten months of ear 1865 the receipts were from specific taxes, gradua! by tho diffrent values ) rae cigars. These taxes were largely advanced in 1864, and by tho xct of March 3, 1865, a uniform rate was imposed of $10 per thousand. The receipts after May 1 of that year were almost en- tirely from that tax, CURWING AND SMOKING TOBACCO, 1864, +++ $7,086,684 1565. 8,017,020 1866, 12,330,921 The (ax upon smoking tobacco was increased from 5 to 25 Cents pound in June, 1864, and to 35 in March, 1865, except upon that made exclusively of stems, which remained at 25 cen's. Fine cut chewing and plug mainly paid fifteen conta per pound, until June, 1864; after that, thirty-Qve, uuttl h, 1865, whon the tax was increased to forty cents, The production of taxable tobacco in 1 was 28,680,056 pounds; that of 1864 was 63,372,426 pounds, 056 ot which more than 10,000,000 pounds were returned in Juno, to avoid the additional duty uader the new low then shortly to take effect; that of 1865 was 36,639,020 pounds, and that of 1866, 85,748,851 pounds. Large quantities of tobacco mauu‘actared in the South before the war and during {ts progress were (brown upon the market during the past year, to the great derango- ment of trade and the embarrassment of regular m: facturers. Regulations, so far as consistent with law, were adopted by the departia*nt for tho collection of tl quired duties when this tobacco came in compe tition with that which had paid the tax, but its sale and consumption in the South were pormitted without charge. That manufactured and removed from the place of manufacture prior to September 1, 1862, was, of covree, not anywhere subject to tax, and it waa this which go serious'y disturbed the interests of manufac- turera. It has now, however, nearly, if not altogether, disay from the market, and most of the tobacco which is now consumed secures revenue to the govern- ment. I anticipate largely increased receipts from this source, FERMENTED LIQUORS. During the year 1965-'66 th barrel. The collections for ten were at the rate of sixty cents. Fa came both from it rom ed consumption and improved thoroughness in the operation of the law, 29,198,578 In 1864 the tax was twenty cents per gallon, until March 7 of that year, when it was raised to sixty conta. From |. 1864, to Je 1, 1865, it was one dollar fy ata and alverwerde two dollars Mach of the consumption of 1865 was of spirits dis- hous in anticipation of increased tar. tilled in previous yoars, morons The receipts during the several months of Al IND 5,168/260. June. the current fiscal year the rec tax upon mpirite distilied from peaches and prom chin {t appears that the total receipts from dis:illed spirits for the year from November 1, 1565, to November 1, 1506, were $37,627,595. ‘There ts more uniformity in the monthly receipts than fn the distillation of spirits—a fact which arises from the use of bonded warehouses, out of which the winks are not withdrawn until the same are wanted for ‘cousr when the tax ia paid. ‘There is probably no tax imposed by the law which ts 80 largely Traded ty those joject to its provisions as the tax upon distilled apirite, Nor is there any from the evasion of which #0 large \oss taures to the government, tunieas It be that ‘ncome. It will be conalved, however, that there has been a very considerable increase In the monthly receipts from spirits, arising, undoubtedly, from the fact that the stock which bad accomulated in tho hands of dealers haa been consumed; that the demand is now, therefore, for pro- duction which duty, and that the new law has advantages which wore wanting in the old one. MEPRNGR OF COULRCTING TRE REVEXUR ‘The different ways in which accounts of the various internal revenue oe eee tomes olen — % possible to give @ foon fement ps nn of sonuaieg and collecting the revence for the year 1866. Many expenres incurred during tue yeor ‘were not paid until after ite close, and large amounts pond ot aaa of expenses of previous years ad- Iam oar. From an examination of the allowances made to the dinbursing ofcers, the payments om account of this of- fice and the statemenis of assossors’ compensation and expenses, made by the Fifth Auditor of the Treasury, the expenses of the past fecal yoar appear to be as fol- lows: Amscaaors’ compensation and expenses: Collectors’ compenaation penses. Superintendents of exports and drawback Revenue agents... ‘al agente assigned to this ome. UC IDBPOCLOTR. «60+ Special ras cnue comm leion.. Officers and clerks tm thie bureau Stampa and cotton tags... Other incidental expenses of thin Commiasion oa wampe. collected. The percentage of expense ie ‘or Uhe previous year, because the reoeipa were largely increased without @ corresponding tncrease in the cost of collection. RECAPTS FOR THE PREMERT yO‘! TRAR. y wo eatimate with eonfidenc revenue of a country no extended as ours, enpec when it is drawn from eo many and such vario sources. The difficulty inereases when dilferent clanmes of basiness ate seriously disturbed, as they must bo, by the various influences which alwi fect them at the close of ag! ia an uneven production of taxadle article ¢ production Ia stimulated, while of others it @ retarded, or perbapa altogether des. ent of the receipts daring July, August and September, of 1864, 1806 word 1406, an ahown by the certificates of deposit which reachea this 1966, $27,079,108 38,043, $4,714,718 seven bundred and t for the —and all but oon fe Bh Rceipis from— Clothing, including boots and shoes end other ar.icles of APOHS.... se eceececeeeeesse ses $4,803,168 854,461 Cloth and ali textile or knitted fabrics made of cotton,....... 2,420,248 2,678,039 Cloth and all textile or knitted fab made of wool. 2,555,703 1,830,849 Raw cotton. 8,003,697 1,606,546 Fermented 1,226,377 1,586,002 Spirita distilied from ap; . 61,238 72,013 peaches and grapes, Spirite distilled from torials. a tions not enumerated cove, 13,161,106 Gross receipts of hg) inso: ex; an sauce, express lograp! angen 245, 308 104,345, Ineoines’ ovee $00" aad “aver Ot prea Stamps tn ail districis. tat Roos era ‘The articles named in the free list of the act of July last were exempted from tax, and after the passage of the act, or the thirteenth day of that month. Tbe re- duotion of tax upon other articles and objects of taxa- pon tion which that law provided, took effect on the firat Gay of August following. during August and im the months of The taxes which accrued ber during the same time last year. Seventy-nine of the four hundred and ey teem due havo not been re- ceived; but Iam able to indicate very noarly what sum the total receipts will reach by giving, with the Teoeipts as compared with the tho same districts last year, the total receipts from all the diatricts during September and October, 1865 : COLLECTIONS REPORTED FOR SEPTEMBRE AND OcToBER, 1805 Axe. 188, onl Cer fiona, 1808. including boota, othor'artctow of ress, $1,714,851 §3,694.S18 $9,785,186 or articles of dreas.. $1,’ Cloth and ail textile fab- ries of cotton 1,649,561 1,963,083 9,065,031 Cloth and all to ios of wool 1,059,209 1,895,008 1.965.033 Raw cotton... 1,064 2.420,713 8,898 891 Formented liquor 1,078,271 780,000 (608.603 Spirite dimilied trom pies, peaches or grape 0,200 12,681 14,316 Spurita distilled from ot @r materisin., 5,657,170 1,989,953 9,121,697 Refined petroleum OS ee cove C49,906 904,873 1,189,901 Cigars, cigarettes and che- FOO «+, «+ 662,570 481,045 667,581 Smoking and chewing to- baceo, 2.023068 = 729.421 2,083 203, 10,018 ‘1411S 18,762 82,518 1,775,449 1,904,817 716,498 "BBL WUL 0,470 ti ‘enumerated. ++ 6,404,970 6,940,243 6,735,869 ‘Total of manufactures and productions... 058 $23,966,815 $27,065,405 Gross recelpix of " rail- roads, insurance com- Panies, &o.... + 1,008,998 1,771,597 1,956,062 The tax upon boots and shoes and most wearing ap- parel not exemplod was reduced from six to two por centum. That upon cotton was increased from two conta to three conta per pound, but the receipts were loss than last year because of the accumulated product of previous years, which was at that time brought to market, The tax upon refined petroleum and coal oil has been somewhat modified in its application, the heavier oils being exempted, and thetax upon some of the lighter being reduced from twenty to ten cents per on, The duty upon low priced cigars haa been re- juced, and that.upon those of greater value increased. The gross receipta from transportation of property are no longer subject to tax. It will be observed that the Increased revenue for these two months from distilled spirits, fermented liquors and tobacco, above that re- ceived for August and September, is neatly equivalent to j the loss which resulted during the same period) from the reduction of taxes upon otner articles. Tho compensa- tion will not be conti however, and the receipts he present fiscal year will not equal by several mill of doliars the collections for the same time last year. From a careful econsidera- tion of all the facts in my possession, however, I believe that the receipts of the fiscal yeer 1867 will reach the sum of $285,000,000. CONCERNING CHANGES OF TUR Law. Too much care cannot be exercised the modifica- tions and changes of revenue laws. Thoy should he made only when required by a proper megard for the public welfare. A lax upon an article of production cannot be |, reduced or removed without affect- ing values and be meer J largely the mghts of holders orconsumers. | The amallest change will for a time work Inequalities. Alterations even in the machinery of the law are always attended with embarrassments, and new obligations ahould never be laid upon taxpayers unless positively demanded for the n protection of themselves and the revenue from fraud. Months are required by revenue officers, es- ly those remote from the central office, for learning the new requiremonts of a statute, and it cannot be expected that those whose atten- tion js not devoted to its study and administra tion should earlier ascertain all that nig tog required of violation bas believed it would be unjast, be impracticable, to administer the as it certainly wou Internal Revenue laws, changed as a have been in LT some way at every session of Congress o@ their irst enactment, without recogni: & difference in the obli gations of the ignorant and of those educated in their re- quirements It ts for th's reagon that permanence in letter as well aa in the spirit of the statutes is desirable, eo that fewer obstacles may intorfere between its in- ment and its penalty. en longer oxporience and a settled condition of the bosiness of the country sha'l have the Reve. nue laws so that they will require little or no modifica tion, will pot be urged even in extenuation, Justice will be more fully colve more nearly ite dues ee ee delinquent and the gulity to the fines, penaltics, forfoitares im prisonments of the statutes almost as invariably as to the payment of ther taxes, Until then the guilty will sometimes escape, the ignorant not unfrequently suiter ands aay taxpayers Dear more than what should be thelr distributive of the public burden. Many of the suggestions I shall make, therefore, .with reference to changes in the existing law, will look mainly to relief from those provisions whore advan to the revenue I do not believe commensurate with their inconvenieuce ‘and annoyance to the public, CHANGR OF TIME FOR THE, RETURN OF THE ANNUAL Line. ‘Yhe annoal list \ucludes the tax upon income, articles named in schedulo A (carriages, gold ‘how, billiard tablea and gold and silver pintc), and special tax upon us engaged in trade or business, Returna for this ‘ist are required from the taxpayer on or before the first Monday of May in each year, and the taxes are payable on the 36th day of June following For various reasons it seems dosirable that the roturna should be made at an earlier date, The amount of cases where rogular books ordinarily be more accurately close of the your during which it accrued. Many taxpayers, including ao large majority of those e in agrioultaral pur. suits, heve more loigure at that time for the preparation of their revurns; while many residents of ciiios, and in- Gerd of the warmer portion of the couniry generally, desire to leave their districts for porposes of business or before the annual liste under the present law can pass to the collector from the of the aasensor In such cases no little annoyanos com bay arisen, which the utmost vigilance of Tevenue officers could not tully avold. special tax ia payable on the Ist of May, on or before whieh time the party subject to it Is to register his name, calling, de., with the je assessor of his aseosmen! dint T sewseor hes afterwards to make his certificate to the ‘farsostor and Collector, and the collector usually awaits the annual list from the assessor before commencing his collections, Yet the law provides that any one who hall carry 09 any bus or 40 ny @t mentioned in the statute for the deing of which a special tax ts im |, Without payment thereof, or without producing is receipt for such payment when called upon by any internal revenue officer, aball for every such offence, be- sides being liable to the payment of tax, be ew! to im; ment or fine, Peddlers, too, en; to business without payment of thie tax and ing wach receipt, are Hable to the forfeiture of the pro which they ase oremploy, It i not kmown that oot Aw bas arisen by the too rigorous enforce mont De regarded. ' The law should not make {'# constant viols- tion a necessity. I recommend, therefore, that returos for the anoual ist, including the registry for tho tax, be required on the fires Monday of Maren in year, and thetax be made payable on the 80th day ‘April foliowing. Tew PRR CEYTCM PENALTING The addition of ton per centumn as @ penalty for gon payment of the tx on of before a certain day rometimer «revere hardship, from whieh there in no Hef even in cases of mekners or nocident. In some wtances large manufacturers, pun vrually io Payments, from tho failure ots = { shexpected absence of @ clerk, been u! ment Of several thonennde of dollara ah Emberrassment would often arise to collectors if they wore clothed with power to odd or omit the penalty ‘igcretion, and | believe that's penalty of Ove per contum oF refunal, and [nveters at the rate of twei time the tax te payable, from ite greater equity ii erm tat Tax. The epecial tax of the actof July 18, 1964, te « enbett. tute for : tax of the earier lara Por evading ite payment wuen due low provides imprisonment | Bot exceoaing two yours and a 00 of tot more than $500, or bob, Where the imprisonment ta never vinitad, and the foe i made the nominal sum of $1 oniy, it te represented to this office it Is in some ju Gicial districts, regard! see of orca that which teoma to bare ben copeidered by Congrem: as an offence worthy of specie! punishment does not bring apon delinquent even the amosot of the i 0 to make» monthly return of end the im A a3eF f Will occasion lem complaint mary. ah fo enforce the penal provisions of the stat- P-daters, —To thoes erticios which are author- 20d to peddie without payment of special tax I recom- mend the addition of fruits, vegetables, pier, cakes and confectionery when sald by persons on foot, thus pro- tecting'inany poor women and children striving to cara & live'lhood, and who, in numerous tastances, have boon subj o:ed to anxiety and cost, Whlede and Retait Dealers in Liqvor.—The law of 1862 dseriminated between the wholesale aud retail deaiors in hquors by the quantity of single sales. A Sale of three gation’ or more at one time constituted a Person a wholesale dealer, The presont statute provides an additional test, and any porkon Whoso annual rates, incladin: sales of other merchandise, excoods $25,000, is @ wholesale liquor dealer. The tax 7 & retail dealer in liquor is $25; that of a wholesaie dealer $100 or more, Many doalers whose Ageregate sales are small may occasionally well in quan- Utles of moro than three gailons, poses an addition of $75, It is diMoult fe cers to ascerta'n in such cases when such liability has ocourred, It is burdeasome for the dealer to pay the amount, The law often faila of ita legitimate purpose, and I recommend its modification by striking out the limit tn quantity, leaving only that of value or receipt. Hutchers,—Butchera are required to pay a special tax of $10, and are not revarded as dealers. The repeal of the tax upon animals +Iaughtered has removed the roason for the measurnole relief of butchers from #pecial tax, and I respectfully recommend that when their annual sales exceed the sum of $26,000, their tax should be in- creased precisely as that of dealers {s increased. Plumb-rs and Gasfiters —Thewe now pay $1 only, the same amount which is paid by retail deale 1 see no reason why they should not be taxed upon their aalex as dealers are taxed, and as wholesale dealers when thelr annual sales exceed $26,000, Equality of taxation 1s greauly in revenue laws, ‘ASBINTANT ARBEBGORA, The proper and equal compensation of assistant asser- sors has always been attended with difficulties which are still insuperable, None of thelr expenses, ox- cept for atationery, blank books and yeas. jor to the act of July last, were paid out of the public treasury. Tho neceasity tor frequent absence from home on the part the assistanta in the country district and the increase of rentals in cities, induc Congress at {ts last session to authorize the addition of $1 per day to their usual compensation when out of the towns of their residence, and such sum ag the Commissioner shall approve, dot exceeding $300 per annum for office rent, Now, as several Staten of tho Union, including most of those in the South, are not subdivided {nto towns or townships, one provision of the law cannot have universal application, and tho allowance for rent, under whatever regutations pre- scribed, produces complaint, and ts liable to many abuses, As a general rule, whatever can be fixed by statite shonid not be left to the discretion of an officer. The rent, as well aa the $1 per diem, in certain cases, was intended really for an increase of compensation. The uniform exverience of assessors and of this office Warrants me tn recommending that the desired purpore be accomplished by a sufficient and uniform increase for every day's service, without @ny reimbursement for rent. Seventy-five cents, or even $1 per diem, would add but little to the expenses of assessments, while it would avoll complaints, and perhaps insure as equable compensation as under tha present law, DISTILLED SPIRITS, Tho provisions o law bearing upon the distillation of apirits were oxsentially defective prior to the act of July. They were fosuffictent, oven in the hands of the most experienced and vigilant officers, to prevent frauds, either in large or small dist! ‘at numbers of small stills, for tho fIlicit manufac. rum from molass°s, were secreted in the garrets lors of the most populous cittes, while many of the recognized and ticensed disti‘lerios were run by night, their proprietors keeping frandulont accounts of their consumption of grain and other vegetable sub- stances, and their production of spirits and tho sale or removal thereof to bonded warehouses, In avery distillery, the daily production of which w: \ired gallons or more, asseasors were instructed n avwistant, whose duty should be to record the removals of all articies to and from th generally to #ee that all the requir were fully complied with. Collectors were urged to un- be valuable, and which the law would authorizs, to check the frauds, but without the desired success, Tha, new law has more productive power than the old one, Its punitive provimons are more numero id strivgent, and the withdrawal of the spirita from the actual and exclusive possession of their owner, immediately upon their distillation, I have no doubt will be of advantage to the government. If in times of political excitement it were practicable to appotn! men to the office of inspector for their in; corruptibility and general fitneas—moy, who lov over moro than money, rather than those who are pressed for place as a reward or an Inducement for poll- tical effort, the appointment of an inspector to every distillery inight be profitable to the government. It ro- quires a man of tried intecrity to resist the flattering temptations of a corrupt distitler, Ten thousand dollars afrottly and wickedly expended may hide the manufac ture of a thousand barrels of winoa, which should yield $100,000 for the pubite revenues. If an in«pector tas tien bis duty in a ingle instance he ts in the power haser for all subsequent transactions, becom- tant protector bis ready witness agalust the government, Untli seme sort of metre is found which, while the atill tteelf is under the locks and seals of the govern- ment, shall infallibly register the distillation for the in- spection of two or more officers, each to be a check upon the ot trust mast, more or leas, be imposed tn a #in- gle man, =I recommend, however, such modification of the law as will authorize the collectors to interchange the inspectors of the several distilleries within their dis tricts at pleasure, so that several persons may, from t me to time and at irregular intervals, have charge of each distillery; thus to some extent testing the faithfulnoas of cach other, while together they may prov: summation of frauds by the manufacturer. Tho Secretary of the Treasury wiil not understand from what I have written that I moan to depreciate the usefulness or the reputation of those who are now ploged in this important branch of the service, I only speak of the Itanility of thetr position to abose; and be- caure of the Ovcasional discovery of corruption, and the painful rumors constantly received at the department, advise how their services may be moro profitable, and the credit of the honest saved from sacrifice or suspicion. The government owes protection to ita just distillers and unieas they are saved from constant jose by the low price of iicit whiskey their business will entirely into the hands of those striving to eccumu- [ae rtaces by robbing the national Treasury.’ The amended law imposed so many new obli; upon Aistillers that it was not deemed jndicious to rigidly enfores all its provisions upom the Ist day of 4 when the same took effect, nor immediately thereater. Warehouses and cisterns of poouliar character were to be constructed ; locks and Inspectors to be and Appointed by the department Some fui time was found, indeed, to be nee , both for the manafae turers and the governt 6 law in now, however in practical and very general operation, and dlaregard of ite provmions, whether fraud can be proven or not, will bo rigorovaly dealt with. As was ant ft tions seem fora time to multiply the number of iitett Hille, seldom brought to light except apon discovery by detrctives; but the renewed watchfulness of the focal officers, and an amendment of the present law which will authorize the destruction of small stile In certain canes will, It te hoped, measurably prevent their usa, while the reclpts from aletiited spirit, now much larger than In years past, will be constantly increasing. Corron, Doring the sontinuanes of the rebellion it was of practicnole to aasewe the tax upon cotton in the bi . Ite amvemement, wherover ee anomalous, but was meonsmary. At the last f Congress no inconaiderable amount of time pent by the commitiees baving the subject tn charge in deviating a method of taxation which sbould De somewhat analogous, at least, to existing provisions jen, and which should be aafe for ile it pre ed the rights of pro duc A shippers. The plan allows the un. obstructed movement of Cote to ny collection of ita producti but permits ia re. from such district moval fn | ae of the tax, or under the perm! the assessor upon the execution of such transportation bonds or other payment recurity, and in mvcordance with such regulaone an rholl be preseribed by the Commissioner of Internal Rev- enus, subject to the approval of the Secretary of the Treasury, Ithaw not been deemed prncienblo 9 pee. aerive other secority than transportation bonds, other has been proposed to the office. The regniations of the department, aroed at the time the law took effect, provided, ax do those covering the shipment of distilled epirite, tobacco and e that the transportation bond should be given to the collector of the distret in which the permit # to be imued and shen spe cotton ie produced. The experieoce of reve- nue offers and taxpayers ailke had proved this practice wo be ordinarily the most convenient and desirable. It mon becaine apparent, however, that the lines of te cllect.oo Cucricts, established withoat reward to the channel of trade, were abutting out whole counties from their pavural markety for cotton and imposing bar- dos upon eal planvere Oowarranted by the advantage to the reven.e, and eo largely ttnpeding shipmenta too, aso be a source of annoyance to wers, tramsporia tion companies and factors, I ‘large section of country waa interested in the salyect, for when the whole business and trade of « community ie mainiy based upd ingle product it cannot be otherwise than that ite growth, movement and ania rbvuld induce competition and rivairy between different localities. To remedy the existing avila |} wae at firet to request the Prenident to exercise the authority with which be t# clothed by law to change the lines of the collection districts Sach change, however, eoald for nish only partial relief, as each collection Aintetet moat be confined to & #ingl# Blete, and an alteration of ‘he Nines so aa to include leew than all (he eottom grow! States in a eingle dmirict woud only ereain new eoure« of compiaint, of make the operations of the law appar ently more arbitrary and unequal. It waa for (hit reamem and the Ataposition prevalling among all the oears of the department lo remove, © far as comainier th the law aad the protection of the Jee to the ord 04 at im Oevober laat 4 These, Wie be Loe plan recommended byt + Congres, giving disor of the Treasary end the an upon al! mation: to wineh they 4, 1% addition to the former and #\ibeut tow @ conening bond to be given in the ving inetend of the oh the te mn fof emion ender thi or Hit Of UDO asremor, 7 may cow be given Uy the bolder on the fac niton wetghed end marked by the powers ment Ofer 1m eke 4iettet, 6 the Chore ad the party it nteront From ip ormanon reestved from various eoursse and AiToront porns in (he Hour Lam happy to report thet the proper end conten! paneeste on! Of Lan Spee oot. ton seema no* lo require few of ony changes ouner of bond upon the gn ra (hewmen | Maren & 1 previews ew =F eg Gun om es eam eo 81) bom. owe ‘= frand when their full number was returned to the asses for, ' ities of tobacco, and the varying of the conntey, ‘eed a chance at the last mssion of Congr the which I believe neither the mannt, turers nor the revenue officers are fully satisfied On « t4%, the heh is pot ad what a ad 8 and not oves $13, market value is over $12 - r centum ad % Pell be obsory, 24 1 there were cigara ot the be subject to the ape 0 tax of $3, making $7, lea.” or the rame he would ree? per thousand No advant. but the government from $15, and as a consequence the’? are BO tus boars ry Reavy, oo, wad he markot ratae, i very considernbiy above $15, wvernment the’ major part of the exesss watit the value ts $20 moro. There ts very great difficulty, too,.im deters! the ‘market value.” Upon other manufactures satjeet to an’ ad valorem tax tho basis of taxation ia by faw the ‘teal salou! made by tho manofacturer. It is claimed (het cigare aro for more and sometimes for leas (van thelr “market value.’’ On the other band, it is certainiy utterly impracticable for asmatant assessors wu tod with the prices and qualities of cigars to what that market value ta, and there follow therefore number- leas frauds and great Leto d of axsenement. So mmet of the tax as isad valorem should be levied upon the excons above $12, and it should not be upem the market value, but upou the value as estimated by acinal salon. In this connection I would also recommend, if the tax {9 to continue to be! estimated by reference’ to value, that the iy of removing cigars in bond be with- drawn, With exoaption of cl af) articles in bond uoder the interna! revenue nrount of antortained by use of the le, the hydrometer or the gunging rod. When cigars aro placed in bond, 1t becomes necessary for 4 value to be Placed upou them, and as the system under which bowded warehouses have been establ! did not contempiate the emp! 1 of competent appraisers, the result is constant faction and complaint. Wore cigars of domestic manufacture exported in eich quantities as to be an important element in our foroiqn trade, it would doubtless bo well to adapt the bonded system In such wise as to remedy the evil; but since the 80th day of June, 1964, when a drawbac! allowed upon ct the'whole nurnber of cigars @ has boon but a fraction over 260,000, upon which was but $2,686. In view of this smalt amount of foreign trade, 1 would be far better to allow cigars to be exported for the benefit of drawback, than to make the noedod change in the bonded system, Should the tax be made purely specific, as under the act of March 3, 1865, no difficulty will arise from con- tinuing the practice of bonding. SPOTS OF TORPENTINE. The tax upon this article i# no inconaiderable portion of its value, A large part of that whieh ix manufactured is for exportation, and the formalities of ehipping for the beneft of drawback, and the procarement of evidence that the tax bas been paid to collectors of interior dis: tr ero oftentimes annoying and burdeusome. The nufacture and exportation should be encouraged in- stend of retarded, I know of no reason why the same facilitios should not be extended to persona eugn ed tn this business as in that of the manufacture 0! topacco oF tho refining of coal oil, and T recommend that they be mao subject to all the provisions of law in rojation to bonds, warehouses and drawbacks to which coal oil dis- Ullers are subject, (TED TATRA DISTRICT ATTORNEY! It tw the duty of the attorneys of the sovern! judd districts of the United Staten to report to the Solicit tho Treasury, from time to time, the commencomont of any suit by them in which the United States is a party, whether for fine, penalty or forfeiture, and to keep him jad of proceedings in the same and thotr final dispo- sition, Most of the statutes relating to this subject were enacted wher no internal revenue laws were in force, Undor the revenue laws it fs made the duty of the col lectors of the several districts to ite for the recov. ery of npy “ato or sums which may be forfeited, and they are generally regarded in the statutes and in prac tice aa the prosecuting ofticers of the revenue sary They make their reports to this office, but when the aut is placed in the hands of the law officers of the govern- iment their obligations are practically ended. The Comminsioner of Internal revenue, under auch Togulations as the Secretary of the Treasury may pre- scribe, ix authorized and empowered to compromise any case arising under the internal rovertue laws, whoiher pending in court or otherwise. He is charged, too, by the law, with the preparation of all instructions, regi lations and directions relating to the assessment and collection of the internal revenue taxes. It ts not my dosire that more responsibility should be devolved npon this ofice, or more authority be given to i than what seems to be demanded by the best interests of the department; but when sults are commencnd at the instance of the commissioner through the colletor, and may be by him comprom:sed, ft would seam appropriate Uvat the several district attorneys should be required to make to bim the same reporte which they are now re- quired to make to the Solicitor of the Treasnry, end that he be authorized to give instructions t9 such officers durhag the progress of the causes, ‘Tho evident propriety of this bas established Ite prac- tice on the part of the Solicitor of the Treasury and them attorneys in the most important districts, at least so far as regards the conduct of these mutts, but that (his ofce should by iaw be entitied to have, and should have, in Ita possesion as much information and author ty rotative to proceedings In the courts in its interest as It has in the amsoasment and collection of tazes, I do not suppore can be juestioned. Uniformity aad thorough. ness cannot bly otherwise be secured. Now that « solicitor in authorized and employed in this office, it i no more than appropriate that a docket should be kept ia it of all the Internal revenue suite the country, and that it should have open, tte flee, Umer accessible for reference, copies of all ii Judicial orders and decimons ta reference to: internal rovenue laws or their a tatration. T believe it advisable also that the Commiaioner should be charged with the custody of al! real extate purchased for tbe United At rales upon distraint or rocens from court, in euita under the wa; th ition thereto twenty the market value thereof, of this law that if value of $16 they would the ad valorem tar chang proposed wit to the conduct of suite, and e knowledge of al! the circumstances attending the purchase and of the results of the Investigation of titles at that time must often prove of advantage in the nale. STAMP DUTING In my last annual report | referred to the decisions of the courts of several Mates in relation to the conatitutionaltty of #o mach of the law aa requires the une of stamps upon writs or echer process by ‘which waite are commenced In @ court of record. As none but a party to sech suit ean carry the question to the bighest appellate court, it is uncertain when a final and author. Native decision will be reached. I cannot bel that the legal objections to the daty are woll taken admit the propriety of exempting such r ith fow exceptions, because of other erations. It Is ordinarily those who are aggrieved who seek the intervention Judicial tribunais, and application (o them for coon injary \ person and estate should be wi . No stampa aro now required wpoo aM@davite tm legat procesdings. It t# claimed that al! procesdings are ign which are not illegal, and it 16 practically \inposaitle to limit the «xemption to alfdavite for use im procesdings in courta, The strate who subscribes the jurat has uanally no interevt im its validity, aod a certain efda- ite not well desribed are exompt, it follows that there generat babit of failure wo atlach slamps lo aa: davita 1 Cully recommend that all adida expressly relieved alow of real astate are taxed through the one of stamps upon deeds of conveyance Mortgages for the sreanty yinent of any sutn exoeediog $100 pay duty in the same manner and to the tame @xieut a eoaves je be where property be eel Joet to mortgage, the samp apon te of convey. ance should be devermined by the value of the premises unineutmbered, value being ascertained by adding the amount pald for the equity of sedomptien to the bem conveyances should be meanared by Of the value Of the property above the Incumbrance Revenue stamps are required apon ali deeds oF other ron a the case before referred to, by the Kugtioh heir decisions upon similar Isevegs in the contrmaiory inh statutes, donde slone of pen exist. jig titles, either'tn law of equity, aod conveying wo a4- Hiowal monetary interest, not being really of property sold, bare not been subjected to stamp duty, Tha office has no power, nor dors ft undertake, te wijurt the conficting rights t property of @:tereat partion, determining, an it Coes, only the stairs of the eOveTO Ment spre lbe'remente employed for ia commer. ance, In tang inatences the property covered by ibe dooda \a of great value, add ik senme bat just thet the the ations of 6!) persoms, at least in lutare convey. ances, could be clearly deGned ins proper amendment to the wiatute, A power of attorney to convey real eatate te snnjeet to a mamp doty of $1. A like lowtrament for any other purpose than that mentioned in (he elatete requires owiy 6 rtamp of the valve of Olly conta Le held (hat whee « warrant of greeral antherty tn reek terme that t may be wees for the conveyance of realy We thous pay tbe eames daly aw te reyoired of om er press power for \hat purpose If it were ntherwiee 00 special © aerant would be employed The reyoired (ax thrvld be an clearly stated ae pomtbie tn tbe elemp mheiala Weel, ond as whatever coeveysnee ie meade under & power of attorney for that porpows i tm bject te the mxme daty as ie Otber cones, | seromnmnen’ Unet the tax upon the power be reload to 6tty the rollector of the propor @iaines vw Prvinent apes the payment of & par prive of the approp farnpe, Woge ber wh Che inter fat, in certaln canes, fre ston the penal ‘oman canes, fi lots OF DS penalty woreenoms vy wmv ere Peondlg Could te eately pratemed Wnqaecy, ead that its payment Berwld bw mon ot represent og etowens W the lente pd ‘oct we Oared. — nena et ne ee lic@nse oF payment of epocte! far, 4 aiore uniform om servance of the law would be secured without uadee boraship apom ta m™ Such suthoriiy wootd ef certainly be Hable to abuse tf it conid only be exerctaad for violations, after nal notice of hability, REDUCING THY NUMURK OF TAXAMLE ANTIOLIR, Prequming that the uoceasitioy of the Treasury wil allow Lhe gredual Feduction of taxes, 1 wou'd exp: my beltol that in BO OLher way can the same measure relief be granted, boh lo the public and to revenue officers, ax a the reduction of the number of taxavle ticks, The ad valorem tax of five per centum poe nisactures “not olherwise provided for,’ added to the upon those specially named in various parts of the law, is becoming @ source of irritation and oppress: Taxation is the rule, bat, a# early as practicable, shoul be made the excopilon. The sources of revenue. which Ought to be fow, may be counted by hundreds Produc tion should be encouraged, ag it {# the foundation of ta G\vidual and national wealth. Whatever constitutes am tnent tn the manufacture of another anda tmxaxble 'o should itxelf be exempt from tax. pone . f aregeas alone be Wonkd be asseased, and hocessity, It ls wiker, too, to levy @ large Upon & fow articles than a amail tax upon everythi It ia lose expousive and annoying. Experience is Seathing this lesson, which we might have leareed the older nations ‘Kngiand and France, alike, dertve almost their entire exeio tax from (our or five speeiied articles. It may not be practicable for us immedineiy to secure from #0 fow somrcas the large amount which Bow require Lbrough indirect taxation, bub ud tome ‘ot a8 Congress shall determine should be meade to thelist of those oxempted as rapidly as the amennt be derived from such taxation can bo safely reduced, ‘The collection of direc} tates 0 th which were taxes in the States tel, paurrection. Int ie U year and thereafter, unti) under art Virginin..... North Caroling South Carolina Georgia Florida, Louiwana Toxaa., Tent tal In addition to the dixbumements sioners for South Carolina as stated abo pended $10,606 in proseciting the surveys vited to the United Statos, and $8,810 for the of achools established in accordance with. I od by the President September 10, 1 for the ueation of colored and indigent white children ta Holena pariah, Son'h Carolina, The doath of one of the Texas Comm! re occurred, has inade tt impracticable to this tine, a complete report of the commiaslon in that State, No colleotigna whatever have been made tn ‘The reports Of the Arkausas and Minsientppi sicners have not been received, although the sionere for the former Siate have advised me that thet roport bas been forwarded by mail, The authority conferred upon the Se: Treasury by the act of July last, to suspend tie fu collection of the direct tax Ras been exercised, but further legislation may be pm to affnot the mirpose of Congress in this bebalf. o States lately te Inaurrection are not now authorized to amume amount apportioned to them respectively, BOF Ro m: of tho Fame as now remains unpaid. If 1 wero tn that #uch assumption might follow the postponement the collection of the tax, authonty for it should ranted by amendment of the law. There seems to AHO UrKORL reason for euch postponement, If, clowe, the collection thus interrupted and delayed It would have been much easier to completed the collection before suapension, when officers were in commission and on active duty, when tho entire machinery of was in full operation, thao work after a vacation of nearly eightoem mothe, Nor can it be supposed that Congress de» wigned that the direct tax commissions, with 1 fall cleriea: force were tobe kept in session dering this period, linmediately after the orter of suspension was therefore, and as a pretiminary wtep to ths com sts directions were went to the several pre ull and final aecounte of all their proceedings. 3 Alabama i as bted heve tbo uL The Commissouers for North (arolina were the Gres te comply with these directions Their accounts have beeg rendered to this office, accompanied by their which have been accepted, to take effact oa ber. The ncoornts of other commissions ry mianiona in States whore males have Such duties In the adjustment of aa har private righ, ar nove te pe | by the Comm iaioners direct tat, may ‘ot upon some officer or offlorts of the Tronaury in ity of Washington, the parties tn interest allowed, under the direction of much officer, to take donce in the several States. This done, no sity will remain for « continuance in office of several commiasions, with the single exception of Bouth Carolina In that “ate ands purchased United Staten at auction sales for tares have wold to purchasers on a credit of several years, apeotal duties bave been imposed upon the Hoard cheb try 16, 1866, relating especially to the reed its military accounts with the Upon the refusal of that Mate, however, during the fiacal year to authorise the payment of the tat, the tarnal Revenue officers of the district were Inetracted proceed with (n agement and collection under power conferred pon them by section forty enven of net of June 20, 1664 The amowment upon the lands i (om meue onthe bee raeeck tae thot sofleations af tae tax will very shortap The position of Wort Virginia with reference to direct tax law lea pooner one, The Virginia of $497,600 63 ae made before West was created aus of s portion of aes Saat, EO direct tax comininstoners have prom uted their labore Virginia (n conformity with the act of 1861, West rine hae pot bees euthorived to saume her - theet, por, indeod, bar ie amownt bean 4 mined. I officers and te Hepresentatives in } boanchee of Congress have expremmed ther reetines ome! (her obligations shegever they are etal ‘hed The apportionment shad be w of Compress at i pert seedos, amd the Vilege of eerumption by the Huate be @ wie — recrmae TAR That portion of the law of 1666 whieh relates to | wae but aligttly by the met pannet Variowr by the temproving bat he Nene sus Sohivelico bs tap eietenens enpenan tiene of the pummage of the Crm tow ternal tar cpon commeditens, the tnereaee of Auty, ant the deprecescn of the curreney, have an Atnowt Gal verse) at emer im prone, FM aadly | pame resem now etiea fot the lntronas utabe emowet fiempiion whish wh fret moored say eemmpiom over show id wbte change be made thers shegit bee Perding amenderat t (nat mortem @ the tow (Ly the (ar wpoe erianer ol persons emgéoyed ih the eam vine of the @mecrel gor ernment ‘The prement income law exytrae by Memitation te 157% CoRR EO TATION OF Oe Law Verone amendments, im etdivep to ehet I have ER, mn perms im tier Ve make Cheer pownrs whal 4 more or leet invgived and dowtare! tq erveral parts of the low, bat can be more Peliy ated mabiatmonsors’ y the attention « sopraprions cee miiewe A ong rom When © FeveRes bn! be before Sty thaw Wihie Ube proper limila of Unis re al ‘The imanense revemne of the Indl fecal pra: wey a