For the actual entiduct of the war these taxes came too late to be available, but in the settling up of accounts they proved of great assistance. The Seen tart' of the Treasury was unwilling to part with then) Wholly. find advocated the reten tion of a part of the excise system, in order to meet any eni•rgeney might arise. Con gress, however, by act of D....ember 23, 1$17, abol ished these taxes, and no further resort was had to internal taxation until the Civil \Var.
When the great struggle opened it was gen erally believed that the war would soon be termi nated, and that the expense, of the contest could be entirely proN bled by loans. in l$1•. there was a delay in the creation of new snurees of revenue. .\ direct tax of $211.000.000 was levied on the States act of 5. 1$61, but it was not until duly 1. 1$02, that an act was passed to raise any considerable revenue front internal taxation. The law embraced almost evyry con object of taxation. There were taxes on liquors of all kinds, license taxes neon mer chant., taxes on all manufactured articles, nn million sales. carriages, ya•lits, the gross receipts of railroads and other transportation companies. on the dividends of hank.. trust, savings and insurance companies, on advert i-ing, fin incnim over S 600. rat and stamp taxes upon bills of exeltange and other na rea nt papers. 11 took some time to establish the machinery neeessary to the proper adminis tration of this system of taxation; it produced in the fiscal year 1S63 only $37.040,7$7. though its advocates bad ant ieipanA a revenue of ;tint), non.ono. In the following fiscal year these taxes produced $1 n9.(Ino.olio. wit limit any in rates. The demand for inereas•d revenue led, .Tune 30. I564. to increased rates. New of taxation were diseovered, and rates were con siderably increased upon articles already taxed. On manufactured products generally the rate chang•d 3 to 5 per cent., \011ie On specific article, it was doubled. (In liquors tate. rose ft. fit 00 rent, per gallon, under the law of March 7, ISO', to .T;1..740 and $2, while the maximum rate un tobacco rose from $1.50 per thousand to $10 per thousand. the latter rate applying to cigars valued at $115 per thousand. The rrtrutu rose itt fi,v;11 veal' I Sl5 to $2119,0010100, hilt it M:IS not ill (111).A. ;Ili jell: I% Idyll were so •xtia‘agatitly taxed that the increased rm-enue was ,oust eon spietions. Indeed, the product of the tax on dis tilled fell from t9 to $1$.731. while that of the tobacco taxes 1-0.4• only front $$.592,1198 to $11.101,373. .1 further in crease of rates was n tilt by an at (it- march 3, and the fiscal year IstItIt with tevinues of„ $309,226.$13 showed the high-water marl: .41 in
ternal revenue receipts.
The increase of revenue resulting from these several acts teas rapid. and the annual deficit pew relatively smaller, a, compared N‘ ith TeVe allholIgh it increased absolutely as the war progressed. I.:ven more important, perhaps, than the ?ethal revenue reeeiued was the improvement in public credit, whielt resulted front t use riots t ifort. to place the rev. lines on :I t•o111111 bask. The last act, NV11111. Faking rates, eolit•ln• plated their speedy reduction, and provided for the appointment of a revenue commissioner charged with the duty of studying the whole revenue system and p•opr-ing modifica tions. Extraordinary military expenditures were no longer required, but the gineral 44 na tional expenditure Was Nastly greater than before the war. The abolition of internal-revenue taxa tion was not thought of, hut a 11.(Inetioll of the horden and of ,4111e 4.f the more vt xa lions taxes was generally demanded. Ity a series of acts in the genes ISI;(;. 1$117, and 1$0$ many taxes 111111 Many diminished. It was estimated that would he taken frOtl• the l'eVelnle, lint the actual (11111111111ton Was less than The greater productivity of moderate rates \vas amply onstrated. In the ease of distilled spirits a rate of 50 cents a g..111011, enacted duly 20, Isfs, prndneed in the fiscal year 1$70 a revenue of \Chile the IMIX111111111 leVellli• under the $2 rate in l'W47 had 14(.4.1) $33.512.9.11, In 1$70 taxes still remained on spirits, to baeen. fermented liquors. gross receipts. licenses. incomes, legacies, successions, gas, stamp., and some few other articles. The inennw tax, with+ in 1$70 1 ad produced $37.775.S73, was aban doned in 1ti72. Few changes have since heen math.. The tax on spirits was rai-wil In 90 cents in l$75, hut elsewhere. especially on Iohn•co, there was a reduction of rat I s, and all stamp taxes ceased in IRS:3. like \\ illiam D. Kelly urged the abolition of all in ternal taxes. this plan did not secure any large following, the sentiment in favor of taxing liquor and tobacco, the main supports of the internal Tflentte, being well-nigh universal. The experi ence of recent. years Ims. moreover, firmly demon strated in the minds of the people that suelt taxa tion of the internal resources of the nation is an indispensable element in any revenue system, since it is capable of adjusting itself to the needs of a sudden emergeney.