INTERNAL REVENUE

—Funds raised for government purposes in the United States by the imposition of taxes upon domestic products or activities, as distinguished from customs duties on goods imported from abroad. The system dates back to the very foundation of our government, have been inaugurated by the first Secretary of the Treasury, Alexander Hamilton. The Governe ment had a umed debts incurred by the States in the Revolutionary struggle, which they themselves were unable to meet. To discharge these obligations, for which the customs were inadequate, Hamilton proposed a tax on distilled spirits. Against the most bitter opposition he secured Congre ional approbation of a measure, 1791, imposing a tax on this product of from 11 to 30 cents _@ gallon, according to its alchoholic content. So vigorously was this tax fought by the liquor interests that the opposition finally resulted in the so-called Whiskey Rebellion. This was summarily repre ed, and the right of the Federal Government to impose such a tax was firmly established. Once the principle was accepted, it had unlimited applications. Snuff and sugar were taxed; government stamps were required to be affixed to deeds, legal documents and negotiable instruments, The laws were repealed in 1802, when the Federalists were ousted from power, but reimposed with many additions during the war of 1812, to meet the pre ing nece ities of the Government. Following the conflict, they were again repealed, and from that time to the outbreak of the Civil War, government revenue was derived. from the customs. In 1862 the office of the Commi ioner of Internal Revenue was created with an organization of inspectors and collectors forming a system which has remained in force up to the present time. During the Civil War, not only liquors and tobacco, but almost eveyr conceivable object had to bear its share of taxes for the financing of the conflict. Most of these were distinctly war taxes and were repealed by 1870. Whiskey, beer, tobacco and stamp taxes wore still retained. To these has now been added the income tax, the greatest revenue producer of ail. The Internal Revenue System is pliable and elastic. {Taxes can be raised or lowered, imposed or repealed, as the exigencies of the government require or permit. The cost of administration is only about two and one-quarter per cent of the amount collected. The Internal Revenue receipts for 1922 were $3,197,- 451,083, as contrasted with customs receipts for the same period of $356,- 443,387.