"STATE OF NEW YORK, EXECUTIVE CHAMBER,
"ALBANY, _July 22, 1876_.
"DEAR MR. COX,--Your note of the 15th came several days
ago, but I have since that time been so exceptionally occupied that
I could not give any attention to my correspondence.
"I did, however, immediately direct the messages you desired to be
at once sent, and I now will answer your inquiry in respect to the
statement of Federal taxation for the year 1870, contained in my
last annual message.
"The year taken is that which ends on the 30th of June, 1870, being
most nearly identical with that in which and for which the census
statements are made.
"The statement is of taxation and not of expenditures. All the
statements in the comparative tables are of taxation. In the long
run, unfortunately, the expenditures equal the taxes. At any rate,
the comparison is a comparison of taxation.
"If you will refer to the first page of the report of the Secretary
of the Treasury for December 5, 1870, you will find the receipts for
the year ending June 30, 1870, stated as follows:
From customs (in gold) $194,538,374 44
" internal revenues 185,128,859 07
" sales of public lands 3,350,481 76
" miscellaneous sources 28,237,762 06
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Total $411,255,477 33
"To reduce the gold revenue from the customs to currency requires
the addition of the premium on gold. The gentleman to whom I
intrusted that computation made an average which fixed the premium
at 24 per cent. That is no doubt considerably below the real premium
at the times when the revenues were collected.
"The amount of the premium is $46,689,209.86. From that should be
deducted premium received on the sales of gold which form the larger
part of the 28,000,000 of receipts from miscellaneous sources, and
amount to $15,294,137.37, leaving a balance of $31,395,072.49--
$31,395,072 49
Add 411,255,477 63
----------------
$442,650,550 12
Add to that the amount collected by Postmasters 15,141,623 71
----------------
Total $457,792,173 83
"The estimate of the amount drawn from the people by taxation by the
Federal government, contained in the table to which you refer, is
made in round numbers $450,000,000.
"There can be no doubt it is below the truth.
"Very respectfully yours."