The Sun.
London, England, 1864-02-19 00:00:00

SPIRIT OF THE PUBLIC JOURNALS.

TlMEs.—The Americans are beginning to look at
their financial policy in a new light. Tne Federal
House of Representatives has actually entertained
a proposal to raise by taxation a sum equivalent to
our entire revenue. It is true that the idea has not
yet taken any practical shape, and we should think
it exceedingly doubtful whether the expectations
which it implies could ever be realised, but at any
rate it marks a new conception of circumstances
and obligations. Hitherto the proceedings of the
Americans have been so strangely contrasted with
our own methods of finance that we could but look
with amazement upon the operation of a doctrine
so novel. It seems to be understood that the Fe-
deral States will require for the ordinary and ex•
traordinary expenses of their Government during
the ensuing financial year a sum of money amount
log, in our currency, to at least £180,00e,000. Tnis,
it is calculated, may cover all outgoings on account
of civil, military, and naval administration; but it
includes no provision for the interest of the na-
tional debt. That item is reckoned et £11,000,000,
though the rate of interest actually current has re-
cently been made matter of active controversy
amorg economists in this country. However, we may
assume for the purpose of our present remarks that
Mr.Clease must provide a gross sum of £190,000,000
for the requirements of the financial year. How is
all this money to be raised? Mr. Ceuta° understands
as well as Mr. Giandstone the various expedients at
tae command of a financier. It is competent to him,
as he knows, ro adopt in any proportions any or ali
of three great. courses. He may raise money by Cus-
toms, by Excise, or by an Income Tax, and he pro-
poses, i' seems, to press all these instruments into his
service. Bat there is this singularity about his prac-
tice—that, whereas he places the heaviest burdens
exectly where we should place the lightest, tie does
not by all his proposals together protess to anise any-
hing like the amount which the Government will
require. After acknowledging that £190,000,000
will be wanted, he proceeded to explain a scheme of
taxation from which he expects at the outside a pro-
duct of only £45,000,0000, thus leaving more than
three-fourths of the needful sum to be procured in
some other manner. This enormous residue, it is
unnecessary to say, he intends to borrow; so that,
in fact, the essence of his budget is a gigantic loan,
emnpletely eclipsing all other sources of revenue
Ott these principles the whole finance of America
resolves itself into a system of living on borrowed
mosey. If Mr. Chase is to borrow £145,000,000 out
of £190,000,000, there really appears very little rea-
son why he should not take the whole sum on loan
at once, and save himself and the people all the vexa-
tion of taxes. At this conjuncture, however, the
House of Representatives instructs the Committee
of Ways and Means to inquire into the expediency
of so increasing the duties on foreign and domestic
articles of luxury as to make them yield a sum of
£70,000,000 a year. If such a measure could be
successfully carried out, it would effect liitle less
than a revolution in the Federal system of finance
Hitherto, the Americans, though so prodigal in their
expenditure, have raised comparatively little by
taxation, and next to nothing by any taxes except
Customs. Last year Mr. Chase calculated on ob-
taining £14,000,000 from Customs, £25,000,000
from Excise duties, and about £6,000,000 from In-
come Tax; so that his whole regular revenue would
have amounted to some £45,000,000. But his esti
mates were not realised. Foe Customs did not yield

the produce expected from them, but the Excise
produced only some £6,000,000 or £7,000,000 in-
stead of £25,000,000 and the returns of the lucome
Tux are sti 1 unknown. Nor have these disappoint
merits induced Mr. Cease to reconsider his policy,

for he has proposed to do no more this year than
raise the sum of L 45,000,000 by the same mea ls and
in the same proportions, but; as he hopes, with more
complete success. Altogether, as we have said. he
would only raise by taxation a quarter of the re-
venue required for the needs of the State, and then
borrow all the rest. Tne scheme now suggested,

though it is silent on the vital queetion or direct
taxation, proceeds upon the principle of meeting
expenditure by taxation of some kind, and no,
mainly by loans. If carried successfully into exe-
cution, it would provide for nearly half the outgo-
ings of the year from a regular yearly income, and
would leave proportionately less to be raised by
oorrowing. In fact, it would bring the ordinary
revenue of the Federal States up to some £80.000;000
year—a reap, cteble contribution from people ac
customed to provideonly,£ls,ooo,ooo m1:16,000,000.
The question is on what. principles or by venal con-
sideretiona Mr. Chase's policy has been hitherto
recommended. It is a policy diametrically oppnaeo
to all the principles of finance recognised by modern
economists, and especially to such as are most
ardently advocated by the admirers of American in -
stitutions in this country. Protective tariffs and
ruinous Wens are its principal features, while
scercely any attempt is made to raise revenue by
direct taxation. It is of course natural to suppose
that \lr. Chase knew the temper of his countrymen,
and shaped his policy accordingly. He and his col-
leagues may have seen that an expenditure was re-
quired for the purposes of the war so large as to he
tar beyond the scope of any ordinary budget. A
people unaccustomed to taxation,and habituated to
budgets of £15,000,000 a year, could hardly be ex-
pected, perhaps, to contribute on a sudden some
£200,000,000 from their own pockets, and there was
the less reason for pressing them in this respect,
inasmuch es they enjoyed the singular reeource of
untouched public credit. America bad no national
debt, and was therefore at liberty to incur this
obligation in place of oppressing herself by burdens
intolerable at the moment. We cannot but imagine
that these were really the views which prevailed
with President Lincoln's Government, and to some
extent, indeed, we must regard them as sound. An
attempt to increase tenfold the immediate taxation
of the people would probably have produced, if not
resistance to the Government, at least opposition to
the war, and it. may well have seemed a more judi-
cious policy to draw upon the rich fund of public
credit intact and available. Bat still it is extraor-
dinary that this fund should have been absorbed
with so little hesitation, and with such very little
relief from present taxation—nor can we omit to
mention that the whole system is characterised by
some American writers, not as a makshift or ne-
ceeBity under extraordinary circumstances, but us
the expression of an admirable financial policy
absolutely transcending all systems at work in the
Old World. According to these expositions the
wealth and productiveness of the country are suc-
cessfully preserved by Mr. Cause's plan of opera-
tions, and the result will be that the nation, after
carrying on a war of incredible costliness with
scarcely a sensation of pressure, will find itself upon
the conclusion of peace, not exhausted and impove-
rished as Great Britain was in 1815, but abounding
in means and money, and able consequently to
sustain or liquidate its debt without the slightest
difficulty. If these curious doctrines contain any
truth, the new scheme will do 'tether harm than
good. We need hardly say that we regard the
measure now proposed as based on sounder views,
but between the inquiries of a committee into h
system of taxation and the actual realisation of
revenue from the taxes discussed there is a very
wide interval indeed. Moreover, it appears doubt-
ful in the extreme whether so large a sum as
£70,000,000 could ever be obtained from the
sources in question. We are not told how the
burden is to be distributed between Customs and
Inland Revenue; but, if the division is to be equal,
Customs must produce £35 000,000 a year, instead
of £14,000,000, and Excise £35,000 000, instead of
£7,000,000. Can these results ba secured, and
frem taxes on luxuries only ? We are certainly
told that the Americans are living most sump-
tuously, but the description applies principally
to the great cities of the North-Rist, and the pro-
sperity which suggests the extravagance is known
to be hollow. There is a slight foundation for so
heavy a superstructure. Sooner or later the Ame-
ricans must discover the real weight of their obli-
gations, and this resolution of the House of Repre-
sentatives indicates a serious apprehension of the
trufa and a desire to confront the difficulty. We
fear, however, that when the day of reckoning
actually arrives a tax upon luxuries will be found
utterly inadequate to meet the accumulation of
demands.

POST.—The important note addressed by Austria
and Prussia to the minor German States must have
the effect of bringing to an issue the question which
has virtually, if not ostensibly, agitated for some
time past the two sections of the Confederation. Tire
Diet has submitted to much at the hands of the
great Powers, but, it remains to be seen whether it
will allow its authority to be completely superseded.
When the majority of the representatives at Frank-
fort refused to insist on the Duke of Augusten-
burg's withdrawal from the Duchies, and rejected
the Austro-Prussian proposal for making the inva-
sion of Schleswig contingent on the non-suspension
of the Constitution of November, Austria and Prus-
sia disregarded the Federal decision, marched their
trocps through. Holstein, obliged the pretender to
leave Kiel, which he had made his head quarters,
andinvaded Schleswig on the ground of the non-
compliance of the Danish Government with the de-
mands made on it in respect to the obnoxious Con
stituti▪
on. In all this the Diet, though with no good
grace, quietly acquiesced. Schleswig having been
occupi▪
ed by the allied armies, another
blow was
directed against the authority of the Diet by the
Prussian Commander-in Chief,
Without any previ-
one communication with the Diet, and in defiance
of the protest of the Federal Commissioners, he
garrisoned the principal towns in Holstein with
Prussian troops. This, however, was an indignity
to which the majority in the Diet could not be ex-
pected to submit. Several of the minor States ad-
drPesed protssts the Couot!i; Of FTsAff)rl•

.................—.......—............----- ,
against the violation of Federal territory, aud a
committee was appointed to inquire into and repot
upon the arts complained of. Pending the decision,
however, the great Powers have now gone a 'OF
farther, and, not content-jd with occupying 11°.-
stein with their own troops have demanded the,
withdrawal of those which. Iconstitute the army c'
the Confederation, This is in effect the substance
of the note addressed by Austria and Prussia to the
v., minorassuming
i a n tPowers.roo
Federal army,p truth, .
si
they
Looking oe ol ki
gsi :halt
state
if it
that
ah t e
tShae
They
Federal o
:sae rid!:
ci to
nt s
airoheTiet
unoing that their forces constitute, in
any necessity for such a reserve. They will the
selves take care that execution is properly carries
out, and, should a reserve be subsequently deemed
onfecessary, they will take upon themselves the
demandclel
, supplying it. Stich is the nature of the r
lew made by Austria and Prussia on the ilin!°_,
thPowers, and we shall await with no little cutiosli.:
e response
.which will be given to it. Frani 1131
cisoutroset now taken by the great German Powers 1,
mode
the Duchies
.
trot one which t hey believe will find fav air in to,
eyes of the leaser Sates. Whether Aastria a
ylspaopuspisatiroteonnt that tney intend to dispose et
tulle:ants:l:mt.
hseybehsis,vbeurtestohlactecti lihoee
restore
Prussia intend to abide by the Tree. y o' 1852' erasa
the Duchies to the King of Dehrivir" r
~00n as he shalt have made certain coneessions,lcis
i,whether they intend to retain them thems. lees, I'4
clear ar that they do not propose to ii6Opt What n 3.00
regarded us the national programme, The theirWl
Powers have, however, for some time suspected 0,
intentions, and have gone so far us to orrinise inria,
sores to frustrate them. At the innienee of fialt,,,
nerenee bet wewn the Alinist ars of the respect:yr,
.I,v Governments of that kingdoms S,,xonY. iFleen
,1 urtemberg, the two Hisses, and Baden has
.40
.mmoned to agree upon a course of action intlen,
hevent of the recognition of the Duke of Aug°, the
_tiorlg being disaltowed by the other member Danish
C_ . tederai ion, or the dionemberenent of the P',oo
omfonhaerchy not being effeeted ty the finalaer fa' So
fart Duchy of Schleswig from that kingd°,l:l3.oll'
dented
as_ the States are concerned which ti, elni eon'
,eneted to accept the above-mentioned basis of
ifdr nee, no difference of opinion can subsit:en-o'ol3r
g the real objects with which that act °I r. eat.
domesticrigid
diecipiine—Federal execution!irwed'o Dot
into effect by them in Holstein. "e • toll
iatiovo....
believed that there are any who cense
_ when the Federal Commissioners
otiorr;
of
feepatched to Holstein that it waste iliteboultl
the majority of the Diet that theY73il cer
o l
were redressedadminister
t b
tan' y
btaul_ita when we notice the course which el'ell'i: with
grievancestwhkeen imdpisoasdsvibaldetstgoesavuonidderbeiwnhgichhrrilFbn_rleolatalgvrail
byat DthueeptlYnnilierlh:gilijavgli
was placed by her accidental relationship'
is o stein, with the Germanic Confederation, liAgoey,
h:s eotnpel led to counsel the evacuation of tbat• '., the
ceu,e Federal execution was an act seitfil,P wo
legitimate powers of the Diet, and Dehrrifeopciti;
obliged to accede to that advice for the sake '4: Be
herself in the right in the eyes of EiloP"" it nose
neither England nor Denmark believed that - aes'
ot seatircely
thet tintention of the Confederation simply
ra,e the province, and the German Po tie
ecolitn
arook the trouble of veiling their ulterior desigv loot
isdecent disguise, Now, however, all chdceumitior
Powers
at an end ; and, at the instance of the iled
teimt
seriousis a r i i y
of the Confederation, the Diet iS to bees
ea by
upon to direct that the Duchy wbicb Was 'untol'ezalll
virue of a ministerial act, and which ingo
aoknowledgedshall the sovereignty of the Par3iBflrrets i°
,fliabe handed over to another Priace• sideaol
uf Bavaria,
the objects with which under the Pr.eiv 9 of
meeting of the represent6l,,neceeecl.
several roifa,thae German States has been ci;een 0°
Tne
fruitful
Schleswig-Holstein question 1110 i pee he
surprise
of compicatious, that we exPerd-',fficulti
sinrrrise at the discovery of the singular " 0 re'
ch of necessity must arise, not so Mu° slag'
gar& the vac .s _
mode, but as to the right °t til'ive 0f
of the two Duane.. The nnatlitholle .. 0(11 -
Germanyo deetares that the .I)6cniee 61.700 tbe
ss oibly united, and must in any, event ne 0/004'
tame e fate. But although wrested train i't ond°'
by are at the present moment in differeuder,noti,
Holstein is in tae p session of the Conte
pr
whereas Schleswig is in the position of $ 13 era
conquered by Austria and Prussia in their ceps.sc 0°
vofo.tEuropean Powers. Tne Contederatioll :opt to
the ce in the disposal of Schleswig ; and:„e,tria sP,fl
extent of their votes in the Diet, ''''. ware "f
Holstein.ol That this difficulty has
Prussia are powerless V) determine the its weer
on
toced be 10°er
attention both of the greater end of tont °ft'
German Powers is apparent from their re ~,, tlia
I „is in order to get rid of this difficilbielloiaor
A. tria and Prussia have called upon !closireooi
Powers to withdraw the Federal reservet e-ps
cawsir-
crome po,ed of Saxon and Haeoverian ihrii; ; a
oh- Duchy of Holstein ; and it is *lir' gagge, I
t j..ct that some of the lesser States ha."' - fen'l
so the Diet the expediency of despatchi,4 5t1084.3
troops into Schleswig. suer, then ja the last? 00”
the Dano-German dispute, end it sc°aollrtoe,
seem that the despoilers of Denmark 'ild.,:posit`°-
owfrangle with each other respecting Oa° - 1'
the b00ty.„_.......--•''
.
COUNTRY MARIOTS'
..

---
MANCHESTER—DV:WV/J*l.o wlle'o",/jo
An average attendance at market, and ,"F*' leg; in, %pa
limited demand, at the currency of this daY beat%°e clubf ocit
instiraces Is per qr less money. Foreign d 6 Perrioil
declined 2d per 10011). Flour neglected, an t piste gr,
lower. Oats and oatmeal were quiet, and is e'
changed in price. Indian corn declined 65
and beans a drill sale at former rates.

dbeott
BIRMINGHANI—Tittrasp.,4,,Tish ; dal
This morning there was a fair supplY Qt
and to effect sales a reduction upon the prices to. tail.
se nnight in some cases had to be subtaitteold fo red sco
again cheaper. Oats, beans, and Pea° 61i306 to
—English wheat was Lold at 40s to 460 for
ait 0 30,,
to 43s per 36 stone for red. Barley, new Id 2.2 s qr.
40s per qr ; grinding, 24s to 280 Oats° tc; 423 13°
per 30 stone ; 18s to 245, Beans, 3°6
Peas, 36s to 42s per 36 stone.

NT—Tuvloo.
v
of the Vitae, but ery
E

BURTON
There wasa fair .it
t°t eNn ;I T a
ni 445
3;
change in prizes. t .4'2'5 tt°o 4'24
Old white wheat..4ss to 4Ss 1 Old red,Wilea 9 ..,39 0 ),9J
New do. . 44s to 47s I New do. ' .200 l'o 40
Malting barley ....35e to 38s I Oats ........ "340 t
...
Grinding d0.....28s to 32s I Beans ......
Or°
—_—
BRISTOL--TunnenAY. 0 saleoo,o
There was a fair show of wheat to-daY,
%rive rA . ". 01
slow at a decline o ls p qr. Foreign tiliiia eo
almost unsaleable.f Barlere nnaltared. in
beans nominal. Oats in limited request.

day
as
syn thereth e------ rag fl
EDINBURGH GRA.IN--FP' 11ilicb -nar
slowß e Tha e
heat
leysesladle atis Pe'. quarto under last weelc,:eii_P. 001911004
(hits m slowly, but 6d to Is per quarter adv 7.1.0ier P
large supply of wheat, Wriceo.
tija.
tt a read y sale for fine quslities at J.
Oats on tho top 6d 00'
63 p 0•
before.twpas a
Berle on the top is 6dP. . •
d. o. w. •
n. ...... .. •
..
a averageversg l.: ;ad
a-0
y Os 6d down ....... averag n°9 pi 0,
Wheat
Beans on the top 4s Od up,. ...... ..average v 5 93
Ave age Prices. 040
Barley . ............. 37s Od I Beans ........
Total Supply and Sales. „43 010 .............. ass 9d I Oats. ...... .... • ,3,
Wheat ..... -.1705 qrs ........ Sold r ~.2 (vs
8ar1ey........ 1483 qrs ........ Sold 9g2 as
Oats
.....•• 2951 qrs ........ Sold 18" re
8eane........ 292 qrs ........ Sold is 3 (1 39s Od
Flour sells as follows :—Whites, 410 Od ; elLtrss'
superfine, 3 s 01.,...22?..-'''' (d• ski,' '''4
------- log ive to
Persons who have been in the habit Well s 9 ~,i St °,,,g
borrowers of Sewing Machines will do to
,AP.Y., sevitV,
and become members of Messrs. Watts and "'_°,., 011 ~,
Machine Clubs. By so doing they will not
tooustoe 1;4'4
money they now foolishly throw away, but at. D.:e 1,,,it i'lo,
secure to themselves the posseesion of one Of 1' t;fefiotp
most celebrated sewing machines in the werl.o..essed, . `A,
formation given on application; or by letter ado.r,.. estit':ii,
a stamped envelope, to Messrs. Watts and CO Are '
buildings, Strand, London, W.C., where rileili_72.
rolled daily between 10 and 4; Saturdays, 10 u

____ ------- --- --
---.
Births. . f COO'
Mugs. —On th 7th inst., at Aldershot, the wife °
Akers, ii.E., of a daughter. the
BLoasu —On the 15th inst ,at Leeson-street, Dilbliii'
Lady Harriet Lynch Bloese, of a 50n..., Less'
MASST.--On the 15th inst., at Newar .11.011 Set
ton, Lady Lucy Massy, of a sou. he Wife °f 1.
VANDERST.A.R.-- On the 17th inst., at Bath, the
Vanthirspar, Esq., of a 801 I•
Marriages. „to'',
Aii s.„ ~,
B.A.BNErr—IVEEKs.--n the 18th WO., at D0e,04":
anghat-platie, Samuel Bariz tt, Boll',•weekoi S;pa:
Weeks eldest daughter of James georli,oviey-gr--
granddaughter of Edward Howorth,Bsq.: •""
Barnet. 04*
PO •
tiuursTrAN-POOLV.—On the 18th in st st. molls,
to
London, Francis Christian of BirraingbafilorrinS
third daughter of Joseph 'foole, B9q , °
square, London.
Deaths. pick 'late r•
, Drooic;.laatil
CAnituTEtEits.—On the 17th ins.,. at "tiler* Cd•-t
dens, Kensingt•in, L eut.-Colonei Carrot .e f ife,
2d Regt., aged 64.
CHRYSTIE —On the 16th lust., at Elio D°366 11
'
John a Chrysti-, Esq. pq ,Of 111113 fr
ill
d • Coe
iugdon Court, Herefordshire, age
CHEESE —On the 15th inst., James C6beese,
perllotlire,
HALL.—On the 16th in t., at BieloY, 0"
W. H. Hall, R.N., asged 63. of the
JOYNER.— On the 16th inst., Mr. Wt. Joyner,
lore,
office, Palt-mall, aged 41. bark ace' ;ere,
PvcLbLrEit3Rt.oThOern
wthienlia6nlth
Gioialets,
rautillo,ll..gqe., my. for ,
fordshire, aged 67.0.; 1- P.
------ AND.' a
-------------- - - --g-iDIJIAOffice i'
London : Pri.ra;,.3d and rt-Nished py 1
__ so
erotio 41
ot No. 112, Strand, Printer, o%.'irroy, .0 t 1).
Strand, ,n the- Precinct of tti ?:1040.
Mici'lleaex --Fridby, relproarl IF