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

SPIRIT OF THE PUBLIC JOURNALS.

TIMEs.--.-The Americans are beginning to look a,
their financial policy in a new light. Toe 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
end obligations. Hitherto the proceedings of the
Americans have been so strangely contrasted with
our own methods of finance that we could but look
with am ,zement 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
eraordinary expenses of their G tvernment during
the ensuing financial year a sum of money amount
ing, in our currency, to at least £180,000,000. T
it is calculated, may cover all outgoings on account
of civil, military, and naval administration ; but tt
includes no provision for the interest of the na-
tioatil 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
atnorg economists in this country. However, we may
assume for the purpose of our present remarks that
Mr.Cnase must provide a gross sum of £190,000,000
for the requirements of the financial year. How is
all this money to be raised P Mr. Chase understands
as well as Mr. Gtandstone the various expedients at
the command ef a financier. It is competent to him,
as he knows, to adopt in any proportions any or an
of three great courses. He may raise money by Cus-
toms, by Excise, or by an Income Tax, and he pro-
poses, it seems, to press all these instruments into nis
service. But there is this singularity about his prac-
tice—that, whereas he places the heaviest burdens
exect.ly where we should place the lightest, he does
not by all his proposals together profess to raise any
thing like the amount which the Government wit'
require. After acknowledging that £190,000,000
will be wanted, he proceeded to explain a actietne 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 needlul sum to be procured in
some other manner. This enormous residue, it is
unnecessary to say, he intends to burrow ; so that,
in fact, the essence of his budget is a gigantic loan,
completely eclipsing. all other sources of revenue
On these principles the whole finance of America
reso;ves itself into a system of living on borrowed
money, It Mr. Chase is te borrow £145,000,000 cut
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 tales. At this conjuncture, however, the
House of Representatives instructs the Committee
of Ways and Means to inquire into the expediency
ot 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 little less
than a revolution in the Federal system of finance.
Hit herto, the Americans, though so prodigal in their
expenditure, have raised comparatively little by
taxation, and next to nothing by any taxes except
Custome. Last year Mr. Chase calculated on ob-
taining £14,000,000 from Customs, £25,000,000
from Excise duties, and about £6,000,')00 from la-
come Tax; so that his whole regular revenue would
have amounted to some £45,000,000. But his esti-
mates were not realised. l'he 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 lecome
Tax are sti 1 unknown. Nor have these disappoint
ments induced Mr. Cease to reconsider his policy.
for he has proposed to do no more this year thee
raise the sum of £45,000,000 by the same meats and
in the same proportions, bat, as be hopes, with more
complete success. Altoget her, as we have said. he
would only raise by taxation a quartet of' the re-
yeeue quired for the needs of the State, and then
borrow alt the rest. The Imbeme now suggested,
hough it is silent on the vital question or direct
taxation, proceeds upon the principle of meeting
expenditure by taxation of some kind, and no(
mainly by loans. If carried successtuny into exe-
cution, it would provide for nearly half ttre outgo-
ings of the year from a re gutar yearly income, and
would Leave proportionately less to be raised by
norrowing. In fact, it would bring the ordinary
revenue oft he Federal States up to some £BO 000:000
a year—a resp:ctable contribution from people ac-
customed to provideon ly £15,000,000 er£16,000,000.
The question is on what principles or by wrest con
siderations Mr Chase's policy has been hitherto
recommended. It is a policy diametrically oppose,
ro all the principles of finance recognised by modern
economists, and especially to such as are most
ardently advocated by the admirers of Americen in-
stitutions in this country. Protective teriffs end
ruinous loans are its principal features, white
scarcely any attempt is made to raise revenue by
direct taxation. It is of course uaturel to supp ete
that Mr. Chase knew the temper of nis countrymen.
and shaped his policy accordingly. He and his coi-
leagues may have seen that an expenditure was re
quired for the purposes of toe war so large as to be
tar beyond the scope of any ordinary budget. A
people unaccustomed to taxation, acound habituited to
ardty be ex-
budgets of £15,000,000 a year, ld h
oected, perhaps, to contribute on a sudeen sou e
£200,000,000 from their own porlets, and there was
the less reason for pressing them in this respec.
inasmuch as they enjoyed the singular resource o
untouched public credit. America :.ad no netiona:
debt, and was therefore at liberty to incur ttls
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. Ao
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 makehift or ne-
cessity under extraordinary circumstances, but as
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. Chase's plan of opera-
tions, and the result will be that the nation, after
carrying on a war of incredible costliness with
scarcely &sensation of pressure, will find itself upon
the conclusion of peace, not exhausted and impove-
rished tis Great Britain was in 1815, but abounding
in means and money, and able consequently to
eietair or liquidate its debt without the slightest
officulty. If these curious doctrines contain any
ruth, the new scheme will do leather harm that,
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 e
!system of taxation and the actual realisation of
revenue from the taxes discussed there is a very
wide interval indeed. Moreover, it appears doubt•
tut in the extreme whether so large a sum as
£70,000,000 could ever be obtained from the
.ources in question. We 'are not told bow toe
harden is to be distributed between Customs and
Inland Revenue; but, if the division is to be equal.
Customs must produce £35 eOO,OOO a year, instead
of £14,000,000, and Excise £35,000 000, instead ot
£7.000,000. Can these results be secured, and
from taxes on luxuries only P We are certainly
told that the Americans are living most sump-
tuously, but the description applies principally
to the great cities of' the Nor h-E tst, and the pro
sperity which suggests the extravagance is known
to be hollow. There is a slight foundation for so
heavy a suoerstruc:ure. Sooner or later the Ame-
ricans must discover the re al weight of their uteri-
getions, and this resolution of the House of It,t pre-
sentatives indicates a serious apprehension of the
irute and a desire to confront the cl.ffieulty. We
fear, however, that when the day of reckoning
actually arrives a tax upon luxuries will be found
utterly inadequate to meet the accumulation ot
demands.
timhepomritnaonrt
Gnoe,remaadndsreteasteeds
mbyusAtuhstarvise
—The
and Prussia
the effect. of bringing to an issue the States
Co which
has virtually, if not ostensibly, agitateduesi forn souse
time past the two sections of the Confederation. rrt"
Diet has submitted to touch at the hands of the
great Powers, but it remains to be whether it
l seen
will allow its authority to bc., p oled.
When the majority of the representatives'eompetelysuti;eFrsrank-
i sten.
Frank-
tort refused to insist On the eke of Aug, u _
burg's withdrawal
from the Duchies, and rejected
the Austro-Prus
sian proposal for making the inva-
sion "
_ of Schleswig contingent on the non-suspension
othe Constitution of November, Austria and Prus-
-Bif
disregarded the Federal decision, marched their
troops through Holstein, obliged the pretender to
leave Kiel, which he had made his head quarters,
and ineeded Schleswig on the ground of toe non-
compliance of the Danish Government with the do.
mends made on it in respt et, to the obnoxious Con
stie.ution. In all this the Diet, though with no good
grace, quietly acquiesced. Schleswig having been
occupied by the allied armies, another blow was
directed against the authority of the Diet by the
Prussian Commander-in Chief. Without any previ-
ous 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 mej9rity in the Diet could not be eX-
pected to submit. Several of the minor States ad-
dressed their protests to the Council of Frankfort

----'-----".-F-..--.'.."--
nst the violation of Federal territory, end 5
committee was :appointed to inquire into and yet
(woo the -,cts cornpleined of. Pending the decision,
nowever, the great Powers have now gone a ste
farther, and, not content-Al with °couling Bob
stein with their own troops, have demanded lbe;
with of those which constitute the gig °_,,`
the Confederation. This is in effect the substall!
of the note addressed by Austria and Prussia to thl
minor Powers. Looking oil the Salon and fiati°:
veriaa troops in the light of a Federal reserve, aph:
assuming that their forces constitute, iti truth' t t.
Federal army, they state that there is no I ng;
,ny necessity for such a reserve. They Will the•d.
etves take
score that execution is properly seemed
oat,and, should a reserve be subsequently lc
necessary,
IfsaPPlYing it. Sach is the nature of the be
1 .o
1 ow made by Austria and Prussia on the to
pi
n evreersBp' Ottilse we
h tsch; utieslti
will
: From the
course now taken by ti:e great Oernlao iii;ds 0,0 of
tts not only apparent that hies lateen to o" P the
he Duchies as to them seems best, but 'bat'i, is
,node of di:position n which they have ree°'',',,.he
-:ot one which they believe will find faviury'',o;
iallwablet
glcietun ego
!it,ttle c
wers,i;
-__Ves of the lesser Sates. Whether Atistrl, ot,e
restore Prussia in end to abide by the .['tea y o Irt 0
the Duchies to the King of Deatt36 or
.non as he shall hove mad certain concession:lo
whether they intend to retain [Wu themeicrooy
ct, er that they do not propose to aropt fba onor
he leg as the national programme. 'ineottleir
. Powers have, however, for some titne suspect:,
oes,
intentions, and have gone so far as to org1„ oriel
sures to frustrate them. At the instauce of
.‘, otos
aGeoonference between the Ministers of the rpoote
Governments of that kingdom, S=On,Y' baelt
Wurtemberg, the two Hesses, and B log! ;ode
summoned to agree upon a course of tiottreu,ooten•
b ens
of t he recognitioa of the Duke °f P"; 01 tni
___u)rg being disallowed by the other metsbe fl,oieh
y_
ontedera,. ion, or the dibmembermeot of toe '-ririoo
of naechy not being effeeted 11 the iinel'ePdoo3. $0
fa the Duchy of Schleswig from anal kil II Der
r as tae States are concerned Wbieb :of Or
-ented to accept the above-mentioned blt reopeoV
feet-nee, no ds'-tense of opinion can still of potel
domesticrigid
discipline—Federal execution We do not
d into tfifct by them in Hoisteio.,, 000014
supposeb that there are any W" (3 ,t :i6 opere i/I:',-0
delieve4 when the Federal Cortlint'a 0014
7p.itched to Holstein that it has l, shoo'
r the mai„rity of the Diet that t oil cot'
only
tempi-in-ally :administer that Darbluioti P 4;
taro grievances were redressed by
brheelaPafento bOti
butta when we notice the course Wei-- attack Tlitig
the ken it is impossible to avoid being, liti Dotoare
was serious disadvanteges under villlfi thr°lg a
..ro. placed by her accidental relatiotlel pet)
,Holstein, with the GermanicConfederatttititdgebifet
was compelled to counsel the® vacuation°,
lothin t 6
,ebecame. Federal execution was as act fork f',
obligedtgttimste powers of the Diet, and me; of Fiscp
to accede to that advice fortheas ne, i
herself in the right in the eyes of Vire' i‘ 0
neither England d th 6 nee'
nor Denmark belie/e-1, to oe4
ttrhaet,intention of the Confederation sithP'iroreetc!io
the province, and the Ger Man r°vdeeoigeltiot
took the the trouble of veiling their ulterior .40104
decentin at
disguise. Now, however, all co.Phe iiiiobJ
vA
L
Powers of the Confederation, the Diet iti oiSea
uponvrtu to direct that the Duchy which vi3it iette,cl,
',Lek ntet wolf da ministerial ac;-, PIK, 'cllfil ,4eiel, 5;1, is
ged the sovereigoty of tilt! voe. 1:0 so
shall be e
-one
0,. handed over te an POP ..reeide 4
~Bavaria,f t the objects with which,under theil,iiies
_":„
several a meeting of the represtrceocette;
Tae of the Gem", states has bee , beeo od
Seh lesw ig- Holstein question be 000 ` iti
ufruitful of comp ;cations, teat We eitPf did
wriperhiseo_at the discovery of the sillgu ;2000 i° 04
I' necessity must arise, not so Aopoil
of
.1 ht 01 u ce
garde the mode, but as to the rig-- yol- , it,
of the two ea dole° . 01"
mes. The u--I .It ere p
German y decieres that the .1-.°llyeot Ilbar°,ol‘,
so' übl
same united, and must ;WrestedanY 131,003 Dee:010.
fate. But. although ,'"ifereet P"tioo,
he '
H Is ere at the present IDOlnent in diCOOrefjerslict/9
whereas rein is in the pessession of Or ,if 0 Pr°,,citi
e Sc' leswig is in the positleh heir core tie
~."..suuered by Austria and Prussis to %lot, hoc t to
vtotEte riope" Powers. '['he Cooteder;d, 01503
n the disposal of Schleswilr Atettl ~, of
the extent . ..., „r or,
of their votes in the PI; too Wit 00
Prussia
H ,iste.are powerless to deterftleforced "°.le"
the in. That this difficulty bae 6ot 0/4 010
attention both of the greater 0$ it rile' tbit
itis German. Powers is apparent foto tliedifoeoltiotior
in order to get rid a this ~00 the oirelf
Austria
...,,w, and Prussia have called orl-toptel° 00
comported
rs to withdrew the Federal reeer goes ewe
t e boueed of S Aron and Haeoverittot'ito ilte toed
ob'ect °°37
of
Holstein; and it i 6, tote 1"Ggfgel;le01
tol that some of the Weser SatB',„tiog iesssi
the Diet the expediency a &onto iso!cli oof
(~.troopste into Schleswig. Sate,thell 194 !sou' pot to
sere:D .nteGerman diep ft;P:l t: ore obitioil
that the despoilers of Dento3rloB dier
wrangle
of the booty.
COUNTB,Y
11--r°" ,
..-- ,
-- ...... -- 001L'
0.,, 0
mANcHESTR--Vnh.' iith • :
An averageattendance tod °rigeet ; Inl
limited demand. at market,i.,.Ooy vi , 01, I,
at the currency 1107 Oa! eiti per„aill
instances is
declined 2d per qr less money. °rep, iie° taste' et
lower. ~asper ioolb. Flour negle! sod eot 0 pot
c., .y and oatmeal were lintel! oed
la. nged in price. Indian corn declie
and beaus a dull sale at former rates.
....------ let;
a rtA l'oh tio
BIRMINGI-1101---Tll'l,eof Etlitji thet‘ id
This '
_s_. morning there was a fair stipPq -riceeo erl'ertoti,
sae,rlo to effect sales a reduction upon dibegiitted,:i Iti,,d
again
oight in some casts had to be so to Pio
beaper. Oats, beans, and , 161 for slitiof, 0,0
to 4is —English wheat was sold at 405 to s 4%,/ re, 9 Ar,
40s Per 36 stone for red. 13ar1e1,,40, 0101 or
per qr ; grinding 240 to 280
tor 3800
per 30 stone; Irish, ' s 4 J3"-- '
18 to 2 e.
Peas, 36s to 4.
2s per 36 stone. „.„1,t,,./ liiii.
.-.------ ~i.tots„ r„..
BURTON-ON-TEENT---3P.0, bet 110
There was a fairattendance of the tr to s
in • a 41ot° f
change prices. „chest, ...590 ~ 00
Old white
h
w-eat 4- 44 o'cl red.' ...los V
New do. ''esto , s ,' _ do. „ lie
44s to 475 P ev, ..,,..
.34
Malting barley. .'
- 3-e to`3Be Oets."' i.,.•
Grinding d *-
.
-o.• • „ „Vs to 320 I Bey '... i./.
.--------. ir, d 00,10000,r
BRISTOL--Tglia9P',l i, 0° 0. AP
There was a fair show of Wheat to- 'lOOO egts
slow at a decline of is per ar oreig° Isdio°
almost unsale b - . Itared.
a le. Barley nue
11_4.
beans no •
mina. Oats in limited req e. 4 61 I .
......." i 00, 11i
job lir
EDINBUROII 011P14roset, 1,00;4 poi
slow Dale
there was a large der last
°•teoeg'e Pie ree-
sale' at is Pee qu under Diet avoios orii
ley sold slowly, but 6d oils per quArtert" t ford ofr
iNts 132,-t a iittlitteil A 63 0
..... ready sale for fine cl- oe ijo
beans as before veal to il. et
Wheat on the top is 6d d0wn•..... $ rage bl 0001
Barley on the top Os 6d down ••• • '
. aveo es 0
Oats on rho top 6d up_•, ' • .0070ise Oe 91
Beans on the top 4 Od **
.•..... ....$l3 9°l
til up ........ • ..•',331
Ave. age Pricea• ~"' ~,'
Wheat.. .......... 348 9d I ()ate..." ~..•
Barley .. Od 1 Besaa'.
............. .37e 3 gr''
Total Supply na a silo 94 r.
014,
Wheat........ 1705 qrs ...... •'sola are ll:„ ,
Barley. • ...... 1483 qrs ...... " 501 cl Pr'fie ,Ir.D, pd
Oats ........ 2951 qrs ..... • • 'sold Joe 01"
8ean5........ 292 qrs... ••• • ' od ; e$
Flour sells es follows :-- whites, 410 of og
superfine, 3sOd ; fine, 35s tel. e, ,„., ife° , 00.
' rio PAYl"dp 1 d°,014
Persons who have neea in the h 41,'L 00 tO I', 1 P," 0
borrowers of Sewing Machina Will 4°,0 tuvi „,(At:f 0,-001
and become membe of. Messrs. Via",, tot u'A 010,', otiP
rs hey v"" t til" Dr' le
Machtue Clubs. Be so doing t tit ti
of, bet 1 0 led Ali,
money they now foolishly throat a i 000 0 , 0 Ol
secure to thems,lVeB the posseoioa 0.13 e voriwde.:oo,
most celebrated sewing raaohit.el let or 045, Ire 0'
form.tion given on applic,ation; or 11 .ed Cs'' veto
a stamped etiveloe Itessrs. Watts e
re piteeds,
buiidings, strand, London, W.C.• /1.11 .0, to $13,,,,e
6ateraiti
rolled daily beiween 10 and 4; I.
of CIF
-- -------- Oita hi
Birtho. bo .
, A IderShSt' t OP t
nod P,
the 17th inst., IP 4-• .eeet• Pl' i
Aiteri+, E..E, ot a daughter. „fa, 10 '
BLossu —Oa the 15tb inst., at lieeE%-, ~
Lady Harriet Lynch Bless°, of al au „ 00000 Oil.
Neavar' Oil.
MAssT —Oa the .sth inst.. at the
toe, Lady Lucy Massy, of a Oh
at iptle
VANDEUSPAR- On the 171 h Wit.. lts
Louis Vanderspar, E-q., of aOP i 0 11,
Al' .ol
PlarriageS ot 1,0.dg,
ar iist*,: toed,Y Y.lOl
IleaNvere—Wevies.--On tbe 1"1./h e;seeleteetre
Langharn- plaeo, Samuel
.134rit:_ oere„-001 '
60
Weeks eldest daughter of .1,1
re,.54,, Or,
fo ttlie
granddaughter of Bdward IloWo L,
ot St., Aelo.
Barnet. oth inotlion. "rto%
IlittisTlAN--P001,r.--On the . „..0,4 , so
London, Francis Christian, ot P'l.cceri t or
h pole, -
third daughter of J coop tr.
Yr"
square, London. Deaths , pronlifill
/ h flOt.s Si' l'tbe fifit
CA
ens,
the lit
,1,00,101011 Oh
dens, Kensiwirtee, L:eut.-I,e, fide' otit'
2d Regt, aged 64. ~. at Ells - ill
o
CnnesTlE.---0a the 16th inste e sB4.' oilt
John a Chrystio, Esq. _anie, Chees I Cie
CH,EsE —On
tell loth insti;irJ go,' 66. biotite:
Oil
ingdon Cour, eretords t :iioito po
°Ob.
.4,
HA.w,..--On the 16th inst.,. ~,,,.0 eert
w. B. Hall, R.N., ag.e4irgr, W. PI or f Irre
J 041sTEIL,-." On the 161 h ¢1
. ,___,./, 0 ,ilit
office, rall-roall, aged * • .t vologouar. ju•
On the 16th lost., puller,
Edo'P-
Pt/LlSit.--- _..., ~. _ odes A
Cbriotopher Wllliat.
fordshire, aged 57.

is 011" so,
London: l'rtl4d socl Fe:A.OO It 011;11s"5" ftre0;,..,,1f 41
of Na 11.2, Strand. Printer.. e_e , :0 ttt
Strand. in the Precinct oi
_to ;rbifiii,
rgbrilUY