The Sun.
London, England, 1861-12-25 00:00:00

AMERICAN FINANCE.

The report of the Secretary of the Treasury
is a comprehensive and valuable document, conser-
vative and cautious in the changes it recommends,
and clear and positive in the enunciation of those
sound principles of financial policy which framed
the Sub-Treasury Law and vetoed the United
States Bank. The Secretary states, as the prin-
ciple for regulating the amount of revenue " in-
dispensable to a sound system of finance" which
" reflection has only determined" in his mind as
just and for the interests of the people, "taxation
to produce enough for ordinary expenditures, for
prompt payment of interest on the public debt,
existing and authorised, and asurplus fund sufficient
to extinguish the principle within 30 years." Mr.
Chase rivets this clear exposition of the American
national system of paying debts, as distinguished
from that of European Governments, with the
following emphatic sentence:—" The idea of
perpetual debt is not of American nati-
vity, and should not be naturalised. The tariff is
recommended to be advanced as follows—Brown
sugar, Vic. per lb. ; clayed sugar, 3c, ; green tea,
20c. ; and coffee, sc. No other changes are pro-
posed. The direct tax on property is recommended
to be 20,000,000 dols. from the loyal States ; and,
furthermore, 20,000,000 dols. by duties on stills and
distilled liquors, on tobacco, en bank-notes, on car-
riages, on legacies, on paper evidences of debt and
instruments for conveyance of property, and other
like subjects of taxation ; also 10,000,000 dols. from
the income tax, making the total yearly product of
direct taxation, other than Castoms, amount to
50,000,000 dols. per annum. The proceeds of Cus-
toms duties are estimated at 32,198,662 dols., and
from lands and miscellaneous sources 2,354,062 dole.
The total from all other sources except direct taxa-
tion is estimated at 40,000,000 dols., and from direct
taxation 50,000,000 dols., making the yearly reve-
nue 90,000,000 dols." On this subject the Secretary
gives the following interesting remarks and calcula-
tions—

" But if the sum is large, the means of the people
are also large; and the object to be attained by a
consecration of a portion of them to the public ser-
vice is priceless. The real property of the loyal
States is valued, in round numbers, at seven and a
half thousands of millions, the personal property at
three and a half thousands of millions, and the
annual surplus of earnings of the loyal people at not
' less than 300,000,000 dols. Four mills on each dollar,
or two-fifths of 1 per cent. on the real and personal
property of the loyal States, will produce -14000 000
dols. ; to which sum the proposed income tax will
probably
lilittle
m addore
thanl O, Oooo,noeo-0s
one-sixth
tohl s.
of
the The s
uwrhpol
ul es sumea
rn
inB. wills
be
of the country."
The Secretary explains thattheJulyofes2tiezaotoeos
of expenditure were based on an army

The exi,tiag appropriations, loans;-. and esti-
mated revenue for the year ending Jutre'3o, 1862,
are estimated at 329,5151,991 do's., and the expen-
diture at 513,406,422 dols. This will require
further loans for 213,904,427 dols., but 200,000,000
dols. will probably be enough.
For the year ending June 30, 1863, the, ex-
penditure and interest on debt are estimated at
475,331,245 dols., and the receipts from Customs
and taxation at 95,800,000 dols., leaving a balance
to raise by loans of 379,431,L15 dols.
The whole amount required from loans may,
therefore, be thus stated:—

For the year 1862, under existing laws
For the fiscal year of 1862, under laws to
be enacted ..
For the fiscal year 1563, also under laws
to be enacted ..

Making in the aggregate

Pols. c.
75,449,675 'OO

.. 200,000,000 00

.. 379,531,245 51

654,980,910 51

If the war lasts until June 30, 1863, and these
estimates prove correct, the national debt on that
day will be 900,000,000 doll.

The statement in brief, is as follows:

Dols. c.
On July 1, 1860, the public debt was .„' 61,769,703 08
On July 1, 1861, 1, II 90,867,828 GE
On July 1, /862, the public debt will be.. 517,372,802 93
On July 1, 1863, 897,372,803 93
Mr. Chase, in his remarks on bank circula-
..

tion, gives an unqualified adherence to the
principle of specie payments as indispensable
to sound banking, and condemns the further
we of United States demand notes by Government.
The plan which he recommends is prudent, safe for
the public interests, and, under the judicious con-
trol of practical business men, may be made the in-
strument for a thorough regeneration of our bank-
note currency. The following are its suggestions :
" Its principal features are (Ist), a circulation of notes
bearing a common impression, and authenticated by a com-
mon authority ; (2d), the redemption of these notes by the
associations and institutions to which they may be delivered
for issue; and (3), the security of that redemption by the
pledge of the United States stocks, and an adequate provi-
sion of specie. In this plan the people, in their ordinary
business would find the advantages of uniformity in cur-
rency; of uniformity in security; of effectual safeguard, if
effectual safeguard is possible, against depreciation ; and of
protection from losses in discounts and exchanges; while,
in the operations of the Government the people would find
the further advantage of a large demand for Government
securities, of increasd facilities for obtaining the loans re-
quired by the war, and of some alleviations of the burdens
on industry through a diminution in the rate of interest, or
a participation in the profit of circulation, without risking
the perils of a great money monopoly. A further and im-
portant advantage to the people may be reasonably expected
in the increased security of the Union, springing from the
common interest in its preservation, created by the distri-
bution of its stocks to associations throughout the country,
as the basis of their circulation."