The Union and journal. [volume] (Biddeford, Me.) 1858-1882, 1861-08-23
War Taxes.

following able article on the subject, from
the New York World -
"This is a matter which Congress and the
country must look fully in the face. liza
direct tax bill is not passed this session we
are ruined. To what purpose is 1t that the
President is authorized to bring large army
into the Geld il he cannot pay or subsist 1t !?
lie will have to disband it before he gets it
together, unless Congress supplies him with
money. 1t is superlativc tom.foolery to say
that it has passed bill authorizing a loan
Of two hundred and fifty millions OF dollars,
80 long as it has done nothing to satisfy
capitalists that they would get their interest.
Money is the first, the second, and the third
requisite for conducting great war, and If
our government cannot succeed in command.
ing it, the army will have to be disbanded,
the Union surrendered, and the rebels enjoy
an nsolent triumph. Thoughtful and in
telligcnt men, as they watch with intense
anxiety the progress OF the direct tax bill,
feel more detection least it should no. pass
than is caused by any other circumstance
connected with the war. They fear that
Congress may not have the sense and iirmness
to act on sound financial principles that the
government. in consequence, will be dr.yen
- desperate makeshilts, which can serve only
d.. transient purpose; and that u bankrupt
treasury, ruined credit, and broken faith,
Sll be the precursors Of the final downfall OF
ne Union. The bill passed the House may
20 different from what many well.iniorned
zen would wish. 1t may not be perfectly
.qiitable (what large scheme Of taxation
YER was p in its operation; but even those
whom It would bear the most heavily will
onsdcr it infinitely preferable to the ad-
'urnmcnt Of Congress without some effective
'isasure for strengthening the public credit,
nd thus enabling tho Secretary Of the
rcasury to procure the means for carrying
IN the war.
It must not be disguised that the taxes
imposed by this, or any similar bill, will be
more or less burdensome. II therefore be.
comes proper to explain to the people why
they are necessary, for their necessity, once
perceived, We cannot distrust the patriotism
Of the loyal states as to suppose the people
willno cheerfully submit to burdens required
for the salvation OF their imperiled' country.
Toget clear apprehension Of this subject it
necessary to 60 back eight months. and
consider the condition Of the treasury at the
opening Of tho regular session Of Congress in
the early part Of last December. 1t will be
recollccted that ut that time Mr.. Buchanan's
administration had still three months to run
and that the traitor Howell Cobb was Secre-
tary of the Treasury. The mismanagement
Of that precious functionary had then already
rendered the treasury bankrupt. There was
no money to pay the public creditors whose
demands were past maturity. nor even the
members Of Congress. On tho 18th OF the
month Congress passed an act authorizing
the issue Of ten millions Treasury notes, in
denominations as low as fifty dollars. Part
Of this loan was Immediately advertised, to
supply the immediate wants Of the govern
ment, and the best terms on which the Sec
rctary could get 1t taken were the cxorbitant
interest 81 twelve per cent. In February u
loan Of SOS 900, 900 was authorized, and on
the ID OF March another Of SlO,OOO,O ,OOO.-I
These loans, which were authorized to take
the form Of six per cent. Treasury notes
have been the principal resource of the gov
ernmcnt since the present entadministration came
into power, and the Secretary Of the Treasury
is now in the market with them without the
ability to get them taken. Since the first ol
July the Treasury has been getting on by q
hand.to-mouth shift Of borrowing various
sums. on Treasury notes, for sixty days-that
being the longest credit it can get. The
twelve per cent notes Of last December are
now selling for 100, and the United States.
six per cent couIon bonds at SO and irac-
tion. This indicates the ruinous rates Of in
terest at which the government will have to
borrow II it is compelled to come into the
market with loan under the act passed at
the beginning Of this extra session. without
some better guarantee o. interest than Con.
gress has yet furnished. The present funded
debt OF the government amounts to about
s7O,O00,OOO, and there are outstanding
Treasury notes which amounted to $50 ,OO0,.
600 on the lst Of July, and have been con-
siderably incrcasedsincc. Tho army Of three
or four hundred thousand men, which will
coon be in the field, will create an annual eI'
pense OF three or four hundred millions oI
dollars. II s easy to see. therefore, that II
now, at the beginning Of the war, the govern.
ment cannot borrow except at exorbtlnt
rates. its credit will sink lower and lower
with the incroise Of its wants, and will
soon 10 utterly pros,ratcd. Tho direct
tax bill, Is a wise and necessary measure. in
tended to vivity and strengthen the credit OF
the government. aud enable Il to obtain loans
on reasonable terms, by satisfying Lenders
that their interest viii bo promptly paid
when IL falls due. Its so perfectly clear to
all who have attended to the subject that
nothing short Of this can save the country
and enable it to prosecute the wal, that there
ought to be the most cheerful and hearty
acquissnce on Il . part Of al loyal citizens
In taxes which, though they may bear heavi-
ly, are most urgently demanded BY the public
safety" !