Cleveland morning leader. [volume] (Cleveland [Ohio]) 1854-1865, 1861-12-10
TRADE IN REBEL STATES
Let Commerce Follow the Flaq
Discussion of Military Affairs
THE POLICY OF THE WAR!
Last Nights Report.
FROM NEW YORK.

one Of the most powerful vessels in the nav
and swift gunboat to intercept the reb,
steamer Nashville on her return trip. Tb
instructions of the officers are to approac
the British coast as near as the neutralit
laws will permit and to cruise off the coal
until they capture the steamer. The NASH
vile is likely armed, and if the United State
steamer fall in with her she win certainly
taken. A written bill of attainder on th
part Of the loyal owners of the Nashville ha
also gone out in one of the late steamers t
be executed in Southampton.
Secretary OhaSe's report, after referring t
the recommendations contained in his Jul
report, gives the manner in which he Ob
tanned loans for various purposes of tn
Government. The immediate exigencie
were provided for by issuing $l4, NI6, ,O34 il
6 per cent two years Treasury notes, AM
| Sl2,s77, $50 in the same notes payable il
60 days. His, next care was to provid,
for disbursements for the war anC
he adopted the plan to engage tht
banking institutions of the thre,
commercial cities of the seaboard to sdyanct
the amount needed in loans for years 8
10 bonds to be reimbursed from proceeds o
similar bonds subscribed for by the people
hoping thus to combine the capital of The
banks and the people with the credit of the
Government 30 as to give efficiency to ad.
ministrative action and competent support
to the public credit and the result has ful,
| filed the hope. He then rehearses the agree
ment entered into between the banks and
himself by which the former agreed to take
the loans. The history of the first two loans
has already been made public. The second
loan was negotiated with the banks on the
10th of November by which he agreed to
issue to them fifty millions per cent. bonds
at par for the bonds bearing per cent. in
terest. This agreement was accompanied
with an arrangement for reimbursement and
entailed no expense except the preparing and
issuing the bonds. This was also complied
with the option to the banks that on and af-
ter the lst of January, fourth advance
of fifty millions should be made on the same
terms as the first or second if required. In
addition to these loans $2l, 165, gao up to the
3Oth of November were issued in Treasury
bills Of ives, tens and twentys, payable on
demand, and So, $50, l35 remained in the
the Treasury. This amount may be regarded
as g loan from the people.
The aggregate realized from loans in va
rious forms is Sl9T, IA, ,58S. The revenue
receipts have not fulfilled his expectaLion.-
He says an act modifying the rates of duties
differed from the measure he submitted to
Congress, in most Of these particulars, es-
pecially in diminished duties on tea, coffee
and sugar, and exempting goods in ware
house and on shipboard. The difference was
disadvantageous to the revenue, which po-
| tential cause of reduced receipts, may be
found in the changed circumstances Of the
country proving unfaVorable to foreign COM
merce. The circumstances compel him to
reduce his estimates for 1851 from the rev
enue from S57,OOO,OOO to S32,19s,6O2-
The estimates from receipts from lands and
| miscellaneous sources be reduces from S3,-
O0O,0 900 to $2,340,O62. The only other
sources of revenue is a direct tax authorized
by Congress, which, if increased to the limit
proposed by the Secretary and assumed by
States, the further sum of twenty millions
may be expected. The aggregate of revenue
may be thus estimated at So, 552, $50 which
is S25, ,447, 334 less than the estimate of July.
The Secretary states the estimates for July
were based on the raising of 25O, 900 yolun-
teers and an increase Of the REGULAR army by
II regiments, bat after that report had been
closed Congress authorized the acceptance by
| the President of 500, 900 men, besides adii-
tional companies and officers. This large in
crease has and must necessarily augment the
expenditures far beyond the limit indicated
by the original estimates, which will be still
further extended by the increase of the navy,
and additional appropriations are asked for.
Of these additional appropriations S47, 1885,
566 were authorized by acts of last session, and
Sl43, 100, 92T are now asked for, making an
aggregate, including S22, 7s7, ,O33 for indef-
mite appropriations, Of S2l3, ,9O442T. To
/ provide these large sums Fetrenchment and
reform are Indispensable, Contracts should
be subjected to ltrict supervision. and con-
tractors rigorous ressVP6niibility. All unne-
eessaFy Offices should be abolished, and sala.
ries and pay materially reduced.
While thus recommending retrenchment
! he feels himself constrained to renew sug-
gestiOns heretofore submitted by him, that
property Of rebels should be made to pay in
part, at least, the cost of rebellion. Proper
ty of great value in loyal States is held by
proprietors virtually engaged in a guilty at
tempt to break up the Union, which is just
jy forfeited to the people, which should be
subjected to sequestration or conhscation and
the proceeds applied to the satisfaction Oi
claims arising fom the s.wrr. Property Of
rebels in rebel States should be treated in
the same manner. Rights to services under
State laws must Of necessity form an ex-
ception to any rule Of confscatiOn. Per,
sons held By rebels under such laws to ser
vioa "a slavaa NAV houar ba fuufly Eberafad
from their constraint and made more valu.
able in various employments through volun.
tary and compensated service than if con.
fscsted as subjects Of property.
The Secretary says that the most sacred
Lduty of the American people now is the con-
ceutration of all their energies to secure the
re-establishment of the Union, and sound
policy would seem to suggest no extension
Of foreign trade but more absolute reliance
on American labor, American skill, and
on American soil. he recommends thS
duties on tea. coffee and sugar be increased
to % cents per pound on brown, 3 cents on
clarified, 20 cents on green tea, 5 cents on
coffee, and that nc other alteration Of tariff
be made unless further experience shall
demonstrate the necessity. BE deems il
necessary to increase the direct tax so as Z
produce from loyal States a revenue Of a
least twenty millions, and indicates sucl
duties on stills, distilled liquors, tobacco
bank notes, carriages, oOnveyances iot pro
perty, and other like property as viii pro
duee an equal additional sum. The incomt
tax will probably produce SIC, 900, 900 more
making an aggregate Of fifty millions. Th'
Secretary is aware that the sum Is large