The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1861-12-20
NEW sE.RlFlIEs-7.NO...4l 400

necessary to increase the direct tax 50 as to
produce from the loyal States alone reven-
ne of at least twenty millions of dollars, and
TO- lay such duties on stills and distilled, Ii
quors, on tobacco, on bank notes, on car,
riages, or legacies, on paper evidences Of debt
and instruments for conveyance OF property,
and ot9er like subjects of taxation, as will
produeb an equal additional sum- Tie ex-
istiug pspyision for an income tax, just in its,
princfE!e, inasmuch as it requires largest
contributions from largest means, may, pos
sibly, and if somewhat modified will, proba-
bly,, produce ten millions of dollars more.
The aggregate taxation will thus amount to
fifty millions of dollars.
The Secretary is aware that the sum is
large; but seeing, as he does, no probability
that the revenue from ordinary sources will
exceed forty millions of dollars during the
current year, and knowing, as he does, that
to meet even econQmized disbursements, and
pay the interest on the public debt, and pro-
vide sinking fund for the gradual reduc-
ton of its principal, the appropriation of
ninety millions of dollars will be necessary,
he feels that he must not shrink from plain
statement of the actual necessities of the sits
uation. e4,sii, g.r
But if the sum is large the means of the
people are also large; and the object to be
attained by conservation of portion of
tfem to the public service is priceless. The
real property of the loyal States is valued, in
round numbers, at seven and half thousands
of millions the personal property of three
and half thousands of millions :;
and the annual surplus earnings of
the loyal people at not less than three
hundred millions of dollars. -Four mills on
each dollar, or two ifths Of one per cent. on
the real and personal property of the loyal
States, will prodvce forty four millions of
dollars to which sum the proposed income
tax will probably add ten millions. The
whole sum will be little more than one sixth
of the surplus earnings of the country.
Certainly, such tax cannot be paid with
out Inconvenience doubtless the legislature
which imposes such tax must take care
that the money thus raised be used econom-
ically, prudently and honestly. But can
any one hesitate about such or even greater
contributions when the Union and the pop
ular institutions which it guards are put in
peril by rebellion, and the public faith
instances, have placed the whole earnings
OF Industrious lives in the hands OF The gov
ernment for its suppression, asks support?
FURTHER RELIANCE TO BE PLACED UPON
LOANS.
1t will be seen at glance that the
amount to be derived from taxation forms
but small portion Of the sums required for
the expenses of the war. For the rest the
reliance must be placed on loans
Already, beyond the expectations of the
post sanguine, the country has responded
to the appeals of the Secretary. The means
adopted for securing the concurrence of all
classes Of citizens in financial support to the
government have been already explained.
/. remains only to be said here that, while
the action of the banking institutions in as.
Stunning the immediate responsibility of the
whole advances, hitherto required, as well as
the final responsibility of much the largest
portion of them, merits high eulogium, the
prompt patriotism with which citizens of
moderate means and working men and
working women have brought their individ-
ual offerings to the service of their country,
must command even warmer praise. 1t
should be the constant care of the national
legislature and OF the national government
in all its departments that the generous con.
fidence reposed by the poor as we'll as by
the rich in the public faith be never disap-
pointed
1t must not be concealed, however, that
the condition of the national finances when
the present Secretary entered upon the du-
ties of his Office, though somewhat improved
during the able and upright though brief
administration of his immediate predecessor,
was such as to make Instantaneous rates
in the negotiation of loans inevitable. 1t =.
affords just occasion Of graduation that,
under most embarrassing circumstances of
shaking credit and immense demands. loans
have been effected at home, without resort
to any foreign market, to the amount Of one
hundred and ninety-seven millions of dol
lars, with virtual engagement for fifty
millions more, at an average rate, consider
ing the conversion of the three years 100
bonds into twenty years. six per cent. bonds
as certain, of somewhat less than six and
half per cent.
THE RATE. OF INTEREST.
This rate OF interest is, however, higher
than the United States, with their vast and
constantly accommodating resources, ought to
pay. No doubt reasonably exists that after
the re-establishment of union and order the y
five per cent. bonds of the United States will
command premium in the markets OF the
world, unless the national debt be, mean
time. augmented beyond necessity or reason.
The wealth and power of the country, man
ifested in the suppression Of rebellion, will
demonstrate the absolute safety Of invest
ment in United States stocks; and foreign
capitalists, restricted to the lower interests
and the inferior security Of public debt in
other c,nnfriea will be Attracted hu the an. .