Daily Ohio statesman. [volume] (Columbus, Ohio) 1855-1870, 1861-07-09

The U. 9. Treavurv-ise port OF Score.
! tary Chase.
TarAsuRY DEPAHrmErr, wAsHnGroN,l
Friday, July s.
The Secretary of the Treasury 10 required By
law 70 prepare and lay before Congress-, at the
commencement Of every session, report on the
subject OF finance. containing estimates Of the
public revenue and public expendilures, aud
plans for improving and increasing the revenue.
This duty, always important and responaible,
y now rendered doubiy important and responsi-
bic BY the peculiar circumstances under which
the present session of Congress 10 held.
A vast conspiracy against the Union Of the
States, and the very existence of the National
Government, which has been gathering strength
and preparing hostilities for several years past,
has at lengtn broken out into figrant violence,
and has assumed proportions 90 serious that an
extraordinary exertion Of the public force,
creating extraordinary demands upon the public
resources, 10 required for its speedy and com.
plete discontinue and suppression. In the
Judgment OF the Secretary, the clearest under
standing Of the actual condition Of the public
finances, and of the measures demanded by its
exlgencies, will be obtained BY considering the
whole subject under the following general
heads:
Fr1-Tne balance arising from the receipts
ana expenditures OF the fiscal year 1851, ending
on the 30th of June.
Seondt-The demands upon the Treasury,
arising under existing appropriations, and Great
ed BY the new year 1852, exigencies for which
provision is to be made during the fiscal year.
Ihtrd-The best way Of providing for these
demands, and the means available for that pur-
pose. ..btftt strrsl 49,
! As to the first and second branches, the Sec.
retary shows an aggregate of appropriations al.
ready made Of seventy mine millions, seven
hundred and ten thousand eight hundred and
seventy dollars and eight cents. He proceeds:
The additional estimates herewith submitted
for the service Of the fiscal year ending June
| 3O, 1861, including the deficiency caused BY the
application of $6,29S. .s59.06 to the service OF
the preceding year, will require additional ap.
propriations.
Fof Civil List, Foreign Intercourse and mis-.
cellaneous objects, 1881 496 go; for the Interior
Department, $43l ,525.75; for the War Depart
ment, Sls5 296 391l9; for the Navy Depart
ment, $50 .6O9 .62O.29; in the aggregate, $2l7,-
l65, $50 Is. In addition to these demands upon
the Treasury, It will be necessary to provide for
the redemption Of the Treasury Notes due and
maturing, 70 the amount of $l2 639 .66I "a, and
for the payment Of the interest on the public
debt to be created during the year, which, com
puted for the average Of the elk months, may
be estimated at s.. 600 600.
After further figuring, the Secretary says the
whole amount required for the fiscal year Of
5sl.s7.
Il will be seen that in the foregoing esti-
mates, no provision for the interest on the ex-
istiDg public debt specifically appears. The
omission Is only apparent, the estimate for that
interest being included In the sum of nearly
$66. .00O, 200 already appropriated for the year
1862.
On the third branch, viz the Ways and
Means, the Secretary says:
"To provide the large sums required for or.
dinary expenditure, and by the existing emer-
gency, 1t is quite apparent, duties on Imports,
the chief resource for ordinary Disbursements,
will not be adequate"
The deficiency Of revenue, whether from i'm
ports or other sources, must necessarily be sup.
piled from loans, and the problem to be solved
is that OF go proportioning the former to the
latter, and 80 adjusting the details of both, that
the whole amount needed may be obtained with
certainty, with due economy, with the least pos
sible inconvenience, and with the greatest pos
sible incidental benefit to the people.
The Secretary has given this important sub.
ject the best consideration which the urgency Of
his varied public duties has allowed, and now
submits to the consideration of Congress,
with great Difference, and no little distrust OF
bis own judgment, the conclusions to which he
has arrived. Heis of the opinion that $50, ,000,-
00O should be provided by taxation, and that
$240, ,0O0 600 should be sought through loans.
lt will hardly be disputed, that In every sound
system of finance, adequate provisions BY tax
alton for the prompt discharge of all ordinary
demands, for the punctual payment of the In
terest on loans for the creation Of gradually
increasing fund for the redemption Of the prin-
cipal, Is indispensable.
Public credit can only be created by public
faith, and public faith can only be maintain.
ed by an economical, energetic and pru-
dent administration of public affairs, and by
the prompt and punctual fulfllment of every
public obligation. 1t has been already stated
that appropriations for the ordinary expenditures
for the fiscal year of 1862, including the perma.
nentaud Indefinite descriptions, amounts to $685.
SS7.S49 81, and the interest to be paid on the
debt to BIZ incurred during the year, has been
estimated at $1,000, 600, msking an aggregate
of ordinary expenditure of S74 6S7, ,649 "a. If
to these sums be added 81, ,000, 900 as provision
for the reduction and fnal extiDguisbment of
tte public debt, the total will be SIS. .8S7, ,49 a.
To provide for these payments it is proposed, In
raise by taxation atleast the sum Of $50, 900 ,000
In considering the choice of revenue, adequate
to the purposes just indicated, the attention of
the Secretary has been necessarily drawn to the
different modes Of taxation authorized BY the
Constitution. The choice Is limited to duties
| on imports; direct taxes and Internal duties or
| excise duties on imports, constitute the chief
form of indirect taxation. Direct taxes include
csptation taxes, taxes ON real estate, and prob.
ably general taxes on personal property included
In lists embracing all descriptions, and valued by
a uniform rule, while under the head Of internal
duties and excises, may be included all taxes on
consumption, and taxes on special descriptions
Of personal property, with reference to use
rather than value. The principal advantages
Of the system Of direct taxes are found In the
sensbility with which they are felt and observ
ed, 10 the motives thus arising for economy
and fidelity 10 the Administration, and in the
manifest equity Of distributing burdens In pro-
portion to means rather tnan In proportion 70
consumption. On the other hand, the advsn.
tages Of indirect taxstloJ, by duties on imports,
are found in the economy Of collection, 10 the
facility of payment, Ia the adsptsbllity to
the encouragement of industry, aud, above all,
in the avoidance Of Federal interference with
the finances Of the States, whose main reliance
for revenue, for oil objects of State administra.
tion, must necessarily be upon levies 90 proper.
ty. These considerations have doubsless de
termined the preference which has al9ays been
evinced by the people of the United States, as
we'll as by their Legislative and executive, for
duties on imports, as the chief source Of ma
tional revenue Only on occasions OF special
exgency has resort been had to direct taxa.
tion, or 70 internal duties or excises.
No departure 10 proposed by the Secretary
from the line of policy thus sanctioned. He