The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1861-12-20

revenue, commerce and home industry.
The most sacred duty Of the american
people at this moment requires the conse-
secration of all their energies and all their
resources to the re. establishment Of Union
On the permanent foundations Of Justice
and freedom; and while other nations
look with Indifferent or unfriendly ewes
upon this work, sound policy would
seiia to suggest not the extension of for
eign trade but more absolute reliance
under God, upon American labor, Ameri-
can skill and American soil. Freedom OF
commerce is, indeed, a wise and noble
policy; but to be wise or noble it must
be the policy of concordant and fraterna]
nations. @
In accordance with these views, the
Secretary begs leave to recommend that
the duties on tea, coffee and sugar be in
creased to the rates heretofore proposed
that is to say, to two and one half cents
per pound on brown sugar; to three cents
on clayed sugar ; to twenty cents per
pound on green tea, and to FIVE cents per
pound on coffee ; and that no other alter
ations of the tariff be made during
the present session of Congress, unless
further experience or changed circum-
stances shall demonstrate the necessity or
expediency of them. Ali considerations of
prudence and patriotism seem to concur in
favor of giving to the existing tariff full
and fair trial, and of reserving the work of
revision, modification and permanent set
tlement for more propitious days.
THE TRADE OF THE COUNTRY INCREASING.
1t has been already remarked that the re-
ceipts of revenue from duties during the
first two quarters of the current year have
not equaled expectation. 1t is highly prob
able, however, that the revenue Of the last
two will considerably exceed that of the
first two quarters of the year. A consider
able improvement in the condition of trade
and industry is clearly perceptible, and
promises to be permanent: An increase of
the revenue from customs may therefore be
reasonably anticipated
1t is quite clear, however, that no antic-
ipation of revenue from imports, sufficient
in amount for the various demands of ordi-
nary and extraordinary expenditure, can be
wisely INDUCED, so long, at least, as the ex-
isting contest shall be prolonged; nor is it
probable, should the debt created in the
suppression OF the rebellion reach very large
proportions, that the customs revenue will
suffice for those demands during the first
years after the restoration of peace.
1t becomes the duty Of Congress, there
fore, to direct its attention to revenue from
other sources, to consider the character and
extent of the provision made at its last ses.
sion, and the expediency of further provision
OF a similar character.
The provision made at the last session
was of two descriptions: first, direct tax of
$40, 900, 900, of which $l4,846,O18 was ap.
portioned to States and Territories ac-
their obligations to the Union,
and 5,l53,982 to States the citizens Of
which repudiate those obligations and are
in open rebellion; and secondly, an internal
duty of three per centum on all annual in.
comes, with certain exceptions and deducN
tons.
DIRECT TAXES TO BE COLLECTED BY COVER
NoRs OF STATES.
As it is highly desirable to avoid, as long
as practicable, introduction into the States
Of federal agencies for the assessment and
collection of taxes, the Secretary, relying on
assurances from Governors of various States
that the amounts apportioned to them res
will be assumed, collected and
paid, through existing State agencies, has
hitherto refrained from advising the appoint
ment of the officers necessary for direct as
sessment and collection. He has been the
more readily persuaded to this course because
both the income and direct tax are requires
to be assessed with reference to valuation
which can only be ascertained for the purd
poses of the income tax, after the first day
Of January. and for the purposes Of the di.
rect tax, after the lst day of April next.
THE INCOME TAX.
The Secretary is acquainted with no eta
.istics which afford the means of satisfac-
tory estimate of the amount likely to be
realized from the income tax. Considering,
however, how large proportion of incomes,
after the deductions sanctioned by law, will
all within the exemption limit OF $500
year and considering also what numerous
questions will certainly perplex its assess
ment and collection, he respectfully submits
to the consideration of Congress whether
the probable revenue affords sufficient rea-
son for putting in operation, at great cost,
the machinery of the act, with view, should
the States assume the direct tax, to the COL
lection of the income tax alone.
The prudent forecast which induced Con-
gress to postpone to another year the neces~
3ity of steps for the practical enforcement of
the law, affords, happily, the opportunity of
revision and modification. 1t affords, also,
the opportunity Of comparing the amount Of
needed revenue with the probable income
from taxes of every kind, and Of so shaping
legislation as to secure, beyond doubt. the
sums essential to the ful6lmeut of national
and the maintenance Of the ma
ional credit.
THE DIRECT TAX TO BE INCREASED.
In the Judgment of the Secretary, it will be