The daily exchange. [volume] (Baltimore, Md.) 1858-1861, 1861-07-08
REPORT o. THE SECRETARY Of THE.
TREASURY.
TREASURY DEPARTMENT,

|
TREASURY DEPARTMENT, I
WASHINGTON, July 5. (
The Secretary Of the Treasury is required by law
prepare an lay before Congress. at the mmencen en-
OF every session. report the subject of finance cor
tanning estimates of the public revenue and public pH
pendnres and plans for improving and increasing tn
! revenue.
! This duty, always important and responsible is M,
rendered douby important and responsible hy the pecu
liar circumstances under which the present session
| Congress j. held.
vast conspiracy against the Union Of the States an
the very existence Of the national government whic
has been gathering strength and preparing hotiIitiss
secret FOR many years, has at length broken out into
grant violence, and has assumed sario,
tt all extraordinary exerton IF the public force cea
ting extraordinary demands upon the public resources
required Tor its speedy and complete discontinue an
suppression In the Judgment of the Secretary the clear
est understanding of the actual condition of the
ma and of the demanded by its ence.
VIII be obtained by considering the whole subject unde
the following general heads:
1st The balance arising from the rec .ints and exnen
ditures of the fiscal year 1861, ending on the 3Oth
June
I'd The demands upon the Treasury arising under ex
lsuns appropriations and created ly the year
eXlgences FOR which provision is to be made during
fiscal year
Sd The best way of providing for these demands AM
the means available Tor that purpose
AS to the first and second branches the Secre tar,
SHOWS an aggregate of appropriations already made
seventy nine millions seven hundred and ten thousau,
eiknt hundred and seventy dollars and eight cents H
The additional estimates herewith submitted far th,
serve OF the fiscal ending June 81 1861 ncludn.
e deficiency caused by the application of $50
ti, @ service OF Tue preceding year. will require addi
For civil list, foreign intercourse and miscellaneous.
Objects SS3l 9o for the nerio Department S43 25
10: for the War Depart $3.50 2o6 Io far the Ma
Wy Department, $50 609 $50 29 in the aggregate &2l7
$40 l5 In addition to these demands upon the trea
su II VIII be necessary to provide the redemptian
the treasury notes due and maturing to the amount al
sol g. and for the payment of the interest on tn,
public debt to be created during the year which
tea Tor the average of the ha
at so 0G0GCO ~ We
After further figuring the Secretary says the whole
amount required for the fiscal year of 1862 NAV therefore
be stated at S3lS, S,5i9.5SlS 81.
1t will be that in the foregoing es imate no prov-
SION or the nereston the existing public debt speccal
~ appears he omission is only apparent the estimate for
that interest being included in the nearly s66 900
ooo already appropriated for the year 1862.
on the third branch viz the ways and means the Sec
rery says To provide the large required for
nary expenditure and by the existing emergencies il il
quite apparent duties on imports the chief resonrcr far
ordinary disbursements, will not be adequate
Inc deficiency Of revenue, whether from imports or
oS sources must necessarily be supplied from loans.
and the problem to be solved is that of proportonn
the former to the latter, and adjusting the details Of
Doth that the whole needed may be obtained with
certainty with due economy, with the least possible in
convenience and with the greatest possible incidental
benefit to the people.
The Secretary has given this important subject the
best consideration which the urgency of his varied nubc
duties has allowed, and submits to the
OF Congress, with great Difference and no little dStrus
OF his judgment, the conclusions to which ne has
arrived. He is of opinion that $50 900 eco shoud H..
raised by taxation and that So should be son
through loans 1t will be hardly disputed that in every
SOUND system OF finance adequate provision by taxation
for the prompt discharge of ali ordinary demands for the
punctual payment of the interest loans and for the
creation of gradually increasing fund for the
ton of the principal is indispensable.
fuolc credit can only be created by public faith and
puDc iaIth can only be maintained by an economical
energetic and prudent administration of public affairs
and ny the prompt and punctua fulfiIment of every
public obligation 1t has been already stated that anpro
praons Tor the ordinary expenditures the fiscal wear
ol loOS, including the permanent and
tons amounts sos SS7 81 and the interest to he mai
the debt be incurred during the wear has bee
mated AT S9OoOOO0-m king aggregate of ordinary
expenditures of s49 81 If to these sums he added
SoOoOOOO as provision for the reduction and extingh
ment "f the public debt the total will be $40 $40 81
TO provide for these payments, it proposed in ac
cordance with the principle just stated raise by taxa
uon at ST. the Of $50 900 In consider ing the
choice OF revenue adequate to the purposes just indicated
the attention of the Secretary has
TO the different modes of taxation authorized the Con-
sttutlon The choice is limited to duties on lmnorts
direct taxes and internal duties for excise du ties on i'm
ports. constitute the chief form of indirect taxation
Direc: taxes include capation taxes taxes on real
and probably general taxes personal property in
Guided in lists embracing all descriptions and valued hy
uniform rule, while under the head of internal duties
and excuses may be included all taxes on consumption
and taxes on special descriptions of personal proner
with reference to use rather than value
The principal advantages Of the system of direct
are 'ound IN the senslby with which they felt and
observed in the motives thus arriving for economv
fidelity in the administration and in the manifest equity
OF distributing burdens in proportion to means rather
imam IN proportion to consumption On other hand
the advantages OF Indirect taxation by duties on imports
are found in the economy of collection in the r,cI.
payment in the adaptablity to the encouragement of in
dustry and, above all in the avoidance OF federal
terence with the finances of the States whose main raI
ance Tor eVenue for all objects of
must necessarily be upcn eyies on property These con
SIderations have, doubtless determined the preference
winch has always been evnced by the people of the nj
tea states as well as by their legislative and executive
fer duties imports the chief source of re
venue only on occasions of special exigency has re
excise. ' VI
No departure is proposed by the Secretary from tn.
heH2 Jnl2 Jnl22ylcy . thus sanctioned He ventures ,,
produce the principal part the needed ant
such resort to direct taxes internal duties as crcum
stances may require, and in order make good what
ever OF duties be found to exist That the
0arl OF duties VIII not produce the required
sound principles of finance under existing circumstance
is proposition which will command general assent
of affairs
The receipts for the last quarter of the fiscal year us
closed only IS 527 2i6 3d. and though very cnnsi
cradle Improvement in the may be CONFIDENT,
anticipated for the fiscal year should no chang
be maie in the of duties it will be nade1uatp he
yond doubt to the demands of the treasury which shou
be provided for without loans These demands
as has been already stated will reach the of $40
sum not greater perhaps, than may be rea
sonably expected in prosperous years from well
adjusted tariff of duties, though greater than can now b.
expected from any tariffs.
The disorders of business incident to disturbed con
dition of political affairs will be gradually redressed
new channels open to receive the trade obstruced
former courses and the employments engage the
dustry displaced from former pursuits With this revi
val of trade and industry the will improve ever
though the of peace NAV be DELAYED bevont
our present hope. 1t is hardly to be doubted
that the great body of the citizens of the States now
VoiVedn the caiamies of nsurrection will ere long be
come satisfied that order peace and securitv for al
rights OF property and for all personal and politica
rights in the Union and under the Constitution are pre
ferabe 10 the disorder and conflict insecurity neces
sary incident to the attempts to subvert the Cavern
men break up the institutions and destroy the nation
ality by force and violence.
When under the influence of this reasonable conric
"n, the people C the several States constrained h.
the criminal folly of political partsans into civil wa
against tue Union, shall in their turn co1srAn thrs
rSans TO loyalty 10 law and obedience to the Constitu
on Is not unreasonable 10 expect that with
| Union will not merely renewed nrosnsr;tr hn
prosperity renewed in degree and measure withou
parallel in the past existence of our country
Whhe recommending the changes in the existing tart
and other revenue measures which seem to him neces
| sary. the Secretary INDUCES:
confident expectation that they will ultimately nrov
"hoy auequaee 10 All reasonable demands for ordinar
expenditures tor the payment of the interest and for IN
reduction Of the public debt, and that they will more
over, De e. estaoshlng national credit sure founda
tons wiz contribute IN no lnconsderahle degree to tina
revival of trade and industry which by its healtbfu re
action will in turn essentially promote the increase an
| security of revenue.
| The sources of revenue most promDt1v 20 ba x,,l
available must he sought, doubtless in the articles no,
| exempt from duty, or but lightly taxed Nearly al
these articles have heretofore contributed in fuI
ure to the national income. 1t was only when the drht
contracted in former for the establishment of ON
national independence or the vindcaon of our naona
rights had been fully paid and the had increase
largely beyond any legitimate uses of the
then 1t WAS thought proper the duties on som
OF them, and largely reduce the duties on others TIA
intelligent patriotism which cheerfully sustained tn
former charges will cheerfully sustain tbos
ale necessary for the preservation of our
Union and the maintenance of the sovereignty of the
| pie. Ofthe articles now lightly taxed sugar and a
those wholly exempt from duty, and coffee are tn
most important. "'1 :"
The Secretary most respectfully proposes to Conrres
tna duty of2 cents per pound be laid brown sugar
of cents per pound clayed sugar of cents
on loaf and other refined sugars OF cens per po,nd n
the syrup Of sugar of per pound on candy
cents per gallon on moasses; and of cents per
Ion on sour molasSes and it is also proposed that du
OF cents per pound be imposed coffee; Is cents De
pound black tea and 20 per pound on tea
From these duties is estimated that an addtona
nue. of not lest than $50 O0O annually NAV be
while the burthen Of this upon our own propI
will be to considerable degree mitirated b
participation the of foreign producers Withou
going here into other details of less importance tn
Secretary thinks it proper to add in general tina
| from the proposed duties articles non-exemp
| and from changed duties articles now eithe
| lightly burdened or so heavily taxed that the ia
amounts to prohibition, further increase of re
venue to the amount OF 100000 may be anticipated an
that the improving condition trade and industry war
rant just expectation that the from the dutie
the present tariff not affected by the propo changes
will not fall short of $50 600 900 He estimates therefor,
the total revenue from imports during the present
s57 OOO which may be added the sum of "A 6oo mn
be derived from the sale of public lands and
laneous sources making the total revenue for the vea
Sc 900, 900. While, therefore, there is every reason
believe that under modified tariff when the prosper
of the country shall be fully restored an annual
Of not less than $4,000 000 and probably more mayb
realized II wall be necessary in order to fully tn
public credit 10 provide for raising the sum of $40 0gO
600 for the current year at least by direct taxes or for
internal duties or excises. or from both.
The Constitution requires that the former be appol
toned among the States in the ratio of the federal popu
laton; the latter need only be uniformed m
United States The taxes real estate and perhaps m
general taxes on personal property therefore be
poroned. Taxes distilled liquors on bank rores n
carriages and similar descriptions property must nc
be higher in State than taxes the same articles
| another State
The Secretary submits the superior wisdom of Cor
gress the determination of the question whether the
snail ne made to direct taxes to internal duties
both for the supply of the probable deficiency of tba
portion of the public resources which, upon the pripcipe
| already explained must be furnished bv tayaton