The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-12-10

Oh ING ono Ranu, anu 6uch confidence among
Southern Union men on the other hand, as u
bring about speedy and overwhelming Union
reaction from Virginia to Texas. We await
with confidence the development Of General
McClellan's plans, and both houses Of Congress
will act wisely in leaving the direction of our
armies to his wisdom, skill and discretion.
| Report or the Secretary or tho Treasury
| Important Changes in Our Fiscal sys-
tenn.
| We publish this morning the anxiously ex-
| pected expose Of our financial condition by tie
| Secretary Of the Treasury. We use no terms OF
| exaggeraton when we say that it is one OF the
ablest and most carefully prepared statements
Of the kind that has ever been laid before Con-
gress. II has this merit, SO rare in the schemes
Of government fnancicrs, that while it refra.rs
from pushing taxation beyond the limits Of pru
dence, ii makes q salutary and long desideraed
reform contribute large amount Of the reve
nue. required to meet heavy war expendi-
ture.
In expressing his conviction that duties on
imports cannot be relied on as source Of reve-
nue. sufficient for tie proper objects Of taxation,
Mr.. Chase administers to England well merit
ed rebuke and warning. While other nations,
he says, look with Indifferent or unfriendly eyes
upon our efforts for the re-establshment Of tho
| Union, sound policy would seem to suggest,
not the extension of foreign trade, but
a more absolute reliance, under God
upon American labor, American skill and
American soil. Freedom Of commerce is in
| deed wise and noble policy, but to be wise
| and noble ii must be tho policy Of concordant
and fraternal nations. In accordance with
| these views, he recommends that the duties on
| tea, coffee and sugar be increased TO the rates
| heretofore proposed, VITO two and one half
cents per pound on brown sugar, to three cents
clayed sugar, to twenty cents per pound on green
tea, and to five cents per pound on coffee These
are the only alterations he thinks should be
made in the tariff in Che present Congress, con
| sideratons of prudence and patriotism concur
| ring in favor of giving it fair trial
| Up to the present time the government has
borrowed from the people, for the purposes Of
the war, S197 ,242,5 sS. For the fiscal year
terminating July l, 1862, the Secretary requires
S543,406,422. He has authority to borrow
s75 449 ,675, which, with the amounts already
received and to be raised from customs, land
sales and direct taxation, makes total Of
receipts Of 1925, sol ,S94-leavng a deficit
of S2l39O4,427 to be provided for. or
this amount Mr.. Chase proposes to get
Sl5O,O00,0 900 by substituting for the pre-
sent bank currency Of the several States
federal Gu rency, secured by United States
stocks, ana rcdeemable in coin on presenta-
ton This will place the currency OF the coun-
try on the same solid basis as that of the State
of New York, while at the same time it secures
all the advantages that would accrue from the
establishment Of national bank, without being
subject to any OF the risks attaching to such an
institution We have in the history of the Bank
of England an example of the perils to which
such establishments are periodically exposed by
their combining the responsibilities Of private
banking business with those of a national cur
rency. The plan proposed is, in fact, equiva-
| lent to loan to the government without inte-
rest. while it establishes uniformity in paper
| issues-the want most felt in this country. II
offers these additional recommendations, that it
will create large demand for government Sc
curites, and present increased facilities for OBJ
tanning the loans required by the war.
| Last session an act was passed providing for
| the raising, by direct taxation, of the sum Of
| $4,000 900, of which 100000 was appor-
| toned amongst the loyal States Mr. Chase
proposes an alteration Of tina. enactment in
| three points,
| |. That the direct taxes in the loyal States
alone shall be made to yield S2O,OO000o.
| q That the duties on liquors, tobacco, &C.,
be made to produce another equal sum of
s2O,OoO,o0Q.
| g. THAI Nhe income tax shall be made to
yield slO,0OO,0 900.
This gives total income from these three
| sources of s50,000,000. The requirements and
resources of the government will then stand
| thus
Total sum to be provided for. s213, 9O4 APT
To be raised by taxes $50, 900
| BY currency. .......... 50,0OO,OOO
zoe, 900 900
Deficit. $l3, 9O4 ,457
! This deficit is, however, merely nominal; for
| in the amount estimated for expenditures
| 2,S7O,39S is set down for public debt,
payment of considerable part Of which will
not probably be demanded, and some expenses
are estimated which may be retrenched; so
that the whole amount of loans required in
addition to the amount already authorized
will certainly not exceed s2OO,o0O,oOO.
For the fiscal year Of 1868 no reliable esti-
mates can be made. Mr.. Chase is Of opinion
that the war will be brought to close by mid
summer-an anticipation that the present posi-
ton of our affairs fully justifes. The rebels
are now closely hemmed in on every side, and
the completion of our preparations will soon
enable us to make a general advance and liber-
ate the Union sentiment in the seeded States,
the element on which, more than on our arms,
we have, after ALL to rely for prompt termina-
ton of this unhappy struggle Surprising,
however, that these expectations are disap-
pointed, the estimated aggregate expenditure
of the several departments for 1868 will be
S47533l, 425. The public debt on the lst
Of July in that year, on the scale of expenses
s1,a = A