Worcester daily spy., 1861-12-11


provided for by issuing Sl40l9,034 IN 9 per
cent two year treasury notes, aud Sl2.S1775O
in the same notes payable in sixty days, HIS
next care was to provide Tor the disbursements
for the war, and he adopted plan TO engage
the banking institutions OF the three commtr-
cial cities OF the seabOard To advance the
amounts needed, in loans Tor three years lO
bonds, to be reimbursed from the proceeds OF
similar bonds subscribed Tor by the people;
hoping thus to combine the capital OF the
banks and the people with the credlt oi the
government, so to give efficiency to the ad
ministrative action and competent support TO
the public credit and the result has fulfilled
the hope. He then rehearses the agreement
entered into between the banks and himself
by which the former agreed to take the loans
The history of the first TWO loans has been
made public. The thld loan was negotiated
with the banks on the 10Th Of November by
which lie agreed to issue to them SoO,OOO,OOO
in 6 per cent )nds, at par, for the bonds bear
ing Z per cent interest This agreement was
coupled with no arrangements Tor reimburse
ment and enailed no expense except the pre-
pairing and issuing OF bonds. uls was also
coupled with AN option to the banks, that, on
or after the Is OF January, fourth advance
OF S5000,000 should be made on the same
terms as the first and second, if required. IN
addition to these loans, S2l l65, 22O up to Nov.
80, were issued in treasury notes OF So, SO,
and $40, payable on demand, and So 3o5, lU5
remained in the treasury. This amount may
be regarded as loan from the people. The
aggregate realized in the loans, in various
forms, is Sl97 242,5S
The revenue receipts have not fulfilled lis
expectations. He says an act modifying the
rates OF duties differed from the measure he
submitted TO congr, sa in most OF these parllc'
uiarS, especially in diminished duties on tea,
coffee, and sugar. and eXemptlng goods IN
warehouse and on shipboard. The difference
was disadyantageous TO the revenue, while
potential cause OF reduced receipts may be
found in the changed circumstances Of the
country, they proving untavorable 10 foreign
commerce. These circumstances compelled
him to reduce his estimate for 1867 tor the
revenue from S57 ,000, 900 to S32, 1875, CO., The
estimates from the receipts from lands and
miscellaneous sources he reduces from 80 000,-
900 to S2354,062 The only other source of
revenue is the direct tax authorized by con.
greos, from which, if increased TO the limit
proposed bv the secretary and assumed by the
states, the farther SUM of $50 100000 may be
expected, The aggregate OF revenue may
thus be estimated at S54 552, ,665, which is
S25 447 1884 less than the estimate of July.
The secretary states that his estimates of
JGly were based on the raising of 250,0OO
volunteers and the increase of the army by
II regiments. But after that report had been
closed congress authorized the acceptance by
the president Of 100000 men. Besides the
additional companies and officers, this large
increase has increased, and must necessarily
augment the expenditures far beyond the
limit indicated by the original estimates, which
will be still further extended by the increase
Of the navy and additional appropriations are
asked for. OF this additional appropriation
SIT ,9S5576 were authorized by the acts OF the
last congress, and Sl43, l3O,927 are now asked
tor, making an aggregate, including SD, ,707,-
933 for indefinite appropriations, OF S2l3. .9O4,-
427. To provide these large sums retrench-
ment and reform are Indispensable. Contracts
should be subjected TO strict supervision,
and contractors held to Il rigorous responsible
ty. All unnecessary offices should be ab0l
ished, and salaries and pay materially reduced.
While thus recommending retrenchment he
feels nself constrained 10 renew the sug-
gcstions heretofore submitted by him. that the
property OF the rebels should be made to pay
in part at least the cost of the rebellion. Prop
erty of great value in the loyal states is held
by prOpretors virtually engaged in guilty
attempts 10 break up the Union, which is justly
forfeited TO the people, and should be subjected
to sequestratiOn or cCntscati0n, and The pro
ceeds applied TO the satisfaction Of claims
arising from Tie war. The property OF the
rebels in the rebel states should be treated in
the same way. Rights to service under the
state laws must OF necessity form an exception
to any rule Of cUufscation. Persons held by
the rebels under such laws to service as slaves
may, however, be justly liberated from their
conStraint, and made more valuable in various
empIoyments, through voluntary and compen-
sated service, than il contscated as subjects
OF property.
The secretary says the most sacred duty of
the American people now requires the conse-
Grafton of all their energies and resources to
the establishment Of the Union, and sound pol
icy would seem to suggest not the extension of
foreign trade, but the more absolute reliance
on American labor, American skill, and Amer
lean soil. He recommends that the duties on
tea coffee, and sugar be increased, q cents
per pound on brown sugar, cents on clayed,
20 cents on green teas, cents on coffee, and
that no other alterations TO the tariff be made
unless further experience shall demonstrate
the necessity. He deems it necessary 10 in.
crease the direct tax so as to produce from the
loyal states revenue Of at least $50 000, ,000,
and laying such duties on stills, distilled Ii
quors, tobacco, bank notes, carriages, legacies
on paper evidences of debt aud conveyances
of property, and other like property as will
produce an equal additional sum. The income
tax will probably produce $4,000, 900 more
making an aggregate of $50 900, 900 The Sc.
cretary IL aware the sum is large; but seeing
no probability of the revenue exceeding S40,-
100000 during the current year, he feels that
he must not shrink from plain statement of
the actual necessities of the situation. Two
fiihs Of one per cent on the real and personal
property oi the loya states will produce S44,-
100000 the proposed income tax adding $40.
600 600.
The secretary recommends plan for the
national circulation OF notes, the features of
which are circulation of notes bearing a
common impression, and authenticated by
common authority the redemption OF these
notes by associ tions and institutions to which
they may be delivered for issue, and tie ae-
curity Of that redemption by the pledge of
United States stocks and an adequate provis-
ion Of specie. An important advantage 10 tie
people By this plan would be in the increased
security of the Union springing from the COM
mon interest i'll its preservation, created by the
distribution Of its stocks TO associations
throughout tie country as basis Of circula-
ton. And he entertains the opinion that if a
credit circulation be desirable, This is its most
desirable form. He says it is earnestly hoped,
not without sufficient grounds that the present
war vii! be brought 10 an auspiCious termina-
ton beiOle midsummer, and in that event the
provision OF the revenue by taxation will am
ply suffice for all financial exigences without
additional loans. and enable the government
at once to begin the reduction of the existing
debt. ii the war continues to July l. 1862
The public debt will be S5l7 ,372, 802; il Till
July /, 1868, it will be in round numbers
S9O0,000,000.
The prohibition of trade with the rebel
states has been fully enforced Regulations
have been established by which cotton, rice,