Litchfield enquirer., 1861-12-26
REPORT OF THE SECRETARY OF THE ,. TREASURY


 TREASURY. .
 The following comprehensive abstract of the able report of the Secretary of the Treasury was unavoidably crowded out from our last issue It will. however not be too late now to be Of ln- terest to those of our readers who have not seen it.:
 The report of the secretary of the treasury, after referring to the recommendations containea ;n inc ,nlv report gives the manner In winch loans have been obtained for the various purpo- ees of the government. The immediate exigen- cies were provided for by issuing $l4, ,019,034 in 6 per cent. two years treasury notes. and $l2,- s77, 7,75O in the same notes payable in sixty days. The next care was to provide for disbursements for the war, and the secretary adopted the plan to engage the banking institutions of the three commercial cities of the seabord, to advance the amounts needed, in loans for three years 7.30 bonds, to be reimbursed from proceeds of simi- lar bonds subscribed for by the people, hoping thus to combine the capital of the banks and the people with the credit of the government, so as to give efficiency to administrative action, and competent support to public credit. The result has fulfilled his 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 third loan was negotiated with the banks on the l6th of November, by which he agreed to issue to them fifty millions in six per cent. bonds, at par, for the bonds bearing seven per cent. ln- terest. This agreement was coupled with no ar- engagement for reimbursement and entalled no expense, except the preparing and issuing of bonds It was also coupled with all option to a. <b,t oft ho frsfo of a fourth advance of fifty millions should be made on the same terms as the first and second, if re- quired. In addition to these loans, $2l ,l65, ,220, up to the 18th of November, were issued in treasury notes, Of the denominations of $5, $l0 and SIP, payable on demand. and $3,385, ,l05 re- mained in the treasury. This may be regarded as a loan from the people. The aggregate amount realized from loans in various forms, is $l97,- 242,588. The revenue receipts have not fulfilled the expectations of the secretary. He says the act of modifying the rates of duties differed from the measure he submitted to Congress in most particulars. and especially in diminished duties on tea, coffee, and sugar, and exempting goods in warehouse and on shipboard. This difference was disadvantageous to the revenue, while po- tential cause of reducing receipts may be found in the changed circumstances of the country proving unfavorable to foreign commerce. These
 
 mates for the year 1862, from the revenue, from $57OOO,O0O to $32 e.6O2, and the estimate of the receipts from land and miscellaneous sources, he reduces from 3,0O000O to 2,354, 4,062.
 The only other source of revenue is the direct tax authorized by Congress, which. if increased to the limit proposed by the secretary and as- sumed by the states, the further sum of $2OOOO,- 900 may be expected The aggregate of reve. nue may thus be estimated, at $54, 1852, ,665, which is $25,447,334 less than the estimate of July The secretary states that his estimates of July were based on the supposition of raising 250,OOO volunteers, and increasing the army by II regi- ments, and after that report had been closed Congress authorized the acceptance by the pres. ident of 5O0,0 ,000 men, besides additional compa- nies and officers. This large increase has, and must necessarily, augment the expenditures far beyond the limit indicated by original estimates, which will be still further extended by the in- crease of the navy. and additional appropriations are asked for Of these additional appropria- tions $47 7,9Sl ,566 were authorized by the acts of the last Congress, and $l43,l3O,927 are now asked for, making an aggregate, including $22,- S97,933 for indefinite appropriations, of sS2l3,- 9O4427.
 To provide these large sums, retrenchment and reform arc indispensable. Contracts should be subjected to strict supervision, and contractors to rigorous responsibility. All unnecessary off ces should be abolished, and salaries and pay ma- terially reduced. While thus recommending re- trenchment, the secretary feels himself con strained to renew suggestions heretofore submit ted by him, that the property of rebels should be made to pay, m part at least the cost of the re- belion Property of great value in the disloyal states. is held by proprietors virtually engaged Tn guilty attempts to break up the Union. This is justly forfeited to the people, and should be subjected to sequestration or confiscation. and the proceeds applied to the satisfaction of the claims arising from war. The property of rebels in the rebel states should be treated in the same way. Rights to services under state laws, must ot necessity form an exception to any rule ot contiscation. Persons held by rebels under such laws to service as slaves, may, however be justly liberated from their constraint, and made more valuable in various employments, through voluu- tary and compensated services, than if confsca- ted as subjects of property.
 The secretary adds that the most sacred duty of the American people now requires the conse- cratlon ot all their energies and resources to the establishment of the Union, and sound policy would seem to suggest not an extension of for elgn trade, but a more absolute reliance on American labor, and American skill, and Ameri. can soil that the duties on tea, coffee and sugar be increased to ? 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 to increase the direct tax so as to pro. duce OOO, and laying such duties on stills, distilled liquors, tobacco, bank notes, carriages legacles on paper, evidences of debt, conveyan- anees of property, and other like property, as Will produce an equal additional sum. The in- come tax will probably produce $l0,OOO,OOO more, making an aggregate of $50,0OO OOO. The secretary IS aware the sum is large, but seeing no probability of a revenue exceeding $40, ,OO0., OOO during the current year, he feels that he must not shrink from plain statement of the actual necessities of the situation. Two-6fths of one per cent. on the real and personal property of the loyal states will produce $44,OOO.O00, the proposed income tax adding $lO,OOO,O ,OOO.
 The secretary also recommends plan for q national circulation of notes, the features of which are circulation of notes bearing a com mon impression, and authenticated by common authority. These notes will be redeemed bv as. sociations and institutions to which they may be delivered for issue. and the security of redemp- tion will be realized by pledge of United States stocks and an adequate provision of specie. An important advantage to the people by this plan would be in the increased security of the Union, springing from common interests in it's preser. vation, created by distribution of it's stocks to