New-York daily tribune., 1861-07-07
Documents accompanying the Presi-
dents Message.
REPORT OF THE SECRETARY OF THE
TREASURY.
TREASURY DEPARTMENT, .o.,
Washington, July 3, 1861. )

a
ment of every session, report on the suoJec. %
finance containing estimates of the pubic revenue
and publi, expenditures and plans for improving ana
increasing the revenue. ~, :.
This duty, always important and respcnnbe, u poW
rendered donbly important aud responsible by the pc
uliar circumsances under which the present session
Of Congress Is held. t,L c,o,as
vast conspiracy against the Union o. OF tne olaaes
and the very existence Of the NatlOnal GoVeripen'
which has been gathering strength and preparing nos
ttiss in secret for many years, has at length broken
out into fagraDt violence and mas assumed pr
lions 20 serious that an extraordinary exerion oil he
public force creating extraordinary dehdnus upon tuo
bubble resources IL required Tor hs speuy Jan,
pste discontinue and suppressiDg In the JuugueLhe en-
of the Secretary the ceaTest understanding Oh tho
actual condition Of the public finances, ana OF eng
measures demanded by its exigeneles VIII oe o1''eu
by considering the whole subject under 'ne iOno""S
general heads IL
First; Tie balance arising from tie receip's % anu
expenditures of the seal year leoi ending Oh ine 'V'
of June n .;;,o
rrJer ey;ino appropriations and created by the new
year 1860 exgcnces for which provision IL 10 be made
during the liscal year. .,.- r.. 49, IL
mands and the means available for that purpose.
As TO the first and second branches, the Secretary
shows an aggregate of appropriations already made OF
s7g7lU,S10 0S. He proceeds:
The additional estinates herewith submitted for the
service of the fiscal year ending June 80 le6 inelnd'
ing the deficiency caused by the appnc'ion oi soI'o
$50 06 to the service Of the preceding year, VIII re-
quire additional appropriations For list foreign
intercOuse and miscellaneous objects So3l $50 yV Ior
the Interior Department Sl3l 525 20; for the war De-
partment $ls5 1917 ~; for the Navy Department
$3O coo so 49, in the aggregate, SLY l6SsJ0 To- In
addition 10 tbese demands upon the Iressnry II VIII
he necessary 70 provide for the redemption OF the
Treasury notes dne and maturing, to the amount oil
s2 639S S6l Ca and for the payment o the interest on
lie public debt to be created during the year, which,
conpued for the average Of the Blk months, may be
estimated at 81 9,OOOCOO. ,
Alter further figuring, the Secretary says the whole
amount required ior the fiscal year OF 1867 may hefe-
fore be stated at 1918 ,5ol ~.
will be seen that in the foregoing estimates no
pro lion for the interest the existing puble debt
specifcaly appears. The omitslon Is only apparent,
the estimate for that interest being included in The sun
Of nearly OOOO already appropriated for the year
1862.
On the third branch, viz: the Ways and Means, the
Secretary SAYS To provide the large sums uired for
ordinary expenditure and by the existing emergency
il il quite apparent duties on imposs the CHEZ resource
for ordinary disbursements, will not be adequate.
The deficiency OF revenue, whether from imports or
other sources must necessay he supplied from loans
aud the problem TO be solved is that OF 20 proportion
ing the former the latter, and ~ adjusting the de-
tails Of both, that the whole amount needed may Je
obtained with certainty, with due economy, with the
least pOsslbe inconvenience, and with the greatest
Iosiible incidental benefit 10 the people.
The Secretary has given 10 this important subject
the bes consideration which the urgency OF his varied
public duties has allowed and now submits 10 the
.,i.r,ion Of Congress with great difference, and 10
little dstIu-t Of is own Judgment, the onelqsions TO
which be has aiTiye1. ue is Of the opinion thai
sSOUO000 should Do provided by taxation, and that
900 90 00 should be sought through loans. 1t will
hardly be disputed that In every sound system o,
finance adequate UfovsOn by taxation for the prompt
discharee Of all ordinary demands for the punctua pay
ment OF the interest loans and for the CREATION oi
gradually increasing fund for the redemption OF the
principal 10 indsI Public credit can only lie
created by public fsith, and public ian can only he
maintained 6y an economical, energetic and prudent
administration Of public aias and by the prompt and
punctual fulillmeBt OF every public Obligation
II has been already stated that appropriations Tor Tue
ordinary expenditure for the tscal year OF lo lh
clndinQ tho permanent ana indefinite descriptions,
aounts 10 8 5i9 81 and tie interest 70 be paid on
the debt 10 b. incurred dI ing the year has beeu es-
mated at 81 0O0O00, making an aggregate oi ordi-
nary expenditures OF si o si9 81. III 10 these sums
be added g. 0JO,0OO a. provision ior tie reduction
and final extin gushmsnt OF the public debt the total
will DO SO SS7 $40 81. To provide for thehe payments
il is proposed, in accordance with tue principle us
stated, 10 raise by taxntiOn AT lea,t the sum OF
$50 600 coo. In considering the choice OF revenue
adequate TO the purposes Just Indicated the attention
Of the Secretary has been necessarily drawn TO the
different modes Of taxation authorized by the Conttl-
tution The choice is limited to dnts on mI orts dl-
rect taxes and internal duties or exeises. Duiies
ON imports constitute the chief form Of Iudi-
rect taxation Direct taxes include capitation taxes,
taxes real estate, and probably general taxes on
1ersOnal property included In lists embracing all de-
scrirtions and valued by Uniform rule, while under
the head Of internal duties aud eXGses may be incld
ed all taxes consumption, ana taxes special de-
scTptiOns of personal property, with reference 70
rather than value. The principal advantages Of the
syfem of direct taxes found in the seusniity with
which thoy are felt and observed in the motives
arriving for economy aud fidelity in the Admipistra.
tion and III she manifest equity 0i distributing bur-
dens in proportion 10 means, rather than In proportion
to com umption. On the other hand, the advanta-
ges of indirect taxation, by duties on imports
are found in the economy OF collection, IN the facility
Of payment, In the adaptabty 10 the encouragement
of industry, and, above all, In the avoidance Of Fed
era interference with the finances Of the States those
main reliance for revenue for all objects OF State Ad-
mDstration must necessarily be upon loves on prop
erty. These considerations have, doubtless, deter.
mined the preference which has always been eyinced
by the people of the United States, as well as by
their legislative and executive, for duties on Imports
as the chief source oi national revenue. Only Oe-
casons of special eXigenCy bad a resort been had to
direct taxation, to internal duties or excise.
No departure isProposed by the Secretary from the
line Of policy thus sanctioned. lie ventures 10 recon-
mend only such notifications OF the existing tariff
will produce the principal part Cf the needed revenue
And such resort TO direct taxes on internal duties
as circumstances may require IN order 70 make
good whatever Of duties may be found TO exist.
That the present tariff Of duties wall not pro-
duce the re venue required by sound principles Of
finance under existing circumstances Is proposition
which will command general assent IL was formed,
indeed with reference 70 very different condition of
afsrs Thereceps Tor the last quarter Of the fiscal
year Just closed were only S. 27 246 So and though
very considerable Improvement in the revenue,
may be confidently anticipated for the cur.
rent fiscal year, should no change he made
IN the rates OF duties, it viii be inadequate beyond
doubt TO the demands OF tie Treasury, which should
be provided for without resort To loans. These de-
ands as has been already stated viii reach she cum
of 1885,, $40 a. sum no. greater, perhaps, than
NAV be reasonably expected Ia prosperous years.
from a well-adused tariff OF dlties, though greater
,hn,, con rl,ru L. eNIocL Id from ANY Iarle