, 1861-12-13

oftwo @essfiptieaE |di1st; i jdFfet u d 0,f
uonOelS Sof which lid GAG 6O16 Has 4ppprhoned |
10 etass and Territories. aeEnoH1ede e4ng their
obligations to the Union, md IS, 159 &a. to. |
States the cltizenEof which npuaiate those
obligations, and .nrc in open rcbelilons and, /
secondly, an interna1 duty Of three centnm |
ON ~ annual Incomes, with certain exceptions
and Deductions, '=:.' /
As i II highly desirable to aTold;; aslong IS
Rrasens7epas Rsa7 introauction into the states 81 9f
lection Of taxes, the Secretary, relying On as
surances from Governors Of the various StatcE
TINT theamounts apportioned to them respect
ively Will be assumed, collected and paid,
through eSlstlns State agencies, las hishefto
. the officers necessary for zdheEt asses5ment
and collection: He has been the more readily
persuaded to this course because both the In
come md the direct tax axe required TO be as |
asdse5 on 5 T Ffse Tafh = h ea
come tax after the first day Of january and for
the purposes of direct tax after the first day of
April next :. ,-,:~....> =
THE INCOME r41. - 4
:; The Secretary Is acquainted with no statfs-
tics which afford the means Of satisfactory
from the income tax Considering, however, !
how large proportion of Incomes, after the
deductions sanctioned BY laT, will fall within
the exemption limit Of $500 year, and con.
sidering also what numerous questions will :
certainly pelp1cx lis assessment and collection,
he respectfully submits to the consideration
Of Congress whether the probable revenue af-
lords sufficient reason for putting In opera
ton, at great cost, the machinery Of the act,
=; with a view, should the States assume the di-
alone.
The prudent forecast which Induced Con:
greEs to postpone to another year the neces-
sity Of steps for the practical enforcement Of
The. law, affords, happily; the opgoftunity-of
the opportunity Of comparing the amount Of
needed revenue With the probable income from
taxes Of every Kind, aud Of SO. shaping legis-
lation as to secure, beyond doubt, the sums
cssent1al to the fulhllment Of national obiga~
tioDs and the maintenance OF the national
credit.
/ INCREASING DIRECT TAX
In the judgment Of the Secretary, it will be
necessary to increase the direct tax SO rs to
p1odnce from heloyal states alone O revenue
of at least s20, 0,000, 600, and to lay such duties
on stills and distilled liquors, on tobacco, on
banks notes, on carriages, on legacies, On
paper evidences Of debt and Instruments for
conveyance Of property, and other like sub
jects Of taxation, as WN produce an equal ad-
ditional sum. The existing provision for an
income tax, just in Its principle, inasmneh as
means, may, possibly, and If somewhat modi-
fed, will, probably, produce SIC, ,000, 600 more
e. E5sooS65 o59ssfats taxation VIII thus amount to
The Secretary Is aware that the sum is large;
but seeing, as he docs, DO probability that the
| revenue from ordinary sources will exceed
$40, coz, GOO during the current year, and know
ing, as he does, that to meet even economical
| disbursements, and pay the interest on the
| public debt, and provide sinking fund for the
! gradual reduction Of its principal, the appro-
priation Of $50, ,000, COO will be necessary, he
\ 4not 80 n1,- ~ ~
statement Of the actual necessities Of tic sit
| nation.
THE $50 1000 rAx.
But if the sum is Large, the means Of the
people arc also large; and the object to be at
tanned by consccTation of portion Of them
to the public service is priceless. The real
property Of the loyal States is valued, in round
numbers, at seven nna ::half thousands Of
millions; the personal property at three and
/. half thousands Of millions; and the an-
nual surplus earnings Of the loyal people
at not less than three hundred millions Of dol
lars. Four mills on each dollar, or two-dfths
Of one per cent on the real and personal prop
crty Of the loyal States, wouId produce forty
four millions Of dollars, to which sum the pro.
posed income tax will probably add ten mil
lions. The whole sum will be little more than
one-siyfh Of the surplus earnings Of tho eoun
| try. Certainly such L tax cannot be paid
| without Inconvenience; doubtless the Lcgis
1aturc which imposes such tax must take
| care that the money thus raised be used cco1
onically, prndcntly, and honestly: But car
any ono hesitate about such or eren greater
contributions, when the Union and the popn
lar institutions which it guards arc put in peri
by rebellion, and tile public faith pledged tt
our citizens, who, in many instances. hayt
placed the whole earnings Of industrious live:
in tho hands of the Government for its sup
preston, ask support?
NECESSITY OF LOANS.
! It wil1 be seen at glance that the amour
to be derived from taxation forms but a snal
portion OF the sums required tor the expense
of the war. For tic rest, the reliance must b.
| placed OIL loans-
Already, beyond the expectations Of tt,
: most sanguine, the country has responded t,
. the appeals Of the Secretary. The mean
: adopted for securing the concurrence Of d
. Government have been already explained. l
G | remains only to be said here that while tn
: action Of the banking institutions in assuming
7 the immediate responsibility OF the whole ad
s vances hitherto required, as well as the fina
responsibility Of much the largest portion c
them, merits high eulogiuuaa The prompt pat
riotism with which citizens o4moderate mea1,
: and workingmen and worlngWtIneu hay
:, brought their individual offerings to the sel
u vice Of their country, must command eyc
9 care Of the National Legislature and Of th
0 National Government Iii all It's department
x TINT the generous confidence reposcd by th
0 poor as well as by the rich in the public fait
: be never disappointed
It must not be concealed, however, that th
Y condition Of the national finances when th
$ present Secretary entered upon the duties (
G bis Office, though somewhat improved du
: ing the able and upright, though brief, az
= tuinistration of his Immediate predecessor
: was such as to make disadyantageous rates
I the negotiation Of loans inevitable. 1T AFFORD
Just occasion Of gr:atu}ation that, under mos
U Embarrassing circumstances OF shaken cred
y | and immense demands, loans have been G
u fected at home, without. resort to any forclg
+ market, to the amount Of $4,000. .00o, with
Y virtual engagement for s50, ,0o0, 600 more,
u an average rnte, considering the conversion
= the three years $50 bonds into twenty year
= six per cent. bonds as certain, Of somewh
9 9 less than 6lz per cent.
II This rate Of interest is, however, higher til:
v the United States, with their vast and accl
u mulating resources, ought to pay. No doui
y reasonably exists that, after the re-establis
J. nlent Of Union and. order, the per cen
D. bonds Of the United States will command
d premium in the markets Of the world, unle
;, the national debt be, meantime, augment
10 beyond necessity or reason. The wealth al
T. power Of the country, manifested in the su
J, preston Of rebellion, will demonstrate t
!, L. absolute safety Of Investments in United Stat
Il lo stocks; and foreign capitalists, restricted
b the lower interests and thc inferior security
e public debt in other countries, will be attract
= by the supcrioradyantages offered by the 1oa
Of the Union
WAYS AND MEANS.
To enable the Government to obtain the I
It, cessary means for prosecuting the war to
Us | successful issue without unnecessary cost, il
N problem which must engage the most carr1
attention of the legislature.
as The Secretary has given to this problem t
oy best consideration in his power, and now be
Of leave to submit to Congress the result Of I
C. reflections.
at The circulation Of the banks of the q nit
n Statcs, on the 1st day Of January, 1881, #
st computed to be $202, ,000, ,767. OF this circu
q, tion SIC, coo, 900. in round numbers, was
i, States now loyal, including West Virgin
c. and s50, ,0O0, 600 in the rcbell1ous States. 7
III whole of this circulation constitutes a 10
at without interest from the people to the banl
n costing them nothing except the expense
T. issne and redemption and the interest on t
OF specie kept on hand for the latter purpos
its and It deserves consideration whether sou
be policy does not require that the advantages
this loan be transferred, in part at least, fre
he the banks, representing only the interests
It's / the stockholders, to the Government, rep
ue senti1ng tho aggregate interests Of the whs
n people.
ii. II has been well questioned By the mt
ne eminent statesmen whether a currency
Ia bank notes, issned By local institutions uni
State laws, ls not, in fact, prohibited by
pi- National Constitution. Such emissions c.
Of tainly fall within the spirit, if not within
lc, letter, OF the constitutional prohibition OF
sa- emission Of bills of credit By the Suites, a
To- of making By them Of anything except &
n and silver coin legal tender In payment
sb- debts.
mt However this may be, it Is too clear to
lie reasonably disputed that Congress, under
N constitutional powers to lay ta3es; to regt11
icy commerce, and to regulate the value Of co
! rfv 4n