, 1861-07-10

afge EQm5 required Tor ordinary expenditure
md by the existing emergencies, it is quite |
or ordinary disbursements, will not be ade- |
luate. |
The deficiency Of revenue, whether from
imports or other sources, must necessarily be |
supplied from loans, and the problem to be !
soiyed Is that Of 60 propoltioning the former
both, that the whole amount needed may be |
obtained With certainty, with due economy,
with the least possible Inconvenience, and with |
The greatest possible Incidental benefit to the
people.
The Secretary has given to this Important |
subject the best consideration which the uI-
gency Of his varied public duties las allowed,
and now submits to the consideration Of Con-
gress, with great Difference, and no little dis
trust OF his own Judgment, the conclusions to
which he has arrived. He is Of opinion that
$50 600 should be raised by taxation, and TIM.
ss240, ,000, 600 should be sought through loaus.
1t will be hardly disputed that In every sound
ton for the prompt discharge Of all ordinary
demands for the punctual payment Of the
interest on loans, and for the creation OF a
gradually increasing fund for the redemption
Of the principal is Indispensable Public credit
ean only be created By Pnblie faith, and public
energetic and prudent administration Of pub:
lie affaira, and by the prsmpt and punctua}
1ulflment Of every public obligation. 1t has
been already stated that appropriations for
the ordinary expenditures for the flscal year
OF 1863, including the permanent and inded-
nite descriptions, amounts to S658SISf, and
the intereet to be paid on the debt to be In
Cured during the year has been estimated at
80, Goo, ,0o0-making an aggregate OF ordinary
expenditures Of 81, ,887 ,54493 81. If to these
sums be added s5.000,000 as a provision for
the reduction and extinguishment Of the pub
lie debt, the total will be S79, ,Ss7, ,S49,3A.
HOW TO RAISE TIE MONEY.
To provide for these payments, 1t is pro-
posed, In aeenrdsuce with tho principle ust
stated to raise byc cimposts npo t. and taxation, at
the choice Of revenue adequate to the puT-
poses just indicated, the attention Of the
Secretary has been necessarily drawn to the
different modes Of taxation authorized by the
Constitution. The choice is limited to duties
on imports, direct taxes and internal duties,
or excise duties on imports, constitute the
chief form of indirect taxation. Direct taxes
include capitation taxes, taxes on real estate,
and probably general taxes on personal prop
erty, included in Lists embracing al de8crip-
tions, and valued by uniform rule, while IN
may be included all taxes on consumption,
aud taxes on special descriptions Of personal
property, with reference to use rather than
value.
The principal advantages Of the system of
direct taxes are found In the sensibility with
which they are felt and observed, in the mo.
tiyes thus arising for economy and fidelity
in the administration, and in the manifest
equity Of distributing burdens in proportion
to means, rather than in proportion to con-
sumption. On the Other hand, the advantages
Of indirect taxation by duties on imports arc
eility Of payment, in the adaptability to the
encouragement Of Industry =; md, above all, in
the avoidance Of federal Interference With the
finances of the states, whose main reliance
Tor revenue for all objects Of state administra.
sion must necessarily be upon leyies upon
property. These considerations have, doubt
lass, determined the preference which has al
Ways been a7inced BY the people Of the Uni
ted States as we'll as by their legislative and
executive, for duties on imports, the the chief
source ofnationa1 revenue. Only on occasions
Of special exigeDcy has resort been had to di-
rect taxation, or to internal duties OF ex.
else,
No departure is proposed BY the Secretary
frcm the the line Of policy thus sanctioned.
He ventures to recommend only such modifi-
cations Of the existing tariff As will produce
the principal part of the needed revenue, and
such resort to direct taxes on internal duties
as circumstances may require, In order to
to exist.
The sources Of revenue most promptly to be
made available, must be sought, doubtless, in
the articles now exempt from duty, or but
lightly taxed.
That intelligent patriotism which cheerfally
sustained the former charges in time Of war
will even more cheeEfully sustain those made
necessary now for the preservation OF our Ma
tioual Union aud the maintenance OF the SOW
ereignty Of the people. OF the articles now
ffnhS3 Tow o111 fnF fh1cn rho}4vt
eMpt from duty, tea and coffee, are the most
important
the 9ecretary most respectfully proposes to
Congress that duty Of 3 cents per pound be
laid on brown sugar of 8 cents per pound On
clayed sugar, of 4 cents per pound on loaf
pond on the syrup OF sugar cane; of 6 cents
per pound on candy; Of 6 cents per gallon on
molasses; and Of 4 cents per gallon on sour
molasses; and it Is also proposed that a duty
Of S cents per pound be imposed On coffee; Is
cents per pound on black tea, and 20 cents per
pound on green tea From these duties il is
estimated that an additional revenue Of not
less than &C, OK, 600 annually may be raised,
while the bu1then Of this revenue upon our
Own people will be to some considerable de
gree mitigated by participation on the part
OF the foreign, producers. Without going
here into other details Of less importance, the
Secretary thinks 1t proper to add, in general,
that from the proposed duties on articles non.
exempt, and from changed duties on articles
now either Lightly burdened, or SO heavily
taxed that the tax amounts TO prohibition, q
further increase Of revenue to the amsunt Of
$1,000 600 may be anticipated; and that the
improving condition Of trade and industry
from the duties Of the present tariff, not af
fected by the proposed changes, will not fall
short OF Sc, ,O00, ,O00 He estimates therefore the
total re!enae from imports during the present
year at e57, goo 00o, to which nay be added the
sum OF 81, ,0o0, GOO, to be derived from the sales
of the public lands and miscellaneous sources,
making the total 1eEenue for the year sc; 900, :.
CO.,. While, therefore, there Is every reason
to believe that under modified tariff, when
the prosperity, Of the country shall be fully re-
etozed, an annual revenue Of not less than
Ss0, 900 yQ00, and probably mora may be realized,
it will be necessary, In order to sustain fully
the public credit, to proYide for raiaing the
sun Of 10000, GOO for the current year, at
least BY direct taxes, or from internal duties
or exciees, or frem beth.
b y = UNIFORMITY OF TAXATION.
The Constitution requires that the former
be apportio1ed among the States, In the rat1o
of the Federal population; the latter reed only
be uniformed throughout the United States.
The taxes on real estate, and perhaps the gen
eral taxes on personal property 9n:f t,,a9 thsTs +;
.quorB, on bank notes, on carriages, and similar
descriptions: Of property, must not be higher
In one State than taxes on the same articles In
smother State.
The Secretary submits TO the superior wis
dom Of Congress the determination Of the
question whether tho result ahxll be made to
direct ta1es or to internal duties, or both, for
the supply Of tho probable deficiency Of that
portion Of tho public resources which, upon
the Principles already e1Piained, must DO fur
utahea BY taxation. ::
Taxes ON RNAI. AND pHRa0HAL PRoPERTI.~
1he value OF tho real md fersonA properly
Ct Ih pHDpla Ct thn IInited HtAfaa srcnf3inr