The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-07-07

to be forearmed. Let us be thoroughly pre-
pared for the worst, and when the worst comes
it cannot take us by surprise.
The First War Budget OF the Govern
ment.
The report Of the Secretary of the Treasury
II not as comprehensive and able document
as we were led to expect, has at least the merit
of placing clearly before Congress the necessi-
ties for which it will have to legislate. Ac-
cording to Mr.. Chase's estimates, the whole
amount required for the fiscal year of 1862 will
be $318.5l9,5Sl. OF this, $780, 800 js
for the War Department, aud $30,6O9, $50
for the navy-makipg together, In round
figures, about $211, 100000.
To meet this extraordinary demand upon
the resources of the country, the Secretary
Is Of opinion that $sOOoO,0OO should be
raised by taxation, and $4,000, 900
through loans. The former amount, he cal
culates, will be sufficient to cover the ordl-
nary expenditures of the government,
and the interest on loans which the public
credit requires should be provided for in this
way. As 10 the manner of raising 1t, he recon.
mends such notifications of the existing tariS
as will produce the principal part Of the needed
revenue, and such resort to direct taxes or In
ternal duties as circumstances may require, in
order to make good whatever of deficiency may
be found to exist. The sources of revenue
most promptly to be made available are to be
sought in the articles now exempt from duty
or most lightly taxed. He therefore proposes
that duty of 21sc. per pound be laid on
brown sugar, of &c. per pound on clayed su.
gar, of &C. per pound on loaf and other refined
sugars, of 2Hc. per pound on the syrup Of
sugar cane, of Sc. per pound on candy, of &c
per gallon on molasses, and of 4c. per gallon
on sour molasses; and he also recommends that
duty Of &C. per pound be imposed on coffee.
l5c per pound on black tea and zoe. per pound
on green tea.
II these imposts, and certain other modiaca-
tions in existing duties, which under the pre-
sent tariff amount to prohibition, be passed
by Congress, he thinks II may be safely esti-
mated that the revenue from imports for the
present year will amount to $57 ,000,0 900, to
which may be added the sum of $4,000, 900
making the total revenue for the year sec, 000,-
900. To raise the balahce OF $40, 900, 900, which
will be required to provide for the ordinary
expenditures of the year, a resort either to
direct taxation or Internal duties will be
necessary. 1t can be obtained, Mr. Chase
thinks, by moderate charges on stills and dis
titled liquors, on ale and beer, on tobacco, on
bank notes, on spring carriages, on silver
ware and jewelry and on legacies.
Tmo Mt N, nuoafiouo nffaroI e., kbo
port, although they do not enter into the eco
nomical calculations of the present year, will,
we hope, be at once acted upon by Congress.
One has reference to the abolition of the frank
ing privilege, and the other to uniform re-
ducton of ten per cent in all the salaries and
wages paid by the federal government. AS to
the expediency of the frst of these recon-
mendations there will not be dissentient
voice out Of Congress-; and as to the pro-
priety of federal office holders being made
to bear their fair proportion of the burdens Of
the war; we appIehend that none out of that
favored class will take exception to it,
To raise the S240, 900, 900 that will he requir-
ed to provide for the extraordinary expenses
of the year, Secretary Chase recommends
that Congress should authorize subscriptions to
be opened for national loan of not less than
500, 900 900, to be issued in the form of Trea-
sury notes or exchequer bills, bearing yearly
interest Of $40 per cent, to be paid half
yearly, and to be redeemable ct the pleasure
of the United States after three years from
date. Among the additional inducements
which this loan would offer would be the priv
lege of subscribing small sums above fifty
dollars. and of paying them by semi-monthly
instalments of one-tenth-thus affording the
industrial classes secure and profitable in
vestment for their earnings In addition to
the sums to be raised by national loan, and In
case it shall be found inexpedient to provide
the whole amount needed in that way, Mr..
Chase proposes that bonds or certificates of
debt of the United States be issued to lenders
in the country, or in any foreign country, at
rates not lower than par for sums of $500,
$1,000 and $4,000, not exceeding in the aggre-
gate $l00, 000, 000-said certificates to be made
redeemable at the pleasure of the government
after period not exceeding thirty years, and to
bear an interest not exceeding seven per cent.
The remaining $50000,OO0 needed to supply
the full amount required for the service of the
fiscal year is to be provided for by an issue of
Treasury notes for $40 or $40 each, payable one
year from date, to an aggregate not exceeding
the amount required. These notes will bear
interest ut the rate of 65-1OO per cent, and
4 nAo~ L. "a ILL e.