Indiana State sentinel. (Indianapolis, Ind.) 1861-1865, 1861-06-26
Government Financial Policy.

The best method of raising the ways and means
for carrying on the Government, and providing
for the extraordinary expenses pressing upon the
Treasury, is probably the most important topic
now occupying the attention Of the Admnstra-
ton. The estimates of the wants of the Govern
ment during the current calendar year, range
from two hundred TO three hundred and sixty five
million dollars. If we take the sum of two hun
dred and fifty millions as the basis of calculation,
we shall doubtless come within the true total
The receipts for customs at all the ports Of the
United States during the fiscal year ending June
Goth. 1860, were $23. ls7 ,5ll 81; while for the
fiscal year closing with the present month"; the
total will not be far from S40, 000, O00-leaving
large deficit to cover last years expenses. The
receipts from all other sources will add but little
to this amount, 80 that the Government is called
upon at once to supply deficiency Of over two
hundred million dollars.
The question of first importance is, therefore,
how is this very large amount of money to be
provided? The most natural method of increas-
ing the revenue, is BY modification oil the tariff
and this will undoubtedly receive the immediate
attention of Congress at the approaching session.
The Morrill, tariff il is asserted, is not to be
repealed, but TO be changed from protective to
a revenue standard. There will be a conflict on
this point, but the protectionists will be obliged
to give way before :he wants Of the Treasury,
although few exceptions will be made, We learn,
in favor of certain pet localities. This change
will reduce the tariff upon many manufactured
goods, in order to induce their importation. But
in the present condition of trade, only small in
crease of revenue can be expected from that
source, that the great reliance will be placed in
a heavy tax upon articles of necessity, the more
important OF which are now admitted free. A
duty of fifteen cents per pound upon tea, four
cents upon coffee, two and half cents up
NJ and aipbf IN lon uallon
upon molasses. is now a part of tle favor
lite policy. This would add about twenty
five million dollars to the current yearly revenue,
and il trade revives as expected, would probably
bring the receipts into the Treasury up TO the
binary expenses of the Government, including the
interest on the public debt. The total outlay
for the war during the year, amounting. say to
two hundred millions, will have to be provided
from extraordinary sources. There are various
projects for raising these means, and the Gov
eminent has yet to choose between them. strike
out some original plan for itself. The friends of
National Bank insist that now is good time TO
revive that institution, tax all issues from local
banks or drive them out of circulation, and carry
on the war with Government paper money.
Others are in favor of direct taxation, to be ar
ranged for through the machinery now in use in
the several States, and thus collected by the local
authorities and paid into the U. S. Treasury, as
yet others who believe that the whole amount
needed could be borrowed upon the faith of the
Government. We should not be surprised if all the
various principles embodied in these several plans
should find illustration in the policy OF the Govern
ment, and be sanctioned by Congress Ii we
assume two hundred millions per annum as the
amount required from extraordinary sources
while the war laste, We may safely infer that part
will he raised by the issue of treasury notes
fhnt,t 40
form n currency among the people; part by sue
cessive loans upon Government stock; and that
to sustain the market value of these issues, a
sort will be had IN case of need, to direct taxa
ton. The last loan for the war of 1912 was Ia
ken, if we mistake not, at Is for a six per cent
stock. Ii the tariff were at once arranged upon
a revenue basis, the United States could probably
borrow very large amount in Europe upon
seven per cent. stock at about 80, or, as some
think, at par, if the interest were made PAYABLE
in London or Havre, ut the option OF the lender
An act for a direct annual tax, IL IL were cheer
fully responded TO by the States, would not only
raise additional revenue, but would give increased
currency to the stock and aid in sustaining the
value of the treasury notes, il would show that
the people were in earnest in support of The move
ment and willing TO bear their share of the bur-
dens il imposes.
1t is unfortunate that the several States which
have declared their readiness TO support the Gen.
eral Government with men and means, should
have reSorted in all to loans, instead of d-
rect taxation in order TO raise the necessary funds
BY competing in the open market with their
bonds, they have interfered with the disposition
of the United States securities and lost the power
which would have been gained by a resort 20 the
more legitimate method Of a direct requisition
from the people.
We have thus indicated the probable course Of
the Government. LIST. A change in the tariff 10
n revenue standard, to bring the receipts for
customs up TO the amount required for the pay
ment Of interest and the ordinary expenditures Of
Government ID. The borrowing of a large
amount upon a Government per cent stock,
which it is believed could be placed either in this
country or Europe. I'd The issue in free "a