The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-12-10

7 TtSPtCCIUIfy COHYJdora-
ton OF Congress whether the probable revenue
affords sufficient reason for putting in operation,
| ut great cost the machinery Of tho act, with a
view, should the States assume the direct tax, TO
the collection OF the income tax alone.
The prudent forecast which induced Congress- TO
postpone TO another year the necessity Of steps for
! the practical enforcement of the law affords, hap
ply the opportunity Of revision and modification.
II affords, also, the opportunity Of comparing the
] amount Of needed revenue with the probable in
come from taxes Of every kind, and OF 30 shaping
4 legislation as TO secure beyond doubt the sums
essential to the fliilment OF national obligations
/ and the maintenance Of the national credit
4 A TAX TO Re rUT ON STILLS, DISTILLED LIQUORS,
! ToFAc9o, BANK NOTES, CARRIAGES, LEG AcIEs, PA.
/ rIH, PROPERTY DEEDS, ETC.
In tie Judgment OF the Secretary, it will be
necessary to increase the direct tax as to pro-
| guce from the loyal States alone q revenue Of at
4 least twenty millions of dollars and to lay such
duties on stills and distilled liquors, on tobacco,
/ bahk notes, on carriages, on lcgacies, on paper
/ evidences OF debt and instruments for conveyance
| 81 property, and other like subjects of taxation,
I a. win produce an equal additional sam. The
istng provision for an income tax, Just in its prin
efe, lnasluch as IL requires largest contributions
| IRON iIGcst means, may, possibly, and y some
what modified VIII, probably, produce ten millions
/ o. dollars more. The aggregate taxation will thus
] amount 70 fifty millions Of dollars.
! Ninety MILLIONS or DOLLARS NECESSARY FOR TIE
/ CURRENT YEAR.
The Secretary is aware that the sum ia large;
but seeing, as he does, no probability that the
] revenue from ordinary sources will exceed forty
J Nlllons of dollars during the current year,
and knowing, as he does, that to meet even
| economical disbursements, and pay the inte-
rest on The public debt, and provide sinking fund
ior the gradual reduction OF its priscpal the APP
preparation OF niaety millions OF dollars will be ne
cessary, he feels that he must not shrink from
| pam statement Of the actual necessities Of the
/ situation.
| But if the sum il large the means Of the people
are also large, and tho object to be attained by
conservation OF portion OF them to the public
vice IS priceless. TIE real property of the loyal
states = valued, III round numbers, at seven and
hall thousands Of millions, The personal property at
three and half thousands Of Millions, and the an
NAL srpus earnings Of the loyal people al not less
| tlaA llfgc hundred millions Of dollars -Four mills
Oh each dollar, o. ~ o.6ths Of one per cent the
real AID personal property Of the loyal States will
produce toriy-iour millions Of dollars. to which
sum The proposed income tax will probably add
| ten millions. The whole sum will be little more
! than one-sixth OF the surplus earnings OF the
! country. Certainly such tax caanot be pad
! without Inconvenience; doubtless the Lcgs 3tlirc
which imposes such n tax must take care that tbu
money thtis raised bc used economically, pruacutly
and honestly. But can any one hesitate about such
or even greater contributions when the Union and
the popular institutions which il guards are put in
peril by rebellion and the public faith pledged to
our own citizens, who, in many instances have
placed the whole earnings OF industrious lives in
the hands 81 the government for its suppression,
asks support
ruf1iltE RELIANCE TO Es PLACED UroN LOANS
II niii be seen - a glance that the amount to be
derived from taxation forms bit small portion of
the suns required for the expenses Of the war.
For the rest the reliance must be placed on loans.
Already beyond the expectations OF the most
sangaine the country has responded to the appeals
81 lie Secretary. The means adopted for securing
he concurrence Of all classes Of citizens in
financial support 10 the government have
bccn already explained. 1t remains only to
be said here that, while the action Of the
banking institutions III assuming the immediate
responsibility OF the whole advances hitherto
pn1 ln inn 20 Nj Vntt.
tho largest portion OF them merits high eulogium
the prompt patriotism with which citizens OF
moderate means aud working men and working
women have brought their in iivdual offerings to
The service OF their country. must command even
warmer praise. IL should be the constant care OF
Gle national legislature and OF the national gov
Crlmcut IN all its departments that the generous
confidence reposed by the poor rs well as by the
reh, III the public faith be never disappointed.
rug FINANCES SoT VERY BRILLIANT WHEN THE
SECRETARY TOOK OFFICE.
IT mast rot he concealed, however, that the con
di;on Of the national finances when the present
Secretary entered upon The duties o. ls office,
theHgl, somewhat improved during the able and
uprielt, though brief, administration Of his imme-
| advantageous rates IN the negotiation OF
loans inevitable. 1t affords just occa
! sion Of graduation that, under most
| barrassing circums ances Of shaken credit ard inn
! meLse demands loans have been effected a. home
without resort TO any foreign market, to the
amount OF one hundred and ninety seven millions Of
| dollars with q virtual engagement for fifty millions
more, st an average rate, considering the CONVEX
| sion Of tie three years 7.J0 bonds into twenty
/ years il per cent bonds certain, of somewhat
/ less then six and a half per cent.
| THE RACE or ISlEHG5r raID BY THE GoyERsMEST
/ DEEMED TOO HIGu--UNIrEp STATES STOCKS A SAFE
/ INVESTMENT.
rhs rate Of interest is, however. higher than the
United states, with their vast and constantly acct
nula ing resources, ought 10 pay. No doubt fea-
sonably exists that after the re-estabiishment of
| union and order, the live per cent bonds Of the
United states viii command . premium IN the mar
| kets Of the Wofl5, unless the national debt be,
meantime, augmented beyond necessity reason.
| The wealth and power OF thc country. manifested
! II the suppression Of rebellion, will de-
| menstrate the absolute safety Of invest
mcnts in United States stocks: and foreign
capitalists, restricted TO the lower interests and
the inferior security of public debt in other coun.
tries, will be attracted by the superior advantages
offered by the loans of the Union.
THE GEsr MEANS OF PROSECUTING THE WAR CON-
sIDERED.
IT, enable the government to obtain the neces-
sary means for prosecuting the war to 4 successful
issue, without unnecessary cost is problem which
must engage the most careful attention Of the le-
| gisatui e.
Tho Secretary has given to this problem the best
consideration III his power, and now begs leave to
submit to Congress the result of his reflections.
I THE PAPER CURRENCY or TIE CouNiRY--rO WHOM
DOES IT BELONG?
| The circulation OF the banks Of the United States,
on the lst day of January, 1861, was computed to
| in round numbers in States now loyal in
cuding West Virginia, and $50, 600 in the
| rebeons States. The whole Of this circulation
! constitutes q loan without interest from the
! people to the banks costing them nothing
! except the expense of issue and redemption
and the interest on the specie kept on hand for
the latter purpose; and it deserves consideration
/ whether sound policy does not require that the ad-
| vantages of this loan be transferred, in part at
least from the banks, representing only the inter-
csts Of the stockholders to the government repre-
senting the aggregate interests Of the whole peo
| pie.
BANK CURRENCY UNCONSTITUTIONAL.
/ II has been well questioned by the most eminent
statesmen whether currency of bank notes, issued
by local institutions under State laws, is not, in
fact, prohibited by the national constitution. Such
emissions certainly fall within the spirit if not
within the letter, of the constitutional prohibition
OF the emission Of bills Of credit by the States and
of the making by them Of anything except gold and
silver coin legal tender in payment of debts.
| However this may be, it is too clear to be rea-
sonably disputed that Congress, under its consttu-
! tional powers to lay taxes to regulate commerce,
and to regulate the value Of coin, possesses ample
authority to control the credit circulation which en-
tiers so largely into the transactions of commerce
and affects in SO many ways the value Of coin.
/ rur IN.