Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1861-12-20

"
ciousy made " The existing tariff and Increase Of
revenue may ia this way be probably obtained
pul SAlsllhk tl,euh,sl-u'ea arc NOT ptonuous u
wise and perm adjustment of impost 20 the various
demands ofrevcnue commerce and home industry. The
most sacred duty Of the American penpe at this
requires the conservation Of all their energies and all
their to the reesabshment of Union on the
permanent foundations p justice and freedom and while
on this work sound policy would suggest not the
extension ofiorcgn trade, but absolute reliance
under ODD. upon American labor, American skill, and
American soil Freedom ~ commerce is indeed. wise
aud noble policy but 20 be wise noble. Il must be the
policy of concordan, and fraieraa nations
Ia accordance with these views the Secretary hrgs
leave TO recommend that he duties on tea, coffee and
gar be increased 10 the heretofore proposed that
s to say TO two and onehalf cents per pound brown
sugar. O three cents caycd sugar; 10 twenty
per pound green tea, and ive per uound ON
coffee and that no other alterations Of the tariff be made
this session OF Congress unless experience or CHANGED
shall demonstrate he necessity or yed
eucy Of them. All considerations o prudence aud pat
tariff full and fair trial and " deserving the work VI
revision, modification, and permanent settlement for
more propitious da
II becomes the duty Of Congress. therefore to direct
s attention 90 revenue ffom other sources 20 consider
the character and extent ~ he pwrisi1u made az it, last
session aud the expcdency % further provision OF m
liar character.
In the Judgment of the Secretary it will be neccssa-
~ TO incrrtsr the direct produce from the
loyal States alone revenue Of az least twenty millions of
collars, and 20 Jay such duties stills and distilled La
tobacco On uauk notes. on cafriages on eRaces
ON paper evidences Of debt aud instruments fnr convey
ance OF properly and other like subjects Of taxaiiin as
viii produce an equal additional The existing pro-
VISION io an income tax JUS in it, principles, inasmuch
as u requires largest contributions from largest means
may possibly, md u somewhat mndihcd will probably
produce ten millions Of dollars more. The aggregate
''N'.''" VI. ''i, AMOUNT % h'' m''no'' OF 'o".
1t ~ll be seen glance that the amount TO be de-
rived rom taxation forms but small pufuou otthc
required for The cuscs Of the For the rest the
reliance must be placed on loans
Already beyond the expectations Of the most saneuine
I'll IN tN4 ffF
~ The means adopted for securing the concurrence uf
all classes II czeus 10 financial support the govern
ment have been ALREADY explained. l. remains only to
be said here that while the action Of the banking instu
Tons in assuming the immediate responsibility Of the
whole advances hitherto required, we'll as the final
fesp2nNpiv OF much the largest portion OF them,
its high eulogiun. the prompt patriotism with which cit-
zens OF moderate means aud working aud working
women nave wo"ght their Individual offerings to the
service Of their country, must command
praise. IL should be the Of the national
legislature and OF the national government In all ts de-
parmcus that the generous confidence repose by the
poor as well as by the rich in the public faith be never
Il must not he conceded however that the condition
OF the national finances when the prescut Secretary
tered upon the duties of his office th9nvh soresh1t i'm
proved during The able An1 upright though brief admin
stration of his immediate predecessor, such
make disadyautageous rates in the negotiation " loans
inevitable IL an rds just occasion of graduation that
under most embarrassing circumstances Of shaken credit
and immense demands, loans have been effected home
without resort 10 any foreign market, % the
one hundred aud nnetyseyen millions Of dolars with a
virtual engagement for hity million, more, an average
rate considering the OF the three
bonds INTO twenty years SIX per cent bonds certain
/, Of somewhatle less than six aud half per cent.
This rate Of interest IS however higher than the
United states with their vast and constantly accumuat-
ing resources, ought pay No doubt reasonably exist.
mat aiie the feesanlshmen of union and ORDER the
hVe per cent, bonds OF the United States will
premium IN the markets Of the world unless The ma,
uoh" heot De, meantime augmented beyond necessitv y
or reason. The wealth aud power Of the country man
me suppression Of rebellion will detnonstrate
tne absolute safety Of investments in United States
1nu 3regn capitalists, restricted To- tho lover
'hh me inferior secafity Of public debt in o'her
cgunties' viii be attracted hy the superior advantages
offered by the loans Of the Union
10 enable the government obtain the necessary
lor prosecuting the successful ISSUE with
~. ~ cost IS grgerm which must engage
The Secretary given - this problem the best eon
sderaon ia his power andhnv begs leave to submit to
congress the result Of his r'heetions
the IL dav Of January 1851 eompHted to be SOD
OlO16l or this circulation s5 1000 0l0 in round nun
bcrs in States 20 loyal Including Wes'ern Virginia
and $50 900 000 in the rcbcious States. The whole II
this circulation constitutes loan without interest from
the people 10 the banks costing them nothing except the
expenccs Of issue aud redemption and the interest ON
the specie kept on hand Tor the latter purpose and
deserves consideration whether sound policy does re-
quirc that the advantages NJ This loan be tral sferfd in
part at least from the banks, representing only the in-
tefcsts Of the stockholders, the government ere.cn
Il has been well questioned by the eminent states
institutions under state laws not, in fact, prohibited by
the national Cuns' ut'n such emissions certainly f
within the spirit, IL within the letter Of the c6ns
the States and uf the making by them II ANYTHING "a, .
cent gold aud silver coin legal tender in payment Of
However this may be- it is too clear 10 be reasonably
disputed that Congress, under its constitutional p1wcrs
70 lay taxes 10 regulate commerce. aud regulate the
'aiue o com, possesses authority 10 control the credit
circulation which largely into the transactions
Of commerce and effects in many ways the value of
In the Judgment Of the Secretary the time has arrived
when Nongrcss should exercise this authority The value
~ me existing bank note circulation depends tho laws
4uNf fIn HN.- II
hundred private corporations IL is usually furnished In
greatest proportions by institutions Of least capital
Circulation, commonly is in the inverse ratio " sol
'enoy We'll founded ins iutons Of large and solid can
al, have, In general comparatively little circulation;
"ne weak corpoaons seek To sustain themselves by OBJ
tanning from the people the largest possible credit in this
oTm. Under such system, or rather lack Of system
great fluctuations and heavy losses in discounts and ey
lhanges are inevitable aud not unfrcqucnily through
failures of the issuing Of the circulation become suddenly
worthless in the hands of the people. The recent eNpe-
rence If several States in the valley Of The Missi
painfully illustrates the justice Of these observations
md enorces By the most cogent practical arguments the
iuy ofprotecung commerce and industry against the
'urrencc OF such disorders
The Secretary thinks it possible to combine with this
protection provision for circulation safe to the com
nuuiiy and convenient for the government
Two plans for ehecling this object suggested The
irs eontemplaes the gradual Withdrawal from otrcula-
on Of the notes Of private corporations and for the issue
"a their stead Of United States notes. payable in coin on
ienAnd, in amounts sufficient for the useful ends Of
currency The second contcmplales the
PREPARATION aud delivery, institutions and association
If notes prepared for circulation under national direction
md 10 be secured 20 prompt eonyerby into coin by
he pledge OF United States bonds and other useful reg
atoms.
The first Of these plans partially adop,ed al the
asst session Of Congress in the provision authorizing the
secretary 10 issue United States in coin 10
IN amount not exceeding my million dollars That pro
vision may be so extended reach the average ocu
alton OF the country, while moderate gradually
augmented, bank notes. will relieve the national from
he competition Of local circulation IL has been already
suggested that the substitution Of national for state
currency, upon this plan, would be equivalent 70 loan
o the government without interest except on the fund
be kept IN CON- and without expense except the
n preparation, ISSUE and redemption; while the people
would gain the additional advantage Of uniform curren
~ and relief considerable burden ia theform ofintfr
st on debt The advantages are doubtless considerable
md II scheme be devised by which such circula-
ion will be certainly and strictly confined 10 the real
leeds OF the people, and kept constantly equivalent to
pece by prompt aud certain redemption in CON- IL will
ardly fail Of legislative sanction
The plan, however Is not without serious
md hazards. The temptation especially great in times
pressure and danger "a issue notes without ADEQUATE
rossiOn for redemption beyond means however careful
provided and managedi the hazard Of panios pre
iptating demands for coin concentrated on few
oints aud single fund.- the risk Of depreoiAted
nd finally worthless paper money; the ifnmeasufahle
wills Of dishonored public faith and national bankruptcy
II these possible consequences Of the adoption Of
ystem Of government circulation. II may be said and
rhaps truly that they less deplorahe than those
n iIredeemable bank circulation Without enering into
hat comparison, the Secretary contents himself with
bserving that in his Judgment these possible disasters
eigh the probable benefits Of the plan that he feels
mse concentrated y forbear recommending It's adop-
ION.