The New York herald., 1862-01-06


paper legal tender; and it must provide that,
now or hereafter, that paper shall be funded in
stock Of the United States bearing 8, 6 or 2 per
cent interest," unless il should suit the convenience
of the government to redeem it in specie. So far
as these points are concerned the Committee of
Ways and Means has nodiscretion. The crisis is
imperative. II rests with the committee and with
Congress TO determine the details Of the plan
namely, at what period the irredeemable govern
ment paper shall be funded into what kind of stock
it shall be convertible whether or no it shall bear
interest, on what conditions IT may be redeemed
in coin, and what form of taxation shall be adopted
to render 10 certain of redemption that it shall
not depreciate. With regard 10 the first point, it
would seem that the government currency ought
to be convertible at all times after midsummer
next 1t is evident that it will circulate as money
throughout the country, and that, once issued, it
will remain in circulation for long period of time.
II Congress should decide that it shall bear no in
terest. the longer it remains aoat the better for
the Treasury Department. Two hundred millions
of dollars can readily be foated in the shape Of
government paper. II so much can be kept out
without trouble for two years, at least twelve
millions Of dollars in interest win be saved. IT, on
another hand, it. should be deemed advisable to
give to the new government currency an advan-
tage over ordinary bank notes by rendering t1iyi-
dendpaying, annual charge of say three per cent
would probably answer the purpose, and in this
event it should not be convertible for eighteen Or
twenty-four months. As to the nature Of the
stockinto which it should be funded it is only
cessary to remark that for twenty years, with
brief intervals, the Eve per cents of the United
States have commanded over par in the markets
Of the world. The present rebellion suppressed,
there is no reason 10 doubt but they would sell
al a premium again. If, therefore, Congress feels
confident Of the power of the nation to subdue the
rebels, it would seem sufficient and proper to
der the new national currency convertible, at a
fixed period, into United States bonds bearing
Eve per cent interest," and redeemable at the plea
sure Of the government after twenty or thirty
years. Government should, however, reserve the
right Of redeemjng the new currency in specie at
the time Of its conversion. It is possible that the
rebels may succumb sooner than is commonly ex-
pected In this event the United States Treasury will
be flush, and government ought not to place itsef in
position to be compelled to buy up its own pro-
misses to pay at twenty per cent premium. as was
done under the Presidency of Pierce. No difficu.-
ty should exist with regard to the methods Of taxa
tion to be adopted. At the extra session, held in
July, Congress imposed an income tax, the worst
possible form Of taxation for a country like ours,
where fixed incomes are unknown, and mems pro-
fits huctuate widely from year to year. In Eng
land, where large proportion Of the wealthy
classes derive their income from hereditary in-
vestments in land in the public funds, an income
tax is simple and equitable impost. In this
country no one enjoys fixed income, and the
scheme adopted by Congress in July is neither
likely to press evenly on the people of the North
nor TO be collected with facility, nor to
yield large amount of revenue. The de-
: sired object may be much more surely and
conveniently attained by taxing specific objects
with regard to which there can be no difficulty,
For instance, there might be direct tax OF
$40 100000 apportioned among the loyal States
and collected by the several State governments by
the same process as State taxes now collected.
Then sum Of thirty millions nigh. be collected by
a suitable tax on all kinds of Deeds sales, convey
ances, leases, mortgages, charter parties, policies
Of insurance, bills Of exchange, promssory notes,
checks, sale notes, Wills bonds Of surety, and all
such instruments as convey or insure or hypothe-
cate property or money. large gum might be raised
by suitable tax, say a per cent, on all trans
fers or issues of stock in bank, insurance railroad
canal manufacturing or ether stock in incorpo-
rated companies. Ii the issues of newspapers
and periodicals were taxed, say a of q cent for
each daily issue of each paper, a large revenue
would be produced without any apprcciable
difference to the public. Finally, large number
of objects should be specially taxed-for instance,
spirits, wines and ales, which could be taxed spc-
cifcalIy at so much year when the license TO
sell was granted; carriages, Watches silver plate,
gold jewelry, all Of which, in like manner, should
be taxed in the shop of the vendor; the incomes of
resident foreigners, who do not propose to become
citizens; all articles Of luxury used exclusively by
the rich, &C., &c.
CITY COMMERCIAL REPORT.
SATURDAY, Jan. 4-6P NJ
AsHEs.-Thc market was quiet and sales limited at 81
for both soris prices for the inspection havo not
opened.
BREApsrurrs-Flour-Tbo market was Grmcr fer CON-
mon and medium shipping brands Of State and Western
extra branes also firm, with limited sales. The