Daily State sentinel. [volume] (Indianapolis, Ind.) 1861-1865, 1862-02-12

soun6 Financial Principics
The New York Assembly have had under dis
cussion the financial policy which should control
the country in the present crisis A series Of
resolutions were presented by the Committee of
Ways and Means. taking strong ground in favor
of the adoption OF . sound financial policy by the
FEDERAL Government. The New York Argus
says strenuous effort was ma,Ie To soften them
down and lower their tone. and especially to get
rid 90 that portion OF them which disapprOves the
policy OF making paper currency legal tensler
for the payment Of debts, but it sIgnalIy failed.
Tie voice Of the State OF New York, as express
Ell by the Assembly. is distinct and emphatic, and
atfirms these positions: sfm
n l. That the payment Of the entire interest on
the public debt sherld. be secured by sufficient
permanent direct tax, pledged to this specific Oh
ject
:. That sinking fund for the reimbursement
OF the principal of the public debt should be ere
ated. apart arpi pledged for that purpose
, That the direct tax Of $40 600 400. leviedby
Congress last August together with tie duties
on imports. should be employed to deiray the
current expenses OF Government
4. That the people OF that State are willing to
ray. by direct taxation their share OF the interest
of the public debt, and 10 share, with other loyal
States. any burthens of the financial policy rec
ommended; believing that such system of
finance will command public confidence, and all
the means needed at more favorable rates OF in
terest, less depreciation in the value OF stocks.
and less injury to the people than the emission of
Government paper made compulsory tender, or
the creation of stocks without specific security
for the payment Of interest and principal.
These propositions are good. sound. whole
some. old fashioned Democratic financial doc
rine; and we rejoice at their firm assertion at this
time. and that no partisan appeals insinuatons
against their loyalty were able to swerve the
members of the House from their integrity, or in
duce them to lower their tone. Financial firm
ness and soundaess are now essential to the sal
walton OF the nation. Mere issues OF Government
paper-even with a legal coercion upon creditors
TO accept twill not do. The payment of the
interest and the ultimate redemption of he prin
cipal must be put beyond doubt, and this be
done only by the imposition Of a sufficient tax to
meet the annual interest and make annual
contribution to a sinking fund to redeem the prin
cipal. Do this, and the public credit will be
maintained; omit il, and the Government paper
will depreciate. and carry ruin and bankruptcy
into all the business of the country.
The New York Herald, which has advocated
the issue of Treasury notes a circulating
dium, with the legal tender clause, strenuously
urges the absolute necessity OF promptly passing
tax bill sufficient to maintain the credit OF the
Government and provide for It's ordinary
Peases to prevent the issue of those notes beyond
the $3.50 900 000 called for lfthis Is not done and
If che Government is made to depend upon fur
ther nd larger issues of Treasury notes. it pre-
diets that great disasters will follow such policy.
II will be seen from the following extract. which
We copy from the money article OF that PRINT of
SATURDAY last. that IL calls upon Congress TO
make tax levy. which will put one hundred mil
lions into the Treasury before the middie of
April Tins il regards a. absolutely necessary to
mtintsin the credit of the Government aud 20
prevent ruinous disasters to the country. The
Herald SAYS
We may now observe that the country is fairly
ltuucaei upon tue sea of paper money aud that
the ultimate fate OF financial system will de
pend largely upon the sigoT and prudence ol Con
gress N dealing wiki the financial questions which
remain be adjusted. The Slot, OO0. 0O0 OF
treasury notes % DC issuel Mil not necessarily
cause any great disturbance ia values IT they are
not followed 10y further and larger issues. Id the
$3.50 600 coo to be authorized are to be fol
lowe,l by > 30 200 900 more IN tue spring and rs
much more IN the summer, values viii inevitably
rise 50 prodigiously tlrat great disasters will
sue ana persons with fixed incomes will be ruined.
Ii should therefore he the business of Congress
at once to proyrie against tire necessity for fur
ther issues This can DE done BY acting NJ once
upo. tire tax hill ami rendering a large prorur
ton of the taxes payable Within sixty OF ninety
days. II tins i not tOne IN the course vi month
or two the treasury will AGAIN he empty and there
Will be no means OF repieuishing It excep, by fur
ther issues OF treasury notes msde legal tender
With proper taxaten $3.50. .tlUU CT treasury
notes ought t. be enough - supply the wants OF
Government provided they can he tnasle 10 flow
back into the treasury fast they now out
hut II provision be not alt,ie Tor She.r speedy
turn 70 the treasury through the channels OF the
collectors OF customs and commissioners, thls
sum viii only carry the war tor some ten
Weeks-will leave but small balance, an Tact,
after pay meni OF tie preSeu: floating debt ct the
treasury. Not an hour should DE lost therefore
m adjusting the details ct the leyy, and put.
ing Il through. Mr. Chase ought T. Ice assured
Of receiving hundred millions from be-
fore the saia!iie of April. lac people ean pay
taxes Just - we'll How SIX mouths hence. AMI
Congress can pass good bin next week =
likely 10 he framed after months incubation IN
Committee All that Is wanted i a brief meas
ure taxing ali kinds Of documents transferring,
Promising 10 pay. or securing money cor property
II any kind: all such articles OF luxury IS car /.
riages. watches. iewelry aud plate; tue
incomes OF i6geigners do.ag busines, here
without intending become eitszes.s
travellers IN railways steamships pub
lc conveyances OF al kinds teegraphc
messages real estate and personal prop
er,y. &C. e. &c The tax on these articles
should be payable on or before A certain date
say Ist Of apsil-and should be increased Eve or
Ten per cent il not paid by that DAY Combined
with this direct tax. there shorld De an excise
bill. leyying excise duty all native whis I
kies. ales. tobacco. sugar. &c And. lastly, the
customs faiir- on sugar tea. coffee iron lead