The New York herald., 1862-02-07


SEC a. And H~ther enacted That whenever the
Be n The United States shall have been borne
of s1ywo years. he shall be retired from active
grade which belonged at the time Of such retiremen
SIC 70 And ither enacted That the President of the
oer who may be retired preceding section Of this
thus ss the & any nay anS
his grade while SO employed.
Mr.. SHERMAN, (rep.) Of Ohio, said that although in
favor OF the bill, yet it did 20 far enough did
not reach the desired point. The great problem Of this
war is not physical but financial One year ago
the President crept into the capital disguise Five
hundred determined men could then have taken the
capital and all the archives this capital might have
been the Manassas Of the rebellion Then weak
physically, but We had scarcely any debt. Now the
condition OF things is changed and we are strong
physically, but weak financially and the question must
be met how to carry the financial measures Of
the government The delay in military movements for
the last three months, IN my Judgment has created
financial difficulties which it will be hard to surmoun
do not know the reasons for delay They may be
ustabe; but whoever may have been the cause think
will have gevous to settle with his country
men. do not blame any We have also been delay
ing While have here the credit of the country has
been impaired and have taken steps to maintain
the credit Of the government The Secretary of the
Treasury in his recent annual report that for the
first quarter Of the current fiscal year the receipts and
expenditures ascerained for the remaining three
quarters they are estimated as follows-For the first
quarter Of the year ending June, 1862 the actual ex
penditures $9S 29 1888 O9 for the second third
fourth quarters the estimated expenditures are
$So2 ,o35 I6l with additional appropriations, in the
natEre ,a.., of & defcisnces Of $dasiSos 81 s27 making
that this amount will be Increased by various bills,
especially from the Military Committee. The de-
fciency since the last session. in the estimates
aone S121 434 4sS. We are told also that the est-
mated expenditures for the year ending June 3O 1863
are for the Civil III List s2s for the Interior De-
$500 l59 1885, for the Navy Department $4 1854 1894
account Of the Public Debt $3.50 159, ,330makng ag
gregae Of $476 331 PAS These estimates Of the Secre
tary have been considerably enlarged by the Committee
Of Ways and Means of the House, and they do not include
the bounty granted TO soldiers II the should
the large sums for damages to private property,
for property taken for public We cannot doubt
that the amount OF appropriations necessary for the next
fiscal year will not be less than $3.50 000 We
much in the habit Of dealing with large that
not reflect how much these are in excess Of the
sums to which we have been accustomed. But
annual appropriations will now be four times the
entire paper currency OF the country and times the
expenditure Of any previous year OF government
its foundationmore than Great Britain expended
hor contest with Napoleon. When you add to these
the difficult amounts collected for State, county
city taxes-for the authorities which disbarse all the
not less than $3.50 600 O00we have aggregate expen
diture for year of 500 900 600 per annum The
popuatioof the loyal States including onethird of vir
gna s about % 900 900 SOULS this would be expen
dituye of than $50 per head The expenditure Of
Great Britain Is but $40 6S per head her expenditure
during the war with Napoleon at the highest rate was
but $40 per head and nation has borne higher
taxation that are called upon for expenditure
nearly double Of that borne by any nation in ancient
modern history. do not make this comparison with
view to any just expenditure do make it 10
oppose the would stake every species Of property
and the life Of every marin this nation upon the
n Of the Nor it TO affect the public credit for the
public creditor s weh informed Of the extent Of your
wants know it is most difficult task to oppose any
appropriation asked for. II objection is made 10 the
n n 10 Oh
OF narrow parsimony a disposition restrain
and cripple the administration in its eorto suppress
the rebellion In my judgment every bill should be
tested by its effects the finances. We have apprOpri
ated and spent ss we held the lamp Of Aladdin the
purse Of Fortunatus, until now we are compelled to
sort to the issue Of demand notes. and may be compelled
10 make them legal tender in order their
lation. The condition Of our finances has already at
tracted the attention OF foreign Powers In
tcle in the London Post. the government organ IL is
said "that national bankruptcy is not agreeable
prospect, but it is the only one presented by the
istng state Of American finances. Never there q
more reckless and extravagant; before
prosperous and hourshng state making such gigantic
Times has repeatedly, and in the most bittor manner
assaed our financial SYSTEM and endcavored in every
possible way to prevent the negotiation of securities
abroad. Il may be that English friends willing
prophets Of dsaser but at least could learn reason
from their warnings. II may bo necessary for again
TO recur to the simple habits Of our forefahers and
prosperity may be now checked by adversely for
own good again repeat that the chief difficulty
Of position is financial, and not physical We
financial system, which will enable us to meet the
large demands upon the public Treasury. In my judg-
ment three propositions will embrace all the egsla-
ton needed to place the public credit upon basis
yield ample revenue for the prosecution OF tho war.
Fis;-Thc prompt levy Of a tax, other than duties
on imports TO produce not less than OOO 10 be
levied may be upon certain luxuies other than
upon persons and property SecondA careful revision
OF the laws regulating salaries and compensation and
correction of the abuses growing out OF existing laws for
the purchase and transportation Of property. ThrdA
rigid scrutiny Of the disbursements Of the public funds
and prompt punishment OF every officer who either
takes himself. or permits others TO take, money for
vices properly Of which the government do
the benefit IL is not my purpose 10 discuss the subject
of taxation; the constitution provides that all
bills shall originate in the House; in few days We
shah have the result of the deliberations Of the House
and we can ,nen act definitely. j will only say
present system the States rely mainly direct
taxes collected by annual assessment. The general
government has relied upon duties on imported
chandise. The vast field Of taxation which in Eu-
ropean governments is the main reliance for revenue
taxes classed under the head Of mposs, excise indirect
Of various kndshave not been resorted To- by
the payment Of the debt from the with Great
Britain; ana when We now again compelled TO
to this mode Of taxtion, find the people willing
respond. Your assessments will be cheerfuy paid but
if so, they must be wisely expended. You cannot take
from the people their resources and their earnings
pay Mr.. Morgan $4,000 for four weeks work. You
not employ their resources, collected in the form Of
taxes to pay useless employees about the halls OF con-
gress 10 pay Office holders extravagant compensa
ton will they allow you TO pay officers Of the army
and navy unreasonable salaries. If sacrifices must be
made the officers Of the government must share in
these sacrifices; and IL is proper that the commence
ment should be with us. No one should from
the government than similar services are worth
in private lifc All privileges. perqueites, and ire
uares must be surrendered In the early days Of the
French Revolution have the historical examples OF
priests aud nobcs of cities and towns and OF all classes
freely surrenderng their privileges for the public
good We must initiate their example, the people will
not sustain the prosecution Of this When the
Committee Compensation and Expenditure were called
upon frame the bills now submitted 10 the Senate the
first question TO be decided was Upon what principle the
reduction should he nader Should IL be pro upon
all salaries and compcnsatons2 If 30, the present inc
qualities would be continued. reduction OF twenty
per cent on the present rate OF mileage would still
leave the amount Of mileage TO be paid excessive:
while the rate Of reduction applied to the
private soldier, person receiving but a small
pensation, would be the grossest injustice A pro
rata reduction would only take away little from
the Injuries OF those who receive large salaries
while IL might bring ruin TO those who receive very
Shall salaries II s manifest that this rule though tho
easiest of execution and the most plausible In theory
would be unjust Tho plan adopted by the committee
was revise all salaries in separate bills each bill
embrace a single department Of the government Tho
question thcn occurred, How shall this reduction be
fectedP The easiest mode OF revision would he by
amendments TO the appropriation bills; hut this would