Cleveland morning leader. [volume] (Cleveland [Ohio]) 1854-1865, 1862-01-07

ernment is faught with othsr dangers. -
The entire banking circulation within The
loyal States Is stated By the Secretary to
be $3.50, 900, 900 on the drst day OF January,
1861. The effect Of the proposed plan
would be TO create bank circulation within
eighteen months Of s755, 900, 900. This
would be independent Of the Governments
issue Of demand notes, making together
perhaps one thousand millions Of dollars az
a substitute for the existing one hundred
and fifty millions.
Who can estimate the consequences Of
such an e1pansion2 Prices Of all sorts would
be greatly enhanced; the expectations Of the
country diminished, while the importation
Of foreign goods would be increased; the ex-
changes now in our favor be turned against
us; our gold currency superseded BY paper
Issues, and sent abroad, and all existing
values deranged.
invite your attention to the Act of Con-
gress Of August last, g to provide increased
revenue from imports, to pay interest on
the public debt, and for other purposes"
By this Act a direct tax Of twenty mil
lions of dollars Is annually laid upon the
United States, Of which one million five
/ hundred and sixty seven thousand and
eighty-nine and one-third dollars Is appcr-
| toned to Ohio as its quota. It provides
for the assessing and collecting Of the tax,
through United States officers, under the di-
rection Of the Secretary Of the Treasury, or
by the State, if it shall 80 elect, through its
own officers and in its own way
and manner. In case the State
shall assume to assess and collect it, and
give notice by the Governor, or other pro-
per officer, to the Secretary of the Treasury,
by the second Tuesday Of February next
and in each succeeding year thereafter, Of
its intention to assume and pay, or to assess,
collect and pay the tax, it will be entitled
in lieu Of the compensation allowed TO the
United States officers, deduction Of fifteen
per centum on such parts Of its quota of the
tax as it shall pay prior to the first day Of
July, and of ten per centum on such parts oi
the same as it shall pay prior to the Ist day Of
October in the year 20 which such payments
: respectively relate. The Act further pro-
vides that the amount of the tax apportioned
to any State shall be liable to be paid, and
satisfied, in whole or in part, by the release
of the State, duly executed to the Uuited
States, of any liquidated and determined
claim of such State, Of equal amount agains
the United States, and that, in case Of suet
release, the State shall be allowed the s1m'
abatement of the amount of such tax, a
would be allowed in case of payment Of th'
same in money.
Whatever difference of opinion may exis
f as to the eXpediency of the Act there can b
none as to the authority of Congress to pas
it, nor of the duty OF the State to NEE
, promptly and fully its requirements.
In prOviving for the payment Of the tax
3 the interest of the State clearly requires it
collection and payment through its owl
! officers, and the enlargement of the basis 70
] the levy from real estate only, az eontem
plated BY the Act, to all property subject t
taxation for State and National purposes
which will distribute the burden of the ts1
3 more equally upon the people, reduce near
ly one. half the per centage of the levy, an
( be in harmony with our system Of taxation
As it will not be practicable for the Stat
- to collect the tax by the last Of June, on
| new valuation Of personal property, and up
! on the new structures for the year 1862,
recommend that the tax for the current yes
= be placed on the duplicate of 1861, and col
lected with the June installment Of Sat
taxes, as we'll for the purpose of exhibitin
TO the Government our readiness to meet al
its demands upon our resources and patriot
? ism for the maintenance Of its authority, q
0 to secure to the State the lust advantage
: result from prom pit payment of the eamoun
appOrtioned to it.
r To provide against failure of collection il
time, respectfully suggest that authOrit
, be conferred upon the State officers to TEN
porarily use any surplus or unexpended bal
; ances of General Revenue, and any money
received, or that may be due, from the Uni
ted States to this State, to be refunded Whel
the tax shall have been collected.
f Instead Of applying the unexpended bal
] ances Of these funds TO the payment OF tn
= Government tax, which would afford bu
D temporary relief, it will be more consisten
with the dignity Of the State, and in all res
! poets better financial policy, to apply then
ultimately to the payment Of our publ,
: debt, giving the preference to that portion
1 Of it created for war purposes.
Your attention is also directed to that por
2 ton of the Act laying an income tax on tn
; people of the United States.
: cannot but doubt the wisdom Of thi
measure. 1t seems 10 me the objections t
it outweigh sny good result that can be rea
sonably expected from its enforcement.
The authority for its collection is limited
to United States assessors and collectors
which will subject the people 10 the annoy
ance of numerous Federal tax-gatherers
which should be avoided if possible.
The tax is unequal in being levied only OF
those persons whose annual income exceeds
the sum of eight hundred dollars. I see NJ
} sufficient reason for this discrimination
Such ofour fellow citizens as have less in
! come a g as ready 10 contribute, proportion
ally TO their means, 10 the support OF tn,
Government, as those who will be subject 1,
the lax. deem it Of the highest i'm port
7 ance JhR, all possible distinctions shcuid bi
l avoided among the people il the demsndi
of the cover. ueur uooh their resources f1l
/ the suppression Of tho rebellion. Tae exis.-
ence OF Ihe natl n is in peril. l. is Of equs
value and attachment 70 all the people,
J Each should, therefore, aid in its preserve
tion in proportion TO his means. All arr
+ ready and anxious to do So Reside, the only
true basis of taxation is value. Upon
this principle cur State system is based
The experience of the people has confirmed
its wisdom. The most pressing exigeucy
only can warrant the adoption Of any other
: No such exigency appears to me to exist.
The Act further Discriminate between the
holders of United States and of State securi-
ties, in levying double the tax on the latter
it does on the former, and that without re-
gard to the portion Of State securities issued
for and used in the service Of the United
States. This is founded on what seems tC
me 10 be dangerous principle in view Of the
condition Of the country. The true policy o.
the Federal Government, in all its financial
measures, is to identify the States with it as
closely as possible, and 10 avoid, whenever
practicable, doing anything, by legislation
or othei wise, that will even seem not 10 en-
/ brace the loyal States, in their individual
character, in the dangers threatening the
Government. The peril is q common one t
both National and State organizations. The
destruction Of the former would, sooner o.
later, lead TO thst of the latter. Each should
feel the same interest in preserving and
Strengthening the other. Why, then, should
the Government depreciate the value Of
state securities, below that Of its own issue
to the amount Of the difference in the taz
. imposed