Holmes County Republican. [volume] (Millersburg, Holmes County, Ohio) 1856-1865, 1862-01-16

and 10 often misapprehended, as to this-held
q . fund for the protection OF the note holder,
but for the benefit of the bands themselEes.--
The sSafety Fund.-" SO to speak, from which
the note holder is protected, consists of the en-
tire capital. assests and means of all the branch
es, and it is the duty of the managers, IN case
of the insolvency of any one branch, to maze
immediate provision for the payment OF ths
sotss of such, in coin, By requisltIoh upon 'he
solvent bran ehes.
Thus in the exhibit above stated, the entire
four millions of coin is liable ior the reoemP-
zion of the notes of any insolyent branch:
Rpt this l. NOT the only means of sustaing the
credit of these issues in the evunt OF a failure.
Everv branch is required to receive the issues
Of such falling bank, in payment of all debts,
A. fbeir par value. This prevents their depre-
cation, as they are current in any part OF the
State for this purpose only. 1t is through the
operation of these two influences that the prin-
ciples of immediate availability. as distinguish
ed from that of ultimate security, has been at
tanned, whereby this system is distinguished
from all others.
The third object, that of apportioning the
banking capital of the State to the business
wants of its several parts or localities, is one
which can only be attained by periodical ad-
iustmentt of the same TO the changing develop
ments in the business activity, energy and de-
u,And of different eomunities. OF these the
Legislature Is Inc OeSt luQge.
1t is due to this institution that the fact
should be here stated that it has always show
ed readiness to aid the State in its financial
operations and under the administration OF my
Immediate predecessor, at the time of the dis
eovery of the great defalcation in the Treasury,
rendered such efficient aid as materially assist
ed in protecting the honor and credit of the
State. 1t has also made liberal investments
in the bonds of the State and OF the General
Government, issued to obtain the means of sup
pressing rebellion. / have looked TO it and
depended upon it; and still do, as a certain
source of greater assistance, it circumstances
should render it necessary TO call upon it.
Having thus called the attention of the Leg
islature to this subject. / will only add that |
regard IT as one of the most important that can
come before you at this session, and hope it may
be treated in the calm, unprejudiciai spirit in
which all purely business questions should be
acted upon and disposed of. l am aware that
questions as TO the constitutional powers of the
Legislature are involved respecting the manner
of effecting the object here recommended. These
] do not propose TO discuss, bat submit with
entire confidence to the wisdom of the Legisla-
ture In regard TO the mode and extent of taxa
tion required under the Con stitufion and laws
of the State, and other notifications which ex-
perienee may have shown to be necessary or
e1Pedient
i ne message next cOHSlQerS Cerialu pIOpoI- =
hons of the recent report OF the Secretary ofthe
Treasury to Congress, finding the most serious
objections to the Secretary suggestion in favor
of the gradual Withdrawal of the notes of pri-
vAte corporations and the issu in their stead OF
United States notes. The message discovers
serious if not fatal objections to both plans sug-
gested by the Secretary for furnishing paper
currency as substitutes for that now furnished
by the local or State banks.
invite your attention to the Act of Congress
of August last, "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 millions
of dollars is annually laid upon the United
States, of which one million FIVE hundred and
seven thousand and eighty nine and one-third
dollars is appropriated to Ohio as Its quota. 1t
provides for the assessing and collecting of the
tax, through United States officers, under the
direction of the Secretary of the Treasury, or by
the State, if it shall so elect, through Its own
officers, and its own way and manner. In case
the State shall assume to assess and collect it,
aud give notice by the Governor. or other prop
er 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 paw, or TO assess. collect and pay
pensation allowed to the q. S. officers, a deduc-
ton 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 ten per centum on such parts
Of the same as it shall pay prior to the first day
of October in the year TO which such payments
respectively relate. The act further provides
that the amount of the tax apportioned to any
State shall be liable 10 be paid. ad satisfied in
whole or in part, by the release of the State, du
ly executed to the United Statet, or any liquid
ated and determined claim of such State, of
equal amount against the United States, and
that, in case of such release, the State shall be
allowed the same abatement of the amount of
such tax. as would be allowed in case of pay
ment of the same in money.
Whatever difference of opinion may exist as
10 the expediency of the Act, there can be none
az to the authority Of Congress to pass it, nor of
the duty ofthe State to meet promptly and full
ly its Requirements.
In providing for the payment of the tax. the
interest of the State clearly requires its collec-
tion aad payment through its own officers, and
the enlargement of the basis 70 r the levy from
realestate only, as contemplated by the Act, to
all property subject to taxation for State and
National purposes, which will distribute the
burden of the tax more eqally upon the people,
reduce nearly one-half the per ceniage of the
levy, and be in harmony with our system of
taxation.
As it will not be practicable for the State to
collect the tax by the last of June, on a new
valuation of personal property. and upon the
new structures for the year 1861. recommend
that the tax for the current year be placed on
the duplicate of 1861, and collected with the
June insfallment of State taxes, as we'll for the
purpose of exhibiting to the Government our
readiness to meet all its demands upon our re-
sources and patriotism for the maintenance of
Its authority, as to secure to the State the lust
advantage to result from a prompt payment of
the amount aportioned 10 it.
To provide against failure of collection in
time. / respectfully suggest that au hority be
conferred upon the State officers temporarily
use any surplus or unexpended balances of Gen.
eral revenue, and any moneys received, or that
may be due, from the United States to this
Stale, 10 be refunded when the tax shall have
been collected.
Instead of applying the unexpended balances
Of these funds to the payment tax, which
would afford but temporary relief it will be
more consistent with the dignity of the State,
and in all respects better financial policy, to
apply them ultimately to the payment of our
public debt, giving the preference to that por-
tion of it cr' aied for war purposes.
Your attention is also directed to that Dor
ton of the Act laying an income tax on the
people of the United States.
Icannot but doubt the wisdom of this meas
ure. 1t seems to me the objections to it out
weigh any good result that can be reasonably
expected from its enforcement.
The authority for its collection is limited TO
he Tfntf cd Of ..I Ill