Indiana State sentinel. (Indianapolis, Ind.) 1861-1865, 1862-02-17
sound financial Principles.

secured to us as people and nation.
sound Financial Principles.
The New York Assembly have had under dis
cusson 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 a sound financial policy by the
Federal Government. The New York Argus
says a strenuous effort was made to soften them
down and lower their Tone and especially TO get
rid of that portion of them which dsapproves the
policy of making a paper currency legal tender
for the payment of debts. but it signally failed.
The voice of the State of New York, as express
ed by the Assembly, is distinct and emphatic, and
afirms these positions:
l. That the payment of the entire interest on
the public debt should be secured by sufficient
permanent direct tax, pledged to this specific OBJ
ject.
2. That a sinking fund for the reimbursement
of the principal of the public debt should be ere
ated, set apart and pledged for that purpose.
3. That the direct tax of $50 900 ,O00 levied by
Congress last August, together with the duties
on imports. should be employed to defray the
current expenses of Government.
4. That the people of that State are willing to
pay by direct taxation their share of the interest
Of the public debt, and to share, with other loyal
States any burthens of the financial policy rec
commended; believing that such a 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 pay, nent of interest and principal.
These propositions are good, sound, whole
some. old fashioned Democratic financial doc
trine; and rejoice at their firm assertion at this
time, and that partisan appeals or insinuations
against their loyalty able to swerve the
members of the House from their integrity, or in
duce them to lower their tone. Financial firm
ness and sOundness now essential to the sal
walton of the nation. Mere issues Of Government
paper-even with 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 can be
done only by the imposition of sufficient tax to
meet the annual interest and make an annual
contribution to a sinking fund to redeem the prin
cipal. Do this, and the public credit will be
maintained; omit it, 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 me-
dium, with the legal tender clause, strenuously
urges the absolute necessity of promptly passing
a tax bill sufficient to maintain the credit of the
Government and to provide for its ordinary ex-
penses to prevent the issue of those notes beyond
the $3.50 goo 900 called for If this is not done and
If the Government is made to depend upon fur
ther nd larger issues of Treasury notes, it pre-
diets that great disasters viii follow such policy.
1t will be seen from the following extract, which
we copy from the money article of that print of
Saturday last, that it calls upon Congress to
make tax levy, which will put one hundred mil
lions into the Treasury before the middle Of
April. This il regards absolutely necessary to
maintain the credit of the Government and to
prevent ruinous disasters to the country The
Herald says:
We may now observe that the country is fairly
launched upon the sea of paper money, and that
the ultimate fate of our financial system will de-
/ pend largely upon the vigor and prudence of Con-
/ gress in dealing with the financial questions which
remain to be adjusted. The $3.50 ,000, 900 of
treasury notes to be issued will not necessarily
cause any great disturbance in values, if they are
not followed by further and larger issues. If the
$3.50 900 900 now to be authorized are to be fol-
lowed by $50, 900 900 more in the spring, and as
much more in the summer, values will inevitably
rise so prOdigiousy that great disasters will en-
sue and persons with fixed incomes will be ruined.
1t should, therefore, be the business of Congress
at once to provide against the necessity for fur
ther issues This can be done by acting Mt once
upon the tax BILL and rendering large proper
ton OF the taxes payable within sixty ninety
DAYS. III this is not done in the course of month
or two the treasury will again be empty, and there
will be no means of replenishing except by fur
ther issues of treasury notes made legal tender.
| With proper taxation $3.50 1000, 900 of treasury
notes ought to be enough to supply the wants of
/ Government provided they be made to flow
back into the treasury as fast as they flow out.
But If provision be not made Tor their speedy re-
turn TO the treasury through the channels of the
collectors of customs and tax commissioners, this
sum will only carry on the war for some ten
weeks-will leave but small balance, in fact,
after payment of the present floating debt of the
treasury, Not an hour should be lost therefore,
I'M adjusting the details OF the tax levy, and put
ting it through. Mr.. Chase ought to be assured
of receiving one hundred millions from taxes be-
fore the middle of April. The people can pay
taxes Just as well now as six months hence. and
Congress can pass as good bill next week as is
likely to be framed after a months incubation in
Committee. All that IL wanted is brief meas
ure taxing all kinds of documents transferring.
promising to pay, or securing money or property
Of any kind: all such articles OF luxury as car
riages, watches, jewelry and plate; the
incomes Of foreigners doing business here
without intending to becsme citizens !;
travellers in railways OF steamships /; pub
lie conveyances of all kinds telegraphic
messages real estate and personal prop
erty, &C., &C.. &c. The tax on these articles
should be payable on or before a certain date
say LIST of April--and should be increased FIVE or
ten per cent. IL not paid by that day. Combined
with this direct tax, there should be an excise
bill, levying excise duty on all native whis-
kies, ales, tobacco, sugar. &C. And. lastly, the
customs duties on sugar, tea, coffee, iron, lead,
hides wool, foreign silks, ribbons laces and other
dry goods should be raised so as to insure reye-
nue. from customs Of at least fifty millions on our
present reduced importations. II these measures