The western Democrat. [volume] (Charlotte, N.C.) 1852-1870, 1863-12-15

sS,S Ses,a n,hii. cr.d;, ~'"''st exclusively ~
The first action Of the Provisional ConRre,, w,. ,
Of $l5.0OOOO0 by loan with pledge of sM.g sun
duty cotton 10 provide for the redemption az ~ pom
Al It's second session, war declared TO eTs, aebt
the Conedefacy and the ". States aud proyi.io Ween
for the issue of $4,000 900 in Treasury no M made
borrowing 900 on bonds. The isrig - and for
and preparatory measures taken to enable the
laws were passed in May, and the States ~ Va, Ihese
Carolina, Tcnnessee and Arkansas having ;o,1g N
federacy the Congress adjourned 10 me- !ueI Tie Con.
Richmond in the following month Of Jpy ." 'ne city d
Prior to the assembling Of your prcdee... ,
mond at their third session. near the end ID rs IN Rich
the President of the U. States had developed 1861,
sage the purpose "tdmAke the contest so w hs mes
one, and had called Congress for 400 OoS aesvs
fer $400,OOOOOO. The Congress had exceeded ~ aud
half million of volunteers besides largely incn.SyS
regular land and naval forces of the States Ms
cessy thus first became urgent chat financial .sh nc.
should be devised n basis sufficiently arpr Ear Inn
proportions Of the contest with which we were th,ss
Knowing that the struggle, instead of being "Sh vi
decisive, would be indefinite in Duration and coua i
end when the L. States should awaken from their Az
sion Of conquest permanent system was reuured G,
| adapted to the great exigencies before MS. '
The plan devised by Congress at that time waSbAs.s
the theory OF issuing treasury notes convertible n, H.
pleasure of the holder into per bonds the r,r,
of which to be paid in coin, and il was correctly A.,
sumed that any tendency to depreciation that might arise
from over issue OF the currency would be checked by the
constant exercise Of the holders right to fund the notes
liberal interest payable in specie This SYSTEM depcp
ded for success on the continued ability Of government 10
paythe interest IN sLecie; and were therefore pr
vded for that purpose in the law authorizing the ssu.
An Internal tax, termed tax, levied the pro
ceeds of which, together with the from imports
were deemed sufficient for the object designed Th,
scheme required for its operation that commerce with
foreign nations should be suspended II was not 10
be anticipated that such suspension would be permitted
otherwise than by effective blockade; and ID was sJ
surd to suppose that blockade" sufficient really pre-.
acc,ssto entire coast, could be maintained
We had the means, therefore, f neutral nations had not
tn nil Of
prohibition their commerce,) to secure the ut into
the treasury of coin sufficient TO pay the interest m
bonds, aud thus maintain the treasury notes at near.
y equal to par in specie. So long the interest conia
ued TO be thus paid With the OF coin pre- existing
country experience sustained the ohO,r
who devised the system Thus the FIRST Of the follow.
ing December, coin had only reached premium Of Abo
20 per cent although had already become apparent that
the of the country threatened with pcrms.
nent suspension by of the conduct Of ncua IA
tons, and at the necessary result musbc the exhaustion
of our specie reserve Wheat in the beginning ote year
1862. was selling at 81 80 per bushe not exccydng
therefore, its average price in time OF peace The obf
agricultural products OF the country nj similar mod
rates. thus indicating that there Of
circulation. and that the rue OF premium ON specie
heightened by the exceptional which tended 10 IL
exhaustion without the possibility of renewing the supply
This review of the policy of your predecessors Il given
in jusceto them, and exhibits the condition Of the nan
the date when hcpermRnent gov mrn organized
In the meantime the popular aversion 10 internal taxa.
ton by the general government bad intluncrd the egA
ton of the several Stairs and in only three OF thrm-S
Carolina Miss and Tcxas-werc the taxes actually coll
leced from the people. The quotas devolyng upon to
remaining States had been raised lay the ssu Vi bonds
and State treasury notes, and the public debt otc eoun
try was thus actually increased instead Of being diminish
ed by the taxation Imposed by Congress.
Neither ut the first second session Of the present
Congress means provided by taxation for maintaining
the government the legislation being confined 10 auhoz
ig further sales of bonds and issues oftcasury notes Al
though repeated efforts made to frame proper sys-
tenn of taxation, you confronted with Obstacle
which did not exist for your predecessors aud which
ated grave embarrassment in devsng any scheme OF tax
alton. About two-thirds Of the entire taxable property o
the Confederate States consist OF lands and slaves. The
general power Of taxation vested in Congress by the pro-
Yisional Constitution (which be- only temporary IN
its oprratiop not restricted by any other condition
than bst all duties, imposts and excuses should be UNI
form throughout The States Of the COnedcmcy hut the
permanent Constitution, sanctioning the principle thai
taxation and representation ought to lest on the same basis
specially provides that Representative and direct taxes
shall be aPporoned among the several States according
to their respective numbers which shall b" determined by
adding to the whole number Of fec persons, including
those bound service for of years, and excluding
Indians not taxed, thrcc-ffhs Of all slaves"
1t further ordered that census should be made
within three years after the first meeting Of the Congress,
and that capitaton other direct tax shall be laid
unless il proportion TO the enumeration herein
before directed to be taken"
1t is plain that undW these provisions cspa,on and
direct must be levied i'm proportion to the census
when made II is also plain that the duty imposed on
Congress to provide for making census Po' 20 e 20
Feby 1865 Il may further be stated uiat according 10
the received of the consueon OF the United
States "a construction acquiesced in Tor upwards OF SIXTY
! take
necessarily be ths. in repeating with
modification. in Constitution, this language OF the
constitution OF 1887 convention intended 10 attach TO
it the meaning which had bcon sanctioned by long and
uninterrupted acquesccnce.
So long there seemed to be u probability OF being able
to carry out these provisions Of the constitution in their
entirety and in conformity with the intentons Of its
thors there obvious difficulty in framing any sys
tenn Of taxation A Law which should exempt from the
buhen twohirds Of the property d the country would DO
unfair to the owners Of the remaining third would
inadequate to meet the requirements ofthcpubc service
The urgency Of the need such however, that, after
very great embarrassment and Of than three months
of assduous labor you succeeded in framing the law Of the
Oath April 1868. by which you sought to reach far
capital invested in real and savs and by Of
income tax and tax in kind the produce Of tho
soil, well by licenses business occupations and
professions, to command sufficient for the wants
Othe country. But very large proportion Of thcs" re-
sources could only be- made available the close Of the
present and the commencement Of the ensuing while
the intervening exgencies permitted delay In this
state of affairs. supernduccd almost unayoidably by the
fortunes of the n which engaged, the issues OF
treasury notes have been increased until he currency IN
circulation than $500 ,OOOOOO, moe
than threeOd the amount required by the business OF the
country.
need not enlarge upon the evil effects Of this condition
Of things. They unfortunately but too apparent IN
addition to The difficulty presented to the nrcirssy opera
lions Of the government, and the efficient conduct OF e
war, the most drplOrable Of all its results is undoubaE
its cOrrupting influence on the morals Of the prope lIs
possession of large amounts of casuy notrs has NATURALLY
led desire for investment and with constantly IN
creasng volume of currency. there has been an equAiy
constant increase Of price in all objects VI Investment
This effect has stimulated purchase by the apparent V
tainty of profit and aspirit of speculation las mus D
foSfr VIII has LII. innu