The Hillsborough recorder. [volume] (Hillsborough, N.C.) 1820-1879, 1863-12-16


wHnse birlhright Of freedom is dearer TO
them than life. A long exemption, from
direct taxation by the general government
had created an aversion to its raisng reye-
nue. BY any Other means than by duties on
imports. and il was supposed that these d.
'ies would be ample for current peace ex-
pendlture, while the means foe conducting
the war could De raised almost exclusively
BY the use Of The public credit.
The first action Of the Provisional Con-
gress was. therefore. confined to passing
tariff law and TO raising sum of fifteen
m,lions nf dollars BY loan, with pledge
ol small export duty Oh cotton to prpvide
Tor the redemption OF the debt
Al rs second session war was declared
10 exist between the Coniederacy and the
United States, and provision was made for
The issue of twenty millions of doilars in
Treasury notes and for borrowing thirty
millions Of dollars OH bonds. The tarifi
was revised, and the preparatory measures
taken to enable the Congress tolevy inter-
nal taxatlon at Ms succeeding session.
These Law, were passed in May, and The
States Of Virginia. North Carolina, Zen :
nes,ee and Arkansas, having joined th-
canlederaey. the Congress adjourned To
meet in the cily Of Richmond in The fol-
loving IN nth o July.
Pri.r 10 the assembling Of your prede
cessors IN Richmond. at their third ses
sion. rear the enj Of July. 1861, the Prmi
dent OF The United States had devel sped
IN hls message the purpose " to make the
contest 4 shurt and decisive one and
Mad called on Congress for 10000 men
aud faer hundred mlllIons Of dollars. The
Congress had exceeded the Execu,isere-
com,odatien. aud had authorized the lew
Of halt million Of volunteers, besides
largely increasing the regular land and ma
{ val fosces Of the tinted States. The ne
ce,sity thus FIRST became urgent iha, a Ii
nancial srheme should BE- devised on 4 ba
SIS sufficiently large FOR the vas, proper
! tions of the contest with which we were
threatened. knnw;pg that the struggle,
instead Of bews "short and decisive :
would be indefinite il duration. and could
uniy end when the United States should
awaken from their delu siun If conquest, d
permanent system was srequ,red fully adapt.
ed 70 the great exigencies before u.
The plan devised BY Congress at tha,
time was based on the theory Of issuing
Treasury mites convertible at the pleasure
!. o. the holder into eight per cent. binds
the interest vf which was 10 be payable ia
roin; and II was correctly assumed iha
, any tendency 10 depreciation that nigh
arise from over issue Of the currency, woul,
{ be checked by the constant exercise Of ibG
. holders right II fund tie notes III llbers
Z interest, patab'c IA specie. This sssteu
! depended for success on toe continued
i. ability of government TO paw the interes
IN specie. and means were, therefore, pro
| siIrd for that purpose in the law author
: izing the issues. An Internal tax, termet
: war tar, was levied. the proceeds q
j, which, together with the REVENGE iron
!. imports. deemed sufficient, for the object d.
ssacd. his scheme required rar lis ope
ration h,at our commerce with foreign IA
b iions should not be suspended. Il was NJ
/. tn be anticipated that such su.penslo
, would be permitted otherwise than by 2
! effective blockade andSt was ahslrd I
J suppose that a bocksdc /" suiiicient rpall
/. "a prevent access to our coast could
j. maintained.
d We had the means. therefore, (ii neutrS
I, nations had not combined 20 aid nur enc
J. mics bg the sanction OF an illegal prahib
: ton on their commerce. TO secure the re
n ceipt into the Treasury Of coin suflicier
= 10 pay the interest on the bou'ls. and thr
maintain the Treasury notes at rates neal
e ~ equal TO par in specie. 50 long as II
e interest continued to be thus paid with II
c reserve Of coin pre- existing 10 our countr!
!. exparienee sustained the expectations
c those who devised the system. Thus. Z
d the 6rst Of the following December, col
L had only reached preiaium Of about twel
u " per cent. although it bad already b
., come apparent that the commerce Of Il