The New York herald., 1863-01-12

Though never before was found necessary 70 impose
taxes heavy those levied BY The acts Of 1862 yet
twice before found exped,ent 70 require OF the
people contributions for the support Of the govcrnment IN
the form Of direct taxes The arst OF their i'm
position was 10 close OF the Revolution when they
were found necessary In order 70 audate tue debt ro
naming The second occasion during the war
OF 1912.
Though were q newborn nation in 1859, having
emerged from the long and dsprtng contest Of the
Revolution wore fortunate enough TO have at tho head
Of our Treasury Department whose Vows were as
clear able though had had years OF experience
In its management, and whose administration OF hs hgh
and responsible Office such to inspire conhdeuce IN
nation. sinking fund WAS established under the
control OF 6ve commissioner and 70 supply portion
Of the import duties specifically set apart aud IN
ternal duties levied by these the prompt payment
OF the public debt aud tho eventual liquidation
OF the debt itself provided for Nothing could have
been gratifying than the result OF this scheme
The market value OF debt raised from point
twenty Eve per cent below par twonty Eve per
cent above.
In 1918 IL was found necessary to impose direct
nua tax Of s. o0o which afterwards increased 10
80 the internal duties imposed TO pay the Revo
ltonary debt having beon repealed eoven years before
As nation our financial condition has almost always
prosperous At times revenue has been greater
than wo needed, and II has been found cxpedi-
ont to reduce tariffs and abolish internal dutios,
that our treasury might not overrun with money.
This prosperous condition has, however, becn
reversed during the past year, and is has
been . perpiexng question how 70 obtain tho ro
quse money without damaging tho interests OF the peo
pe Whether tho bost plans have been adopted or not s
a disputed question.
During tho year 1862 the greatest responsibility has
rested those having the management Of our national
finances. The enormous army has been fed, clothed,
equipped and maintained In tho feld at tmmonse ex
pcnse the navy has been largely increased, and its
efficiency promoted by the expenditure Of much treasure
throughout tho sessions OF Congress 1851 aud 1862
Therefore important wore introduced or
passed than those intended 10 give aid to tho treasury
The United States government had gcncray. up TO tho
beginning Of the rebellion been enabed to obtain ts re-
venue from the duties imports, by the payment OF
which indirect s levied the people and by sales
OF public lands But these OF Is
added the internal tax.
Whom became necessary to obtain loans, and even to
issue paper money it also bocamo necessary. iu tho
highest degree, to provide for tho payment
Of interest on those loans. and for the dnai
liquidation OF the debt thus created. This could be-
done In other way than by direct axation aud tho
Tax bill Of tho last session was therefore introduced
Tho adopted during tho year have been Or
three classes, each however, connected with tho other
namely
Loan bis authorizing The Secretary Of the Treasury
TO borrow money on tho credit OF tho United States.
H. Tho Tax bill, passed in order 70 give security to
those who advanced money 70 the government. and in
order 70 provide for the payment OF the interest on tho
III The Tariff laws. passed with the Same ioteut tho
Tax law.
Tho aots or lho Orst caaa xvara - roIlowa
Fv-The Treasury Note bill OF February Is, 1862 which
OF tho most important introduced. It's
principal provision that authorizing the Issue OF
$3.50 900 Of demand notes. 0 denominations not less
than S. Only $50 900 900 OF notes aHthsrzsd by
this law 70 circulate al any time $50 Of tho
$3.50 being In place Of those whose issue had al
ready besa authorized By The act Of Juiy H. 1851 and
which :he law required 70 be taken up and not rcsuod
The law OF February 25 1884, contained tho legal tender
clause making tho notes rocevabs Tor all dues except
duties on imports. Five hsndrod mlions Of the "Fve
Twenty" bonds also provided for which tho secrs
tary authorized disposs Of At market rates Il
appears that this last mentioned provision has not ops
rated avoraby. the Secretary in his last report
commended It's repeal for the following reasons
effect Of these provisions was 70 make negotiations
Of considerable Impossible for considerable
amounts seldom taken, oxcept with Wow 70
st prodt and resaios any prodt impossible under
ed and IL not allowed the taksr Of tho bonds expect
no advance. unless market value considerably b,low
par shall become established. Tho aot makes advance
above par impossible, By authorizing conversion or
United States notes into bonds At that rate"
Tho act OF which are speaking required duties
be paid 10 gold demand notes Of tho Hrs ISSUE and
set apart the coin received special fund tho pay
ent Of interest and for tho purchase ono per conum
OF the entire debt OF the United States
As all the demand notes rst authorized havc not been
redeemed the payment Of duties gold not yet been
resumed On the LIST OF January, 1s83 tho quantity OF
those outstanding will probably beaccordng to tho bos.
estimates-about Gil a5e 900. As il was necessary to
obtain gold with which pay the interest tho national
debt becoming due last November the absence OF any
receipts at the Treasury Department In con the Sub
Treasurer at New York adopted tho plan OF Offering
on deposit sold con paying therefor interest at the
of four per cont and agreeing the to tho
dcposors within specified timc notice having Hrs been
given OF the intention 10 withdraw such deposit The
plan emnently successful. vast amount Of gold
in the possession OF business firms and banks they
having invested largely In the safest way keeping
their money and it was, at time, Of tho best
OF articles which 10 speculate. This gold previous TO
this time had been lying Idle, being productive OF no In
torcst only abrdiug the prodt by is constantly
increasing value compared with that Of loyal tender
notes. When the oder was made, however TO take t 90
deposit and pay four per cont for maarestly for
the interest OF TO avail themselves OF the nterc
rather than allow the geld TO lilo Idle,
Sec~d-The second loan act Of the year was approved
by the President March IL 1862 authorized the issue
Of certificates Or indebtedness tho purchase Of coin ou
terms considered advantageous by the Secretary o tho
Treasury and made tho demasd notes OF the ors. ssue
legal tender.
rA~d-rhe third loan bill Of tho yeas was equally i'm.
portant with the nrst II WA approved July H. 1852
II ss,norsod tho Of $3.50 900 900 moro Of iexs su
der notes
fsSvth-rhs Postage Currency bill, approved July II
1882 may also properly be mentioned under the head or
loan bills, nasmuch authorized tho ssue or new
small note currency 10 take the place of specie which
bad gone out of circulation and by OF which, il
believed so 900 900 will DO loaned 70 tho government
.,sar