Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1863-11-27

, Taxation has been proposed Of the MOS: va
rious sorts. A tax on the entire gross pro-
percy OF the country; Il tax on the rett proper.
T., tax in kind exclusively, tax simply ra
currency, u tax absorbing and e1tinguishing =
; nil the currency Mt once. a tax aS inJrval; OF
! three months of 100000, ,0C1 then $500 000-
; 600, then S2CO,0Oo, 900, then 500, ,C00OOO
making in twelve months 81 900, ,000GoQ; Il
! tax on treasury notes of % per cent, taz OF
%3! per cent. q tax Of 100 rer cent. ASIDE
from tine general FAX on property, stamp du-
: ties, and legacy duties, aad the utmost dcyel~
opmcas Of the taxing power in all directions,
have been suggested.
These various propositions nearly complete
! the second Crop of schemes. The tax on cur
rency, instead Of on property in general, rests
~ tho same indeiensihie principle ss the
practice of impressment, and the proposition
% seize tobacco and cotton. 1t makes bur-
dans lall according 20 accident, and not ac-
cording to justice. Il is anarchy, reckless
and alarming. Isdcreats Tie sense of secnri-
tY in tie possession Of property, destroys tho
confidence Of the citizen in the government,
outlaws one class Of citizens, anl is ;subEc.-
siye os the Foundations Of soccty.
Let Us consider the comparative merits Of
1.
heavy, sufficient to absorb the surplus curran-
cY, and frequent enough to keep it down. 2.
OF u forced loan, with bonds given in ex-
funding, compelled by the necessity Of paying
taxes in coupons Of certain bonds, as proposed
by Mr.. ToOmhs, and partially endorsed in
eject by the South Carolina Banl, Conven-
ton.
Your correspondent, "Wayland," favo.s lie
down riyht iaxo:iou. lie would prefer t. ray
his share and lie done with it.. So wouii -
IF all were Of our minds, TIC rlatter might he
wound up rapidly. But there arc many who
might find this rather tnn stringent, too great
and sudden change. Qacry: lIow rar yroud
this throw the whole burden upo, ;ic States
now in our lines? Would it or not serve the
same purpose as funding il, distributing the
debt am0ng Ill the States ultimately FvTm:u,
the CGnfrderacY,
Maryland" objects, however, to the whole
funding sys!cm, on the gr"GDl thai t!c haAii
themselves circulate, constitute part of the
olrculation-worss than that: ere rcpro!rc>
live, and every six months issue rcw brood
Of currency. This objection, ifjust, is rndi-
ca!. The ''EHquircr" editorially seems to hold
the same dOctr!pc thai lorced lout conrcris
bands into currency, that funding thus will
;herctJfc answer ID purpose and success IL
rhnding will mean nothing, bonds being ulidrr
such circumstances merely an interess seariGg
currency, and selfncreasiug NJ that.
It is nbviors that this objection, if valid, is
conclusive. Bnt NC think il untenable. The
conclusive answer to it is to be found in thc
coalition annexed to the loan autlUrizing the
issue of the bonds, viz: thattazes are to be paid
in the coupons. Tho Enquirer" says: Tic
demand fl;- the bonds will be such as tn make
them currency" ,N9t So We think. The de-
maai will bs for bonds to hold, not 20 sell
TO keep them and Use tho coupons t" pay taxes
wit,al. We have long desired demand f4r
bonds, and s!rircn hard to create it. The
plc.e safe guard against their use IS car
ranc- is, that men nust not only ohtnln tbna1
% have coupons whcrewith to pay the first
tx. but retain them to pay taxes annually.
IL was however, 10 q forced l>au by di-c,.
meaas, instead Of by the meaus just proposed.
that the remarks Of til. "iia1uirnr" applied
Mr.. Grcgg's method is briefly this: 10 levy
u forced loan Of twenty-five per cont tor so
much n as n,a7 be necdcl) upon the whole pro-
perty of ,the country-givinG in exchange
bonds payable at certain dates, bearing not
less than seven per cent interest, anl receiv-
ing payment for the bonds in treasury notes,
or else in the notes Of the taxpayers til IN
seiyes-secured By q lien on the whale pro-
rersy Of the tax payer (which would be thus
locked up under first nnortagc). The no;cs,
wish their nortage lien on the property, and
with the bonds attached, government could
negotiate at'home or abroad.
This would occasion. we think. too dead
lock upon propcrtv-t)o universal and strln-
GENT. 1t is Liable also TO the strong obi &c ion
urged by MIR. Gregg 10 TIE tax in kind
giving the Government too mach t. do, ana
thas Of IL very scattered business. We doubt
whether it could-0r, - a!! events, ~ouid-
DC wluud up during the nc"o!ution-whIl"
the stress was upon us. We doubt greatly the
foreign d"mond. Personal confidence and
personal information arc very necessary to
investment Tho variance in rates OF ia.craSs
in countries, and even sections very accessible
20 each o.hor, are conclusive evidence on ths
mint. Ner does this plan, as proposed. pre-
vide for he exceedingly Important. p"lE' "t
reducing the debt largely, as well rs $hU:'aG
1t, form, by heavy taxation, n. a time when
the redundancy Of the currency renders Il
comparatively easy to bear. Nor does 1t pros
~ide against bonds themselves becoming Il
form Of currency.
The suggestion of Senator TGomlS stTik:s
Us as possessed of peculiar merit. le s /"
issue bonds with principal and interest payn-
bic in corn or its equivalent, aad adopt ma
stires to make tho payment certain. by E'rt-
ga.ing to the bona holders spccifc portion
nf the revenuc-thc. taxes on their tIcc ARE.
pealaJle, until the bonds are paid. and these
taxes parable only in coin or the coupons oi
tho bonds 10 alter or defeat the lien-in
order to any scheme Of repndlat!1n--won!d
require positive legislation, with tue concur
rent action OF all branches Of the Gsvarnment.
Tic Slj, 100000 loan, based on these princi-
pies, although tic coupons have not been pad
in coin, still commands large premium.
This schcmc is simple Oh is face. but works
a great variety uf results, and outfianks mary
difficulties, whether Of coa:titutionality or e1
rcdiency. although not profcssedly so, it is
in reality means Of compulsory. funding,
and can be made the means Of forcing in the
currency, and condensing ii rs 1t comes IN
any given ratio Of condensation, within GER
tain wide limits. And in go doing, it is fr.e
from the objection OF unequal pressure.
This plan is astringcnt-verv. 1t requiTea
of ! per cent. bond., Mt par, Sl42i to yield
one annual dollar coupon; of ner cent.
binds, sl6s. To yield Sl000,000 in cou
pons requires Sl+, 100000 of the former,
SlG.6GG, 6GG of the latter bonds. I the bonds
command q premium, then . still larger reia-
tive amount Of currency will be retired for
each dollar of coupons wherewith to Tay
taxes. AT premium of two for one On
par cent. bonds, S33 dollars of currency r.
tire to get ono in coupons at three for one,
$50 of currency. at four for one, sec and so
on. And the bonds san be made to command
any desired premium within certain limits
The machinery is powerful, fully equal TO- thst
OF direct forced loan, and at the sdme time
perfectly flexible. Each tax payer negos'ates
for himself, and not government for him.
lie may buy gold he may buy coupons
OF himself may invest in bonds. lie may ar
range with some capitalism in advanceto furnish
coupons. The money which went out dilute
returns condensed. Apowerful compress is
applied We do not mean to say nobody viii
he hurt, or the process will be easy; but that
the process is the easiest and most elastic
nj fl,n