The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1863-02-12
"a h.. always been considered within the control q tho law

OASN AA0AtA1O1 AAOA ~
always been considered within the control Of the law
s. be urged that the calling in the circulation
proposed viii cause too large and sudden contraction
the date Of limitation will show this objection be
sound The new circulation 10 DO issued after the LIST
hundred millions. II will be issued gradually and will
fiji up channels left by the funding Or the issues
will probably be in too early date The
at all times to this kind Of currency in that d.
4. fourth objection viii be found in the probable
effect on the price OF bonds The large amount OF currency
and s su w the supply 70 tine
OF the market will follow cannot be denied that the
price Of bonds win probably fall; but this fall WILL in
ton in the increased value Of the currency for which
they sold, and in which the interest win be paid.
Those classes OF the community which sell bonds from
necessity for the Of living viii probably gain
in the reduced market prices Of the articles which
they purchase than they will lose In the reduced market
value oil the bonds which they SELL Those who hold the
bonds on speculation would gain lose according to
them as investment will escape injury by simply holding
them according to their original purpose The contrac
terest paid them during the war and at the end Of it
they viii have security which will command price
which will amply repay their confidence
The most conclusive answer however, TO this objection
Is to be found In the fact that whatever be the
amount Of depreciation on the bonds cannot exceed
the depreciation IN the value OF the currency. II the
government must issue obligation in the shape Of
rercy to pay twenty one dollars for barrel Of 10un,
which IN normal condition OF the carrencv could BIO
purchased with seven s actually selling its paper at
third Of its face At the time by excessive is
sues II s disturbing all other values and all the CONNER
cia relations Of society. The depreciation tho bonds
could never reach this high rae neither would affect
the prices OF commodities commercial relations. IT,
then, reduced TO choice between evils the re-
| duced value 1.-THE bonds is manifesty the less.
H. We come now to the consideration Of the next great
| feature in the scheme. namely;-The tax. What
shall DO the subjects Of that tax and what amount should
1t raise?
The snb ects upon which tav mn he evnd are ynanv
and the expediency OF each involves questions which
IL is not proposed at present to discuss %
that tao upon property and income is mach 10 be pre-
fyrd 10 stamp dics, excise licenses and other Ike a1es
aoch caA for machinery veratios its character and
the part of Congress IN lis acceptance. The direct loo
heretofore levied has set in operation all the machinery ne
csy to euy daoter ana an income tdS could be collected
It seems that both these forms of tax should be
adopted TO lay sufficient tax upon property alone
would require too large increase in the of last
year. Such increase would operate with peculiar
hardship upon property producing no income On the
other hand tax upon income is so easily evaded that
Of Itself II would furnish an insecure 1t is
proper however, that income should be taxed otherwise
the whole profits OF speculation AID trade together with
those resulting from skill and labor, would escape contr
button propose, therefore, that tax be imposed upon
kind, excepting those below some minimum to be adj.
justed by Congress.
The next inquiry is as to the rates OF these taxes to
adjust which must first be ascertained what amount it
is necessary raise has already been show that up
to the LIST OF July next the Treasury notes in circulation
Deduct the circulation proposed to be left,
$50 ooo, goo
Remaining funded. .................$ $3.50 900 900
The annual interest on this sum at aght per
To this must be added the interest upon s-'00'''0O
about S1o0, 000 900 of 1850 notes. $500 600
And about 81, O00, 900 Of SIX per cent cerlif-
Gates. Observation-Disclosures. 5000 900
Also the interest upon eight per cent bonds
and stock, say about loo, 100000
Total. $4s ,sso, geo
raised by the tax The soundest considerations Of policy
would add as largely to this the people Of our
country can bear II the tax be made payable all kinds
OF Treasury notes it would absorb much Of the FIRST
Issues and, by reducing the TO be funded would
aba,e the orce OF the objections TO the scheme If sirty
millions Of nots could be thus called in, benefits ,ssu
The currency would promptly recover its value the
bonds would become an object of investment instead OF
being thrown on the market. aud and steady sys.
| tenn Of finance world he established.
ta1 one per cen o.. fcpsny Il i could be made as
ffoaecsrs as lda o'S. tcoa'd fae ioce the amount Of
ne last cor Tar. iosty .iioa. But nasmuch as pr-
IDOL; o. the STATES are in the hands Of the enemy, II
would be proper 10 make deduction of probably one
| millions
This would be subject to still further abatement
so long as the decision Of the Confederate Court Of
Carolina as TO the of Congress State bonds
remains nnreyersea Inc very large amount of mo.
I tax OF the last year, and the tax the was paid
everywhere, except by those who raised the question in
South Carolina For the ensuing year the would
DO different. II the same tax laid by Congress- IL il
probable that the holders Of state bonds would claim ex
empon under this decison and Congress itself might be
unwilling to re-enac, in the form. law which hal
been declared unconstitutional By the ordinate branch
OF the government until that decision Is reversed The
question Of snch magnitude aud involves such great in
forests that an appeal was taken. But this appeal
II be worthy therefore, of the consideration OF Con
gress, whether the question sbonld not be raised in
other form by taxing the income of tn bonds in the
hands OF the citizens The taxing power income la
the bands of the citizen for consumption may BE-
guished from that over state bonds specifically pro-
4 n.rfp Ia uxnt 10th.
public Interests demand that every proper effort should
be MADE to insne consideration OF the question in all
its aspects In either case however the would pro.
baby prove nppodoclirc until the quest shalt be
finally decided II T. necessary, therefore, 10 estimate
hund ed millions as the probable amount invested in
State securities, tx Of per would
one mi.iea Of dollars, and so much muat therefore be
abstcd from the Innate.
IN eihGitEq ne ,es n tdr incoss IL cais toss
10 whah eoa ,ser is ~ ,oue n he tgigt fop.rr u >
eltnt C9sedrdte Saes u nny be assumed that the pet
income Of this properly is measured b. the average
e legal Interests o the noney which represents valne
IT the tax laid upon income. and that income
i,huy returned, IL could in tbs way be esti-
mated with some degree Of accuracy. But the dev
5, many by which return o. net income can be eysded
10 make sud rctu unreliable resort e. gross in.
is therefore cx edient The difference between
tie Two must be al as 20 per cent but, nder existing
would be prudent 20 dis e. ard tho dic and
that the returns OF gross income will be abont equal to
the average rate o. legal interest u is believed that
tue proceeds Of skill speculation aud llbsr which
may be returned where no capita is Involved vii not
te iLb vary the result.
ia ei6s fo5,n .is n,ae 10 Congress s rcisof al
"a pF. ~ ~ fae cert. C5,fsuyote So's' ,csth ases
.ne. = coeced, uof 1852 "aRiicas ne ne oh lie
81 a'.oe's ~ tse tgr' "a account ~ sHfh pFcFig"s
j. aea tgoHi he Ieaeh n iaraen ohc fs obtr coni,a-
asiss, 70 lTre ~ oc,l nslp5e.. 1900 millions. The
oaf0re o. interest ~ ne Confederate So,ss MAY be
s.. jooa az per cant, ehch coeid pase me tcisi
iacamc esrai % say $50 md'ion. Ia. Of 10 per
cent this would produce the nboa twenty
eisht millions. aud this added TO the property tax OF
,hr,y.nvc misoos, pouia raise ioa II sisyt.rce
millions Of aota,s, or In round nssatrs, stf5 millions,
1 . ef