The Richmond palladium. [volume] (Richmond, Ind.) 1855-1875, 1863-01-16


OF direct tax spportioned to any State shall
be liable to be paid or satisfied in whole oil
in part by the release OF such State. duly
executed to the United States, of any liqui
dated aud determined claim OF any such
State. Of equal amount against the United
States: Provided, that in case of such re-
lease, such State shall be allowed the same
abatement of the amount of such tax as
would be allowed in case of the payment OF
the same in money.
From the very beginning of the war. the
State was compelled 10 advance large sums
of money to equip and supply our volun-
teers. and. in fact, furnished supplies of
every kind until the Fall Of 1861. and it
was believed shortly after the passage of
that act, that our advances, over and above
all reimbursements, woul soon be sufficient
in amount to set off the amount of tax ap
portioned against the State. Accordingly
| opened a correspondence with the Secre-
tary of the Treasury on the subject, and
ascertained from him that the advances
made by the State on behalf of our troops
would be regarded as "claim" within the
spirit aud meaning Of the Act, and would
be admitted in payment Of the tax to an
amount which should be found due on set
element. After consultation with the Aud
itor, Treasurer and Secretary of State. aud
in conjunction with them on the--day of
December, 1861. filed in the offics of the
Secretary of the Treasury at Washington,
paper officially signed. of which copy is
herewith transmitted, in which we assumed
that the State would pay her portion of the
direct tax without the intervention of Fed
eral officers, and proposing to set OFF against
the same ike sum due 10 the State for
advances made in furnishing our troops. and
! to release the United States from further
liability for the sum thus set off aud advan-
ced against the tax. This paper was ac-
cepted by the Secretary OF the Treasury,
who thereupon declined to appoint the off,
GERS provided by the law to collect the tax
within this State. On the - day of jan
uary. 1862. Mr.. Lsnge, the Auditor Of
State, proceeded to Washington with the
papers and vouchers embracing our claims
against the Government up to that
time, for the purpose of making settlement
He found, however. that tn. mode of set
tlement with the several States had not
been determined upon, by the Treasury
Department. and that the press OF business
in the Department was such as to prevent
the taking up Of our accounts. He was di
rccted t. ile them in the Department to be
taken up for adjustment whenever they
could be reached. 1t then became obvious
that our accounts would not be settled
aud adjusted by the last day Of June, 1861,
so as TO be :" liquidated and determined "
within the meaning of the act Of Congress.
as before quoted, and that. after all, our set
off against the tax was about to fail
Accordingly. l brought the matter to the
attention Of our Congressional delegation,
and asked them to procure, il possible, such
legislation as would facilitate the settlement
of our accounts. and if that could not be
done, to procure an extension OF the time
in which accounts could be filed and settle
ments made, so that the advantage of the
set of need not be lost. After much trou-
bic and delay. they procured the passage OF
an Act, which was approved on the 18th
day of May, 1862, the concluding part of
which is as follows: provided, that in case
of such release. such Stale, Territory or
District shall be allowed the same abate-
ment of the am ouut of such Tax as would
be allowed in case Of the payment of the
same in money, shall be construed as apply
ing to such claims of States for reimburse.
ment Of expenses Incurred by them n en-
rolling. subsisting, clothing. supplying.
arming, equipping, paving and transport
ing its troops employed in ailing to sup
press the present insarrection against the
United States, as shall be fled with the
proper officers of the United States before
the thrteth OF july next. And in such
cases the abatement of fifteen per centum
shall be male on snch portion of said tax
as may be paid by the allowance of such
claims, in whole or in part. the same as if
the final settlement and liquidation thereof
had been made before the ,th of June
,1oA III nndpr
it we have fled with the proper officers, an
terror to the 3oth of July last. claims
against the United Stat-s, due TO the State,
more than enough to cover the amount OF
tax due from the State, after deductng the
fifteen per cent from the gross amount
By this operation the S:ate has saved ft-
teen per cent Of the original amount. which
is SI3573l 80. reducing The amount from
1904 876 33 to S765, 5,l44 O3. and the lat
ter sum is set off and paid by our advances.
The arrangement is mutually advantageous
to th. State and genera! Government
would do the Government no good to draw
a large amount of money from the people !
of the State for taxes, while she was debt
or to the State for still larger amount,
" bich Indebtedness must sometime be paio .
with money raised by TAXATION. BESIDES
this. the Government was In no coudition 10
reimburse the State in the full amount OF
her advances, and if these advances were
not used to pay the direct tax the tax must ,
have been collected from the people oil indl-
ana Immediately. while the advances would,
in all probability. remain as suspended
deb. for wears TO come, on which The GOV
ernmen,. if it followed former precedents,
vo,H nav interest. l respectfully recon-
mend that the Legislature approve my ac-
,;o, and that of the State Officers, in the
AT the las. session of Congress. the op
Grafton Of the act levyiDg the direct tax upon
the States was suspended for three years.
WAR KxPENsEs.
The whole amount of expenses incurred
on account Of the war. by the State, is ore I
,nill;ou nine hundred and sixty nine thou.-
and two hundred aod forty eight dollar.
and thirty cents. (s1,e69. PAS So y
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