Semi-weekly standard. [volume] (Raleigh, N.C.) 1853-18??, 1863-12-11


to enable the Congress to levy internal taxation at
its succeeding session. These laws were passed IN
May, and the States of Virginia, NOrth-Carolina,
Tennessee and Arkansas having Joined the Coined
eracy the Congress adjourned to meet in the City
of Richmond, in the following month OF July.
Prior to the assembling of your predecessors IN
Richmond, at their third session. near the end OF
july 1861. the President of the United States had
developed in his message the purpose "to make
the contest short and decisive one" and had called
on Congress for 100000 men and four hundred
millions of dollars The Congress had exceeded
the Executive recommendation, and had authorized
the levy of half million of volunteers, besides
largely increasing the regular landand naval forces
of the United States The necessity thus tlrst be-
came urgent that financial scheme should be de
vised on basis sufficiently large for the vast pro-
portions OF the contest with which We were threat
ened. Knowing that the struggle, instead oil being
"short and decisive" would be indefinite III dura.
ton, and could only end when the United States
should awaken from their delusiOn of conquest,
permanent system was required fully adapted to
the great exigences before US.
The plan devised by Congress at that time was,
based on the theory of issuing treasury notes. con-
vertible at the pleasure of the holder into eight per
cent bonds, the interest of which was to be paya'
BILE in coin, and it correctly assumed that any
tendency to depreciation that might arise from over
issue Of the currency would be checked by the con-
slant exercise of the holders right to fund the
notes at liberal interest payable IN specie. Inns
system depended for success the continued aoll'
ity of the government to pay the interest IN Specie
and means were, therefore, provided Tor tnat pur
pose in the law authorizing the issues. Aninter
nal tax, termed war tax, was levied, the proceeds
of which, together with the revenue from imports
were deemed sufficient for the object Designed
This scheme required for its operation that our
commerce with foreign nations should not be suS
pended. 1t was not to be anticipated that such
suspension would be permitted. otherwise than bF
an effective blockade; and it was absurd to sup
pose that blockade " sufficient really to prevent
access to our entire coast could be maintained
We had the means, therefore, (if neutral nations
had not combined to aid our enemies oy the sane
ton of an illegal prohibition or their commerce.
to secure the receipt into the Treasury Of CON- sum
cient to pay the interest on the bonds, and ia
maintain the Treasury notes at rates nearly eIIa
to par in specie. So long as the interest continued
to be thus paid with the reserve of coin existing
in our country, experience sustained the eXpecta-
tons Of those who devised the system. Thus, On
the first OF the following December, coin had only
reached premium of about twenty per cent. al
though it had already become apparent that the
commerce of the country was Threatened whisper
manent suspension by reason OF The conduct OF ned
trail nations and that the necessary result must be
the exhaustion of our specie reserve. Wheat, III the
beginning of the year 1862, was selling at dol
lar and thirty cents per buSbel exceeding there
FORE Its average price IN time of peace The other
agricultural products of the country were at similar
moderate rates, thus indicating that there was no
excess of circulation and that the rate OF premium
on specie ightened by :he 'n;ioRal causes
which tended to its exhaustion Without the pos
sibility of renewing the supply.
This review of the policy of your predecessors Is
given IN justice to them, and it exhibits the cond
ton Of the finances at the late when the permanent
government was organized
In the meantime the popular aversion to internal
taxation by the general government had influenced
the legislation Of the several States, and in only
threeot them, South Carolina, Mississippi and Texas
were the taxes actually collected from the people
The quotas devolving upon the remaining States
had been raised by the issue Of bonds and State
Treasury notes. anu the public debt of the country
was thus actually increased instead of being dimn-
iShed by the taxation imposed by Congress.
Neither at the first nor second session Of the
present Congress were means provided by taxation
for maintaining the government the legislation be
ing confined to authorship rtherSaleS of bonds and
issues of treasury notes. Although repeated efforts
were made to frame proper system of taxation,
you were confronted with an obstacle which did
not exist for your predecessors and which created
grave embarrassment in devising any scheme of
taxation. About two thirds Of the entire taxable
property of the Confederate States consist Of lands
and slaves. The general power Of taxation vested
in Congress by the provisional Constitution, (Which
was to be only temporary in its epcration,) was not
restricted by any other condition than that "all
duties, impOSts and excuses should be uniform
throughout the Safes of the ConfadeTacy." But
the permanent Constitution s1nctioning the pr!nci
pie that taxation and representation ought to rest
on the same basis, specially provides that "repre-
sentatiVes and direct taxes shall be appOrtioned
among the several States according to their respec-
tive numbers, which shall be determined by adding
to the whole number OF free persons including those
bound to service for term of years and excluding
Indians not taxed, three.fiiths of all slaves"
It was further ordered that census should be
made within three years after the first meeting of
the Congress, and that no Ptaon or other direct
tax shall be laid, unless in proportion to the census
or enumeration heninbclOge directed to be taken"
1t is plain that under these provisions capitation
and direct taxes must be levied in proportion to the
census when made. 1t is also plain that the duty is
imposed on Congress to provide for making census
prior to the 22d February 1866. 1t hIay further be
stated that according to the received construction
the Constitution Of the United States "a construction
acquieSced in for upwards of sixty years. taxes on
LANDS and slaves are direct taxes and the conclusion
seems necessarily to be that in repeating, without
modification, IN our Constitution, this language Of
the Constitution Of 1851 our convention intended to
attach to it the meaning which had been sanctioned
by long and uninterrupted acquieScence.
So long as there seemed to be probability of be-
ing able to carry out these provisions of the Con.
sttution in their entirety, and in conformity with
the intentions of its authors there was an obvious
difficulty in framing any system of taxation.
law which should exempt from the burthen two
thirds of the property of the country would be as
unfair to the owners of the remaining third as il
would be inadequate to meet the requirements o.
the public service.
The urgency of the need was such, however, that
after very great embarrassment, and more thar
three months of assiduous labor you succeeded ir
framing the law of the Oath April, 1863 by which
you sought to reach so far practicable every
of the country except the capital invested
in real estate and slaves and by of an income
tax and tax in kind on the produce of the SOIL a
we'll by licenses on business occupations and pro
LESSONS; to command resources sufficient for thu
wants of the country. But very large proportion
of these resources could only be made available a
the close Of the present and the commencement o
the ensuing year, while the intervening exigencie
permitted no DELAY In this state of affairs super