Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1864-07-15
Additional Taxation Needed.

1t is reported that number of mer-
chants, bankers and capitalists OF this
city aad Boston are urging Congress not
to adjourn until it has provided tor at
least one hundred and fifty millions more
by taxation. 1t is not creditable to our
legislators that they have to be memori-
allied to do their duty we cannot think
that Congress will adjourn till, at least.
the new Secretary of the Treasury has an
opportunity to present to it his plans for
the coming year. If it does the Presi-
dent will only have to call an extra ses-
sion.
The sum which it is proposed to raise.
in addition to the income now provided
| for, is absolutely necessary. More than
that, to raise this one hundred and fifty
millions additional will make an enorm-
Gus difference in our expenses for the cur
rent year; for we shall gain not only one
hundred and fifty millions, but by restor-
ing confidence and public credit, and low-
ering the premium on gold, prices, which
are now daily rising will fall, and the
government will be able to buy all its sup
plies cheaper. 1t must gain in that way
probably as much as by the added in.
come that is to say, if we raise one
hundred ane fifty millions we shall really
gain three hundred millons---inore than
a third Of the estimated expenses of the
year.
With proper legislation by Congress.
sufficient taxation, and a sound 6nanci;l
policy in selling our bonds. gold would
presently be forced down to $50 at least;
that is where it ought to stand to-day, and
would stand. according to the best finan-
cial opinions, if Congress would wisely do
its duty to the country.
We shall have to spend during the
current year about eight hundred mill
ions. The present tax scheme will
scarcely, in the opinion of men Of sound
/ Judgment and experience, yield more than
two hundred and fifty millions. We shall
have to borrow therefore, unless Congress
! lays additional taxes, five hundred and
/ fifty millions. Now the difference ih
borrowing this when gold is at 230. or
when it is at 150 is enormous. When
gold is at l20, greenbacks are worth $S3
SO per hundred dollars; when it is at
10, they are worth only s45 As per
hundred dollars; if it goes up to go,
hundred dollars in grecnbacks will buy
only s37 o.. Now the prices of neces-
sary commodities will inevitably rise
with the price Of gold ; and the govern.
ment must buy at these increased prices.
The difference between borrowing at
Il G-l0 in gold, say, and at G6 6G.l00 is,
as Will be seen by every one very great.
| IF, for instance, we sell five hundred and
fifty millions of bonds at l04 in paper
worth Al G-l0 we shall get but a little
over two hundred and tweuty-esht mill
ions in gold. But if we raise but one
hundred millions more in taxes, and by
that effort and judicious action otherwise
drop gold to 100, We shall be able to sell
the four hundred and fifty millions which
remain to be borrowed for paper worth
just three hundred millions in gold. That
is to say, We should get over seyenty-one
millions more for the smaller sum, under
the supposed circumstances, than We could
get for the greater amount nnder present
circumstances-ahd seventy-one millions
in gold at that
This example shows what terrible los-
scs Congress threatens the nation with.
through its unwillingness to do what the
people demand, tax vigorously, effectively
and sufficiently.
Nor is this all. With lower prices,
which will certainly follow upon lower
rate for gold, and the re-establlshment Of
confidence, every mau in the country will
be richer, more able to pay taxes, moro
comfortable, and it will be easier for the
nation to pay four hundred millions than
under present circumstances, with in
ereasing prices, it will be to pay two hun
cred and Gity millions.