The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1864-01-08

probably at no time In the history ~ ,hs
United States have the debts of the citizens
individually been so small, or the business of
the people conducted so nearly on a cash basis
as at tie present time. Though the prices OF
What our people consume have largely ad-
vanced, the price OF what they have 10 sell.
whether 1t be the product OF field. forest
ocean, mine, or mechanic art, enjoys an equal
enhancement and ready demand, and the same
= true OF the most unskilled labor As the
result OF this state of things there never was
tune when money was more universally in
Tue possession Of or within the reach of ali
In view OF which | submit whether. AZ least
ior The ensuing year, ii is not expedent TO
make some addition to the State tax sar;n1
to that extent the necessity of a loan.
For the details Of the financial condition os
the State and the operations Of the Treasury
which you viii find interesting and instruct
i've. refer you TO the report of the Treasurer
OF State.
BANKS, ETC.
In 1862 the Government of the United
States, and the banks OF the entire country
having by the exigencies OF the times Ieen
compelled TO suspend specie payments, the
Leg'slalafe ; Of this State passed an act, to ex-
pire IN year, exempting the banks thereof
from the severe penalty imposed BY their
charters for failure in this respect, not howey-
er relieving them from the duty of a faithful
performance of their obligations. This act
was renewed in 1863, the Government or the
United States having In the meantime issued
It's own circulating notes, and sanctioned the
same as legal tender. As the reason oriei-
nally existing for this legislation still abides,
enforced by the consideration that the legal
tender notes OF the United States will dis
charge all the pecuniary obligations As well of
banks as OF individuals, / recommend the
further extension of the same
In consequence of the imposition bv Con-
gress OF tax upon the circulation and depos-
its Of the local banks, the Legislature Of 1855
scondltionally remitted one-half the State tax
imposed upon our banks by theif charters.
This was clearly and only an act of justice, In
asmuch as national legislation by the tax, and
the creation of banks, infringed largely upon
the special and heretofore exclusive privile-
ges OF the State institutions, for the concession
OF which the State tax was the consideration.
1t Is now proposed to add still further TO
the national burden, upon the circulation and
deposit of these institutions. Such additional
duty Is recommended BY the comptroller Of
the currency, and has the sanction OF the
Secretary OF the Treasury of the United
States. Under the weight OF such additional
tax, 1t is clear, that the State banks at an ear
ly day, must retire from business; the remis-
sion Of the remaining half Of the State tar,
will be insufficient to enable them TO continue
in operation. The national tax on circulation
and deposits, exceeding two per cent, our do
mestic taxes, at least two more, the three per
cent. deducted from dividends for internal
revenue, to all which adding the expenses of
managing the institutions, leave SO small re-
siduum for the use Of the capital, that il will
be Withdrawn for some more profitable em-
ployment.
1nat an increase Of taxes under the inter-
nal revenue act, is demanded, to realize from
that source supplies equal to the necessities OF
the government, Is not TO be doubted; but
without further impositions, no class OF Sc
curities is subjected to so heavy q burden as
bank stocks. / assume, however. that the
object Of this proposed additional levy. on the
eiIcaiiioss sssd deposits Of the local banks, Is
in conformity with its probable effect, viz. To
cause them to give place TO the new national
banks, based on the securities of the United
States. The design OF these banks Is first to
provide uniform currency through the Uni
ted States; and secondly, by their absorption
OF the bonds Of the government for the basis
OF their circulation, to furnish supplies TO its
treasury.
The circulating notes of the banks in New
England have enjoyed such credit, as to
leave little 10 be desired in that particular.
The banks of Maine have well answered the
objects OF their creation, the percentage Of
loss BY failure has been Insignificant, the COM
munity understand their character and conhde
in the integrity of their managers. With one
or two exceptions, the banks now in operation
in this State, have been doing business from
ten to fifty years, in which time they have
earned the reputation they enjoy. But II the
occasion demands the surrender of the charter
of the local banks, to the end that the govern
ment may obtain its needful supplies, their
stockholders viii avail themselves Of the right
conferred by the Legislature OF 1868, 10 close
their several Institutions.
That the creation and general employment
of these national banks will tend decidedly to
strengthen the national credit, and, by eonse-
quence, the national government, by interest,"
ing pecuniarily every citizen in its stability, is
unquestionable. The diffusion of the national
stocks has largely produced that effect, while
the circulation OF bills, reposing thereon for
security, by the inevitable law of self-interest,
will command the aid OF every man who holds
a five dollar note, Ia upholding the govern
ment.
The finances of the United States have
been managed by the Secretary Of the Treas
ury with surprising ability, during a period
more trying, than il was, perhaps, ever the
lot of any other people TO pass through. The
credit of our country stands peerless, COM
manding its daily millions for the national
supply, and the genius which devised the sys-
ten by which this result has been wrought,
commands universal homage. But there Is
still another element, towering above all finan-
cial genius DIVISION, which cooperating
with the illustrious iiuancier, has placed the
national credit on rock. 1t is the uncalcu-
lating patriotism OF the American people,
pouring into the national Golfers their gar
nered wealth, which they had stored beyond
the computations OF the statiseian, with a
profusion which amazes mankind, trusting
their country as child its father, with con-
idence which will not shaken, while that
country needs dollar for its defense, and
they have the dollar to contribute.
MILITIA.
At the foundation Of our National Govern
ment, deep seated hostility to standing ar
mics existed among our people, and that
sentiment was truly represented by the men
who framed the Federal Constitution. British
regulars had been employed for their oppres-
sion, and our fathers took good care that no
such eiiectual instrument of tyranny should
exist under the governments they created.
That sentiment descended to their children,
and the standing army OF the United States
was never large enough to picket the shortest
boundary line Of the Nation.
But with all this feeling, these wise men
were not blind to the necessity in every we'll
ordered government, of competent military
for national defence, and to arm
the magistrate with the power of enforcing
the laws. Accordingly the constitution OF the
United States authorizes Congress TO provide
for organizing, arming aud discipiining the
militia Preserving to the States respectively,
the appointment of the officers, and the au-
thority OF training the militia. according 10
the discipline prescribed by Congress- Ar
tce two Of the amendments to the Constitu-