Weekly standard. [volume] (Raleigh, N.C.) 1858-1865, 1864-12-14
TREASURY DEPARTMENT, C. S. Al
RICHMOND, November 81, 1864. (
Hon r g TyoN

RlcuAoND, November 81, 1864. (
Hon. F. S. LYON,
Chairman Committee Ways and Means,
G s. House ot Representatives.:
SIR:-The doubts expressed as to the equality of
limiting the tax in kind for The support of the cur
rency to three articles only, have had my attentive
consideration, and my convictions have not under
gone any change.
Assuming the SUN of notes to be redeemed at
$4OO O00 200, and the proportion of North Carroll
ma, for example, at one tenth Or $40 600, 600 the
tax in kind for that State would be- in corn 90 OOO-
Ooo bushels; and it appears to me that the burthen
OF the tax is in no degree affected by the mode Of
payment Being one tenth Of the agricultural in
come, if paid in kind it would take from the farmer
10000, 600 bushels of corn; svd if paid in money
the value Of that quantity. Consequently the
State Of Virginia. paying the "ney into the Treas
ury, contribute thereby her equal share to the COM
mon burthen.
To extend the tax to all the present subjects Of
the tax in kind. would enlarge the sinking fund and
aiay the apprehensions of possible inequality bat
there IS something wanting besides sinking fund;
We want measure of value also Could we com
mence the immediate redemption Of the notes in
specie and give to all the assurance of receiving
payment on demand, the currency would rise At
once to specie value. Could we enter Immediately
upon the redemption in corn at 81 per bushel, with
the assurance of an adequate supply to meet all
demands, the appreciation, think, would be nearly
as rapid, and the restoration Of the value almost
complete. My impressions are that it would be
quite complete if the privilege of expectation could
be given to the purchaser
The uniformity Of quality that belongs to this
staple; its character article of food; its uni
versa use; and its simplicity as an article Of com
merce, combine to give it value more uniform and
stable, and more extensively known in our country
than that of any other commodity except gold and
silver. For this reason, had the supply OF corn
been equal to the redemption Of the notes within
reasonable time, and the Immediate funding OF
large proportion not been of such great importance,
would have inclined strongly TO the use OF corn
alone 10 encourage immediate funding and Sc
cure adequate means for the early redemption Of the
whole cotton aud wheat were added, but it must b.
admitted, l think that these additions impair, to
some extent the simplicity Of the plan, and the
tainty and invariabiy of the value of these notes.
Three classes of certificates, in unequal proportions
and of different value, must now be used in lieu Of
one certificate of uniform value. The necessity
however of providing an adequate fund rendered
this concession unavoidable. But to 90 further in
| this direction seems unnecessary.
II tobacco, sugar, rice, hay, hemp, &C., were in
troduced, the yield Of each, and the ratio it bears
to the Others, would have to be ascerlained, the
| comparative value to be determined, and another
class OF certicas for each to be issued in the just
proportion it bore to the Others This would great.
ly complicate the plan and seriously endanger its
successful execution, and at the same time define
and express with less clearnees and precision the
value of the notes.. More think would be lost
thereby, in that part of the plan which is designed
to clothe the notes with the attributes and qualify
them to perform the functions of money, than
would be gained by enlargng the sinking fund,
which is already ample. My impressions are very
strong that this view Of the subject is correct and
| hope the deliberations Of the Committee may
bring them to the same conclusions. Speedy leg
slation is of the utmost importance, and unanmity
would be of great value in inspiring confidence and
securing the cooperation Of the citizens and the
States. The latter may contribute greatly to the
| success of the measure, and at the same time ma
terially reduce the burthen of the tax.
Take the State of North Carolina as an example
Suppose her share of the debt created by the issue
of Treasury notes to be $40, 100000, and this nea
sure be not adopted but by funding or otherwise
the payment of the notes in money be provided for
in that case her citizens would have 900 t
pay in specie at future day. To raise this sun
after the war would require at least 50,00O00(
bushels of corn; while under the proposed plar
100000 bushels would Suffice 1t offers alSt
other and greater advantages Ii she can borrow
$4,000 600 in specie and sterling exchange, which
her banks may IN great degree supply, she may
in the ratio of 20 for l, buy up the whole sum o
$40, 100000 and reduce her indebtt dness from AZ
nhiiOuS " mllIUuS, 0uu ueE CitiAeilS FOH
the tax of 10000, 900 bushel, of corn. Or in othe
words, she may purchase 2o,oOO,0O0 bushels o
corn at 10 cents per bushel. 1t would be the in
terest of every State Think to pursue this course
whether her cilizens contributed to the tax in kline
set apart for the currency not. Ii Virginia, fo
example, purchase half the certificates for which
North Carolina was to provide the means Of re
dsmption, the benefit to be. citizens would be pre-
csey the same as that predicated Of North Carroll
na Each, upon the hypothesis stated, by the ex
pendture of 5 900, 600 in coin would acquire $50.
100000 in certificates North Carolina wou'
thereby commute a tax in kind of $4,000 00
bushels Of corn, and Virginia would levy tax Oh
other States of 10, 900 900 bushels Of corn. If tn
value Of corn in the market were 81 bushel
North Carolina, by laying out $1,000 900 now
would save SIC, 900 O9O and reimburse herself fo
money tax Of $l0.0O0,000
Venture respectfully to submit these reflection
to the consideration of the Committee, and remain
With sentiments Of great respect
Your most ob't serv't,
G. A. TRENHOLM,
Secretary of Treasury.
We present below the resolutions introduced By