The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1864-05-20
Secretary Chase on the National
Banking system.

Secretary CHASE has addressed the following
letter to the chairman of the Senate Finance
Committee:
TREASURY DEPARTMENT, May 5, 1864.
SIR-Nothing but my deep sense of the i'm
portance of sustaining by every possible means
the public credit, upon which the sole Deepen
dence of the government to suppress the in
surrection must rest, would induce me to
address you this letter upon a subject which
has already received SO much consideration.
The bill in relation to the National banking
system, now under debate, is in the nature of
an amendment to the act of the last session.
Though complete bill in itself, it contains a
few provisions not contained in that act, among
which that in relation to the measure and dis
tribution of taxation may be regarded, Der.
haps, as the most important. Under ordinary
circumstances there might be no insuperable
objection to leaving the property organized
are almost all descriptions OF property, to gen
eral taxation, State, national and municipal.
But in the present condition of the country.
l respectfully submit that this particular de.
scription of property should be placed in the
same category with imported goods before the
entry into general consumption, and be sub
jected to exclusive national taxation
At the present moment the duties on inn.
ports form the sole reliance of the government
for means to pay the interest Ga the public
debt. II to these means the taxes to be paid
by the NltiOnal Banks shall be added, most
important addition will be made to these mea-
sures. The mere fact that these taxes are
made payable to the national government and
so rendered available for the payment of inter-
est on the public debt, and for the reduction of
its principal, will strengthen the public credit
and facilitate the negotiation of the necessary
loans at moderate rates of interest have no
doubt that such disposition of these taxes
would be worth more to the government dur
ing the present struggle, in practical results,
than three times the actual value of the taxes
themselves. . eel ..1 t.e .v
do not at all suggest that this description
of property should not be taxed as heavily as
any other description. On the contrary, I
think it just that it should bear its full prOpor-
ton of the public burdens. am only anxious
that the taxation upon it shall be made to con-
tribute as largely as possible to the general
welfare, and it is the conviction deeply i'm
pressed upon my mind that it will contribute
more when aggregated in one mass and made
to tell upon the general public credit than
when distributed between the nation and the
states and numerous municipal corporations,
that prompts me to address these views to you.
Under any plan of partition that may be
adopted the amount OF taxation distributable to
the several States and municipalities will be
comparatively small and unimportant. and it
alton of banking property for all purposes,
will be less than it will If taxed exclusively for
national purposes. The advantages OF parti-
ton to States and municipalities will therefore
be small, and the banks may not lose by it.
The nation alone will be injured. It will not
be understood, Of course that the foregoing
suggestions are intended to apply to real estate
held by any banking institutions; that descrip-
ton of property must necessarily be held BY
titles under State laws, and should properly be
subject exclusively to State taxation, except in
the event ola direct tax by Congress.
The case is otherwise with the personal pro-
Perty and credits OF the Banking Associations
These receive their organization from national
law and for great national purposes, and may
therefore with great propriety, and-as have
underworld to show at the present time-with
great public advantage be subject to exclusive
national taxation.
Respectfully yours, S.P. CHASE.
The Hon. VIM. Pitt Fessenden, Chairman of
the Committee on Finance Senate Chamber.