Semi-weekly standard. [volume] (Raleigh, N.C.) 1853-18??, 1864-12-09
TREASURY DEPARTMENT, g. s. Al
-, RIcuNoND, November 81, 1854.

HON. Il. y. LYON,
'.:S Chairman Committee Ways and Means
10 81 ,i..5s G.. s. House of Representatives.
SIR:-The doubts expressed as to the equality of
limiting the tax in kind for the support of the
rency to three articles only have had my attentive
consideration, and my convictions have not under
gone any change.
Assuming the sum of notes to be redeemed at
$4O0, 00000 and the proportion of North Carroll
ma, for example, at one-t tenth $40, 600 000 the
tax in kind for that State would be, in corn, 20 000
600 bushels; and it appears to 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 1T would take from the farmer
10000 900 bushels of corn; ay1 if paid in money,
the value of that quantity Consequently the
State OF Virginia, paying the m rney into the Treas
ury, contribute thereby her COAL share to the
mon burthen.
To extend the tax to all the present subjects OF
the tax in kind, would enlarge the sinking fund and
alay the apprehenSons of possible inequality; but
there is something wanting besides sinking fund
we want a measure of value also. Could we com
menee 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 that it would be
be given to the purchaser
The uniformity of quality that belongs to this
staple; its character article If food its uni
Versa use; and its simplicity 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 a
large proportion not been of such great Importance
would have inclined strongly to the use of corn
alone. To encourage immediate funding, and Sc
cure adequate means for the early redemption of the
whole, cotton and wheat were added but it must be
admitted, l. think, that these additions impair, to
some extent, the simplicity of the plan and the
tsnty and inVarability of the value of these notes.
Three classes of certificates in unequal proportions
and of different value must be used in lieu of
one certificate of uniform value. The necessity
however of providing adequate fund rendered
this concession unavoidable. But to go further in
this direction seems unnecessary.
If 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 ascertained, the
comparative value to be determined, and another
class of certicatS 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 wSuld be lost
to eothe the notes with the attributes and qualify
them to- perform the functions of money, than
would he gained by. enlarging the sinking fund,
which is already ample. My impressions are very
strong that this view of the subject is correct and
l hope the deliberations of the Committee may
bring them to the same conclusions. Speedy leg
isati0n is Of the utmost importance, and unanimity
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.
Taksthe State of North Carolina as an example.
Suppose her share of the debt created by the issue
of Treasury notes to be $40 000 600, and this mea
sure be not adopted, but by funding or otherwise
the payment of the notes in money be provided for;
in that her citizens would have $40 600 600 to
pay In specie ut a future day. TOraise this sum
after the would require at least 50,0OO,000
bushels Of corn while under the proposed plan
10000, 600 bushels would suffice 1t offers also
T other and greater advantages. If she can borrow
81, 0000 600 in specie and sterling exchange, which
her banks may in great degree supply, she may,
in the ratio of 20 for !, buy up the whole sum Of
$40, 100000 and reduce her Indebtedness from 40
millions millions and relieve her citizens from
the tax of 90 600 900 bushels Of corn Or in other
words, she may purchase 20,OOO,OOO bushels OF
corn at 10 cents per buShe. 1t would be the in
terest of every State think to pursue this course
whether her citzens contributed to the tax in kind
set apart for the currency not. If Virginia for
example, purchase half the certificates for which
| North Carolina to provide the means of re
demption, the benefit to her citizens would be pre-
cisely the same that predicated of North Carroll
ma. Each, upon the hypothesis stated, by the ex-
penditure OF 81, ,00O0 600 in coin would acquire $50,
| 00O, 900 in certificates North Carolina would
| thereby commute tax in kind of $40 000, 900
bushels of corn, and Virginia would levy tax on
other States of TO- 100000 bushels of corn. If the
value of corn in the market were 81 bushel,
North Carolina, by laying out $l,OO00O0 now,
would save $4,000 O9o, and reimburse herself for
money tax of $4,000, 900.
venture respectfully to submit these reflections
to the consideration of the Committee, and remain,
With sentiments of great respect
| Your most ob't serV't,
G. 4 TRENHOLM
| Secretary of Treasury.