The south-western. [volume] (Shreveport, La.) 1852-1870, 1864-01-13
President Davis Message.
CoNT1SUED PROM FIRsT PACE. !

loan, with q pledge Of a small exDort ant,, ~,
cotton TO provide Tor the redemption Of the debt
AUS second session war was declared to exist
between the Confederacy and the United States
and provision was made for the issue of went
millions of dollars IN treasury notes. and far bor-
rowing thirty millions of dollars on bonds TboI
tariff was revised and preparatory rneaqnras
taken TO enable the congress to lew internal tax
alton at It's succeedingsession. These laws vvn,.a
passed IN May, and the States Of Virginia. North
Carolina, Tennessee and Arkansas having Joined
she Contederacy, the congress adjourned to meet
in the city Of Richmond in the following roon+h
Of July Q --'''i'-'
Prior to the assembling of your predecessors
III Richmond at their third session. near tho end
Of July, 1861, the president Of the United Stator
mad developed IN his message the purpose .to
make the contest q short and decisive ono y and
had called on congress for zoo, coo men and forr
hundred millions OF dollars. The congress had
exceeded the executive recommendation and had
authorised the levy ofhaIfa million of volunteers
besides largely increasing the land naval forces
of the United States. The necessity thus fret
became urgent that financial scheme sbouId 30
devised on basis sufficiently large for the yast
proportions Of the contest with which we we're
threatened. Knowing that the struggle, instead
of beng short and decisive, would be indefinite
IN duration, and could only end when the United
states should awaken from their deusion of con
guest, permanent system was required fully
%0thptGu ~ ti4e great eEIgeQClGS before as,
The plan devised by congress at that time was
based on the theory of issuing treasury notes
convertible, al the pleasure Of the holder. into
per cent. bonds, the interest of which was 10 Be.
payable in coin, and it was correctly assumed
that any tendency to depreciation that might
arise from over issue Of the currency. would be
checked by the constant exercise Of the holders
right to fund the notes at liberal interest paya-
blein specie This system depended for success
on the continued ability Of government to pay
the interest IN specie and means were therefore
provided for that purpose III the law authorship
she issues. An internal tax termed a war tax
vas levied, the proceeds Of which, together with
she revenues from imports, were deemed suffi-
cient for the object designed This scheme re-
CURED for its operation that our commerce with
foreign nations should not be suspended It was
not to be anticipated that such suspension would
be permitted otherwise than by an effective block
ade, and it was absurd to suppose that a block
ade, sufficient really to prevent access" to our
entire coast, could be maintained
We had the means, therefore, (ifs neutral ma
lions had not combined to aid our enemies BY the
sanction Of an illegal prohibition on their COM
merce,) TO secure the receipt into the treasury Of
coin sufficient to pay the interest on the bonds,
and thus MAINTAIN the treasury notes at rates
nearly equal to par in specie So long as the in
4erest confined to be thus paid with the reserve
0T coin pree Xlstlng IN our country, experience
sustained the expectations of those who devised
she system. Thus, on the first OF the following
December, coin had only reached premium OF
about twenty per cent, although it had already
become apparent that the commerce of the coun-
try WAS threatened with permanent suspension
by reason OF the conduct of neutral nations and
that the necessary result must be the exhaustion
OF our specie reserve. Wheat in the beginning
of the year, 1852, was selling at one dollar and
thilty cents per bushel, not exceeding, therefore
ats average price in time of peace The other
agricultural products OF the country were at SINH
dar moderate rates, thus indicating that there
was no excess Of circulation, and that the rate OF
specie was heightened by the exceptional causes
which tended TO its exhaustion without the pos
sibIlty Of renewing the supply.
This review OF the policy Of your predecessors
IS given in justice to them, and it exhibits thG
condition Of the finances at the date when fht
permanent government was organised.
In the meantime the popular aversion to inter
nal taxation Of by the general government haC
influenced the legislation Of the several States
and in only three Of them, South Carolina Mis-
sissippi and Texas, were the taxes actually col
lected from the people. The quotas deyolvin!
upon the remaining States had been raised b.
she issue OF bonds and State treasury notes. am
the public debt Of the country was thus actuall,
increased instead Of being diminished by tn
Saxation imposed by congress.
Neither at the first nor second session of til
present congress were means provided by taxa
Jl0n tor maintaining the government, the leglSia
ton being confined to auth0riSing further sale
Of bonds and issues of treasury notes Alth0ug
repeated efforts were made to frame q prope
system OF taxation, you were confronted with q
obstacle which did not exist for your predeces
sors and which created grave embarrassment /
devising any scheme of taxation. About two
thirds OF the entire taxable property OF the Cor
federate States consists of lands and slaves. Th
general power OF taxation vested 10 congress b
only temporary in its operation, asnot restrlc
ed by any other condition than that ''all dutle
imports and excuses should be uniform through
out the States fthe Confederacy." But the pc
rlanent constitution sanctonlng the princlp
that taxation and representation ought TO rest
the same basis, specially provides that "repr
sentatlves and direct taxes shall be apportIont
among the several States according 70 thelr r
spectlve numbers, which shall be determined (
adding to the whole number Of free persons, l.
eluding those bound to service for a term OF yea
and excluding Indians not taxed, three-Hths
all slaves"
1t was further ordered that a census should
made within three years after the first meetiT
of the congress, and mat mo capIJallon or oth
direct tax shall be laid, unless IN proportion
She census by enumeration herelnbefOre 70
taken"
II is plain that under these provisions, capt.
tion and direct taxes must be levied in proporu
to the census when made. Il is also plain tn
the duty IS iAposed on congress to provide I
making census prior TO the 22d February, loe
It may further be stated that accordingto me
ceive1 construction Of the constitution Of I
United States, IA construction acquiesced In
upwards of sixty years. taxes on lands 2
slaves are direct taxes, and the conclusion seer
necessarily to be, that, IN repeating, Wltho
modification in our constitution, this Iangua
ofthe constitution ofl787, our convention inter
cd to attach to it the meaning which has be
sanctioned by long and uninterrupted acqui
cence.
50 long as there seemed to be probability
being able to carry out these provisions OF
constitution in their entirety, and IN conform
with heintenton of It's authors, there was ar'
rinns difficulty IN framing any system of taXat