Evening star. [volume] (Washington, D.C.) 1854-1972, 1864-12-08
REPORT THE SECRETARY OF THE
TREASURY.

TREASURY.
The elaborate report Of Secretary Fessendsn
furnishes a well-aigestsd resume OF the past
and a thoughtful exposition Of the present con-
dition of our finances, with important sugges.
tions for their future management
Before procee ding with the operations OF the
Department since he was called to take charge
OF il, he revie ws the finan cal measures OF his
predecessor, and the various acts Of Congress
In connection there with, in order to show the
difficulty, in times like the present, Of ascer-
tanning accurately the prospective demands
upon the Treas ury, the most liberal estimates
having heretofore oeen found inadeq uate, and
also the lmposshlllty OF determining liked
pelicy in a condition of affairs subject to SO
many changes ana contingencies. In the
former case At is properly intimated that the
large increase in the military adjustment
and the rise oi prices consequent upon con.
ducting operations on scale OF immense mag
nitude, were such as to render the maintenance
OF the currency IN sound and natural condi-
tiop matter OF impossihility In the latter, it
Is said that III a Government like ours public
opinion is the controlling element, but that
opinion is not under the c rol Of those who
administer public affairs ence, amid such
vast fluctuations it has been found impractical.
BILE to sustain financial operations OF such i'm
measurable character upon specie basis. This
course was sugges ted not only as preliminary
to a fair comprehension of Mr.. FessenGen's
own acts, but as a matter of justice to the en-
barrassments which beset Mr.. Chase during
the trying period OF his Secretaryship.
For the convenience OF our readers we con-
dense below the principal items OF the tables
whi ch are presented in the report.
The national debt amounted on the 1st OF
July, 1854, to 81, 74O,G9 (sl7lO,6904s9 J!
The inrerts st on the national debt for the cur
rent year amounts to S9I,Sl0,2l5.1S.
From taxation and other sources the reve-
nue. Of the current year is estimated at sil9,-
5l2,3s9.
or thus amount customs yield s7O,27I,09l;
sources" S2i, ,920,i7
The interest payable in coin now exceeds
fifty. six millions per annum.
The daily expenditures is calculated at two
and quarter millions.
The Galy receipts amount at present to near.
ly a million and half, and If Congress lays
certain additional taxes, they can be brought
up to TWO millions per day.
There must be borrowed during the year
$780, 727,508. Fifty millions Of this sum, how.
ever, the Secretary thinks be raised by
additoDa! taxes TO be laid by the present Con-
gress. Deduct this, and also SIS $50, 800 Of the
public debt to be redeemed during the year,
and il res ults that the national debt will be in
creased during the year ending June 80, 1865,
by SiS2,37i, lSS.
The Secretary remarks that the high duties
have prevented lmportatlons and caused a fall
ling eff of the revenue from customs; he xpects
however, to make this up by gains from inter-
nal taxation. He desires to have such a sys-
tenn Of taxation as shall bring the internal rev.
enue up to thee hundred millions per annum
He recommends a tax on tobacco in leaf, tax
on sale, and that the income tax be collected
without exemptions, as the law as it is opens
the door TO ipnumerabe frauds and, in young
and growing country. the vast alority OF in
comes are small, while all participate alike IN
the blessings OF good government The adop-
tion of a scale augmenting the rate OF taxation
upon incomes as the rise in amount, though un-
equal in one sense, cannot be considered op-
pressiye unjust, inasmuCh as the ability to
pay increases in much more than arithmetical
proportions as the amount OF increase OF In.
come exceeds the limits of reasonable necessity.
From the results OF experience, as well as from
all the In form received, the secretary is
weli convinced that much revenue was not
collected through an imperfect execution Of the
law, and more through fraudulent evasion
Of Its provisions. He wisely suggests a com.
mission to examine the whole question oftaxa-
ton.
bearing notes.-the interest payable in curren.
cy-to be convertible at maturity into gold
bearing fve-tWenty bonds.
The experience Of the past few months, he
says, cannot have failed to convince the most
careless observer that whatever may be the
effect OF q redundant circulation upon the price
OF coin, other causes have exercised greater
and more deleterious influence. In the course
of few days the price OF this article rose from
about Sl5U to 50 50 in paper for one dollar in
specie, and subsequently fell in as short Pc
riod to 81 81, and then again rose rapidly TO
$3.50, and all without any assignable cause
traceable to an increase or decrease in the Cir
culation OF paper money, or an expansion or
contraction Of credit other similar inf luence
on the market tending to occasion fuctu-
alton so violent
1t is quite apparent that the solution Of the
problem may be found i'll the uupatriotic and
criminal efforts of Spectators, and probably
OF secret enemies, to raise the price of coin,
gardless Of injury inflicted upon the country
or desirable TO infict upon it, ALI such at
tempts should be Indignantly trowned upon by
patriotic community, and the efforts of all
good citizens invoked to counteract such nefa-
rlous schemes A law providing for The eX-
emplary punishment of combinations for such
purpose might tend to vindicate, If it could
not protect, the public rights in this regard,
and should be, far as possible, rigidly
forced. But whatever success might attend
any effort to check speculation in coin, or to
counteract its injurious effect it is still obvious
that SO long as there remains a large and in
creasing necessity for its use, and a limited
supply, it will command price commensu-
rate with the necessity and difficulty of obtain.
ing it. This necessity arises from the demand
for foreign exchange, for customs duties, and
to pay the interest on the public debt.
The matter OF foreign exchange he does n OF pro-
pose to dlscuss. The demand for duties on i'm
ports and that TO pay the interest large
portion OF the public debt are so tar identical
that one is dependant upon the other. Thela
authorizing the issue of bonds bearing interest
in coin, specifically pledged the revenue from
customs to the payment of that interest, and
provided for the collection OF these duties in
The same currency. In the opinion of the Sec
retary that pledge should not be violated
departure from it could only be yindicated by
one of those State necessities which justify a
nation in temporarily postponing its obliga-
tiops in order to preserve the power to dis
charge them at a future day. When the pledge
was given one anticipated possible con-
tinuance of the war for such length OF time
as would involve the increase Of the public
debt TO the point it has already attained. or
the possIble pay ment of interest in coin to an
amount hey ond the ability Of duties on imports
to supply.
II viii be noticed, however, that our annual
coin interest now exceeds S56,000,000. Should
the auditional amount required tor the expen.
ditufes of the present fiscal year be raised upon
bonds bearing interest In coin, and the venue
from customs not exceed the estimate predi-
Gated upon the receipts of the first quarter, it
is quite mariiest that resort must soon be had
10 some other source OF supply, or recourse
must be had to the emission of securities of q
different character. 1t could not be expected
that such securities would stand on q level
with those the interest upon which is PAYABLE
in coin, unless an increased value sho uld be
given them by higher rate Of in terest, or their
payment should be secured by q specific lien
upon revenue In view of the serious cousid-
Grafton presented by this question, whether as
afie citing the market value of coin or the abili-
tY uf Government TO meet its snecific fntarast