The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1865-01-20

clal proprlety OF an increase of taxation,
makes use of the following language: h
We are aware that one class of producers
the agricu1turists- not yet been burdened
with their fair proportion Of the national tax
alton. But as they are, par excellence, the
source of the national wealth, it was wise to
spare them as long as possible. Still even
with what taxation may yet be laid on the
farming interest, we are approaching the limit of
feasible and profitable taxation. -
The loans from the future must inevitably
diminish in value, and expenses increase as we
increase currency. No possible taxation and
no loans which we can probably place, can pay
all the current expenses of this tremendous
struggle. We are forced continually to resort
to paper, which is reducing the wealth of the
nation faster than the most oppressive taxa
ton. ia BID Ets
The only feasible course now for our Govern.
ment to meet the financial storm approaching,
Is, not to borrow more, but to save.
So far as the agricultural interest is con-
cerned, it may be safely presumed that if
Mr.. FEssENDENs recommendation for
tax on sales is carried into effect by an act
of Congress, farmers will not only have
to bear their fair proportion of national
taxation, but will be loaded down to such
an extent as to render farming an unprofit-
able business. This has been the effect of
such tax in foreign countries, and there
is nothing in the condition of the agricul-
tural interest in this country to exempt it
from such a result. We are of the opinion
that tax upon sales viii not result in an
increase in the government revenue to any
considerable extent, and such an increase
would be temporary in its nature. The
declension Of the agricultural interest
would more than counterbalance any good
results attainable by such tax. I'D a.aI
The Times is therefore correct in saying
We are approaching the limit of profitable
taxation, if such limit has not already
been realized. We cannot perceive that
the country is able to sustain itself under
an increased burden of taxation. But if
such limit has been reached, neither are
we able to perceive how the war is to be car
ried on simply by the process of economy
and retrenchment. which the Times very
wisely advocates "The Government, +"
says that journal, ito meet the financial
storm approaching, must not borrow more,
but save" This is very good policy if
the responsibilities of the Government
were simply limited to meeting the fnan-
cial storm. But in addition to this the
budget for the comeg fiscal year as en-
bodied in Mr.. FEssENDEN's Report, is also
to be met, and economy and retrenchment
will never suffice to do this. They will
partially assist to do it and that is all. If
the Government finds itself unable to place
any more loans in the market to advan-
tage, it has at last reached that point.
where an expansion of the currency has
become necessary if the war is to 90 on.
Even this is only a. temporary expedient,
leading to total bankruptcy. 1t appears
to US that an abandonment of the political
policy hitherto pursued towards the South,
and the adoption of wider, higher and
more liberal range of craftsmanship,
would result to the mutual benefit of both
sectious, not only ip q political but in q
financial point of view.