The national Republican., 1866-12-04

loss BY the most skillful and economical builders.
But the evil does not stop hsrs II the only loss was
that which the country sustained By the disconin-
uAnos Of ship-building, there would BE- less cause
Of complaint. II 10 wsllsstablishsd general fact
that the people who build ships navigate them, and
that nation which ceases 10 build ships cssscs Of
| consequence, to BE- Q commercial and maritime ma
tion. Unless therefore, the causes which prevent
the building Of ships In the United States shall
ossss, the foreign carrying trade even Of our own
productions must bs yielded TO other nations To
this humiliation and loss the people Of tho United
States ought not to be subjected II other branches
Of industry are TO prosper, II agriculture 10 to be
profitable, and manufactures are TO bs extended,
the commerce Of the country must be restored,
| tanned and increased. The United States will not
be hrst-cass power among the nations, nor will
her other industrial interests continue long to
prosper as they ought II her commerce shall be
permitted to languish.
The same eauses-a redundant currency and
high taxss-that prevent ship building, tend to
prevent the building Of houses, and sysn Of manu-.
factories. 30 high are prices Of every description
that mon hesitate to build dwellings as fast as they
are required and thus rents arc 90 advanced as 70
bs oppressive to lsssees and the healthy growth Of
towns and cities 10 retarded. 30 II h In regard to
manufactures. Mills which were built before the
war can be run probably bat % expensive are
labor and materials that mills cannot bs erected
and put into operation with any prospect Of fair
turns upon the Investment, unlsss upon the expsc.
ation that taxes will remain they ars and prices
| be sustained, II they are not advanced. The same
causes are injuriously affecting agriculture and
other interests which II 10 not necessary to par
ticulariIe. II Is everywhere observed that existing
high prices are not only depressing the masses Of
| the people, but are seriously checking the do.
yslopment, growth, and prosperity Of the country.
1t Is not denied that the losses which the country
has sustained Of able bodied men BY the war 10 one
cause Of existing high prices, but mainly they are
the result Of redundant currency and high t.1s.
BY systems Of internal and external duties, which,
working In harmony, shall neither rspress industry
nor check enterprise, and which shall be so devised
as to make taxation bear most heavily upon those
who are most benefited BY taxes and BY the debt
| which renders taxation necessary, requires great
practical knowledge and wise ststssmanship. This
subject, always IN interesting one TO the heavily
indebted nations Of Europe, has become, - one Of
the results Of the war. deeply interesting to the
not, before stated intend TO discuss It, but hs
ventures TO suggest that the following general prin.
ciples, Of which have been acted upon By Con.
gress and the corectness Of all Of which have been
proved BY other nations, may be safely adopted a.
| guide to the legislation that 10 now required:
1st. That the fewsst number Of articles, consist
ent with the amount Of revenue to be raised should
be subjected to internal taxes, in order that the
system may be simple in its execution, and little
offensive and annoying a possible to the tax payers.
/
should correspond and harmonizs with the taxes
upon home productions and that these duties should
not be so high as TO be prohbtory nor to build up
home monopoies, nor to prevent that free exchange
Of commodities which is the life Of commerce. Nor,
on the other hand, should they be so low as 10 10.
riously impair the revenues to subject the home
manufacturers, burdened with heavy internal taIes
to composition with cheaper labor and larger cap.
ital which they may be unable to sustain.
Sd. That the raw materials used In building and
| mi n N nrin and - h. Isr- L.
HANGED in value BY the labor which is to be sI-
pended upon them, should be exempted from taxa
tiop or that the taxes upon them should be low In
comparison with tho taxes upon other articles
This 10 tho policy Of other enlightened nations, and
is believed that the dimnution Of direct revenue
which II would involve, II adopted BY the United
| States, would be more than made up BY the aug.
msnted value which u would give to labor. and BY
the increase Of productions and Of exports which
would be sure to result from 1t. Il should be con.
stantly borne in miad, that taxes upon raw mate.
rials directly increase the cost Of production and
thus tend either to reduce the product Of labor or
to prevent expectations to foreign markets.
4th. That the burdens Of taxes should fall chiefly
tion, and upon those to whom the public debt Is .
source Of wealth and profit, and lightly upon the ls
boring classes, to whom taxation and the debt are
without so many compensatory advantages.
The next Of the series Of proposed remedies Is an
Of eouas barring interest at the rate Of not
exceeding i've per cent. and payable in Europe, to
an amount suficisnt to absorb the six per cent
bonds In foreign hands, and supply the European
demand for United States securities for permanent
investment.
No one regrets moro than tho Secretary, the fact
that large amount -four bonds Is held abroad,
or the unfortunate condition of our trade that has
transferred them thither. The opinion that the
country has been benefited by the expectation Of
securities, Is founded upon tho suppositon that
We have received real capital in exchange for
them. This supposition Is, to largo extent, un-
founded Our bonds have gone abroad to pay for
goods, which. without thsm, might not have been
purchased Not only have We exported the surplus
products Of our mines and 6olds, with no small
amount Of our manufactures, but q large amount Of
securities also to pay for the articles which We
have purchased from other countries That these
purchases have been stimulated and increased BY
the facility paying for them In bonds can hardly
bs doubted. Our iuportations Of goods have been
increased by nearly tho amount of the bonds which
| have been exported. Not one dollar In Eve Of the
amount Of the fve.twenties now held In England
| and upon the continent, has been returned to the
United States In the form Of real capital But II
this were not truo statement Of the case the fact
exists has been already stated, that some three
hundred and fifty millions in Government bonds
not to mention State and railroad bonds and other
countries, which may bs returned at any time for
sale In the United States, and which, being held,
may seriously embarrnss our efforts to return to
specie payments. After giving the subject careful
consideration, the secretary has concluded that IL
10 advisable that he should bs authorised to issue
bonds not having more than twenty years to run,
and bearing low rate Of interest," payable in Eng.
land or Germany, to bo used in taking up the six
per cents now held abroad, and In meeting any
foreign demand for investment that may exist. The
question now to be considered 10 not how shall our
bonds be prevented from going abroad, for . large
amount has already gone, and others will follow a
long as our credit Is good and we continue TO buy
more than We can pay for In any other way, but
how shall they be prevented from being thrown
upon the home market, to thwart our Efforts In re-
storing the specie standard The Secretary sees no
practicable method Of doing this at an carly day,
but by substituting for them bonds which being
payable principal and interest In Europe will be
less likely to DO returned when their return least
desired. The holders of our securities in Europe
are now subject to great Inconvenience and not
little expense In collecting their coupons and It 10
supposed that Ave per cent or perhaps four and
half per cont. bonds, payable in London or Frank.
fort could DO substituted for our six per cents,
without any other expense to the United States
than tho triaing commissions 10 the agents through
through whom the exchanges might be made. The
saving Of interest to be thus effected would be no
inconsiderabe itemi and tho advantages Of having
our bonds In Europe placed in the hands Of actual
investors 10 too important to be disregarded.