Prescott journal. [volume] (Prescott, Wis.) 1861-1871, 1867-12-14

ure OF value Will be continued. fpecula
ton will be continued, industry will
decline and a great risk be incurred
that financial health will only be OBJ
tanned by revulsion, the effect of
which upon the material interests and
credit of the country no one can esti-
mate. Such Revision the Secretary
is most anxious TO prevent, aud there
fore lie can not approve of the PROPOSE
ton for substituting notes of the United
States for national bank issues; but
recommends that the policy of .contrac.
ton be continued.
The net subject to be considered ia
connection with the permanent re-
sumption Of specie payments is the
maintenance OF the public faith, which
involves the necessity OF wise and sta
pie revenue laws, impartially enforced,
economy in public expenditures, aud a
recognition OF the obligation of the
government to pay it's bonds in accord
ance with the understanding under
which they were issued. TO tax wise'y
so as to raise large revenues without
expressing industry is one of the most
difficult duties ever devolved upon the
law making power. Taxation can new
er be otherwise than burdensOme, aud
il becomes especially SO when subject
to frequent changes. 1t is therefore of
great importance that revenue laws
sh0uld be stable.
The present tariff, although a high
one. has not proved to be protective,
while for the past two years it has been
highly productive of revenue. Bot the
g. -. 50
whose benefit it was in a great measure
framed, and the large revenues which
have been derived from it, do not prove
it to be. in any just sense, a FeveL ne
tariff 1t has failed to give to America
manufacturers the protection intended
to be afforded them, and it has yielded
much larger revenues Ehan anticipated,
because tue high prices prevailing in
the United States have slim ulated
importations. 1t does not follow,
because it is producing a large
revenue now, that it will continue to
do so WHOM business and currency shall
be restored to a healthy condition. In
order that the present tariff should he
a revenue tariff, an important moditica-
ton will be necessary, which cannot be
to be subject TO arrangement by ire
deemable currency. The Secretary
does not, therefore, recommend the
complete revision of the tariff at the
present session, bat there are some
features of it and some matters
connected with it which require
early attention. The system of specific
duties appears to have given much
satisfaction to the honorable dealers
and officers OF customs. Without re.
comending an exclusive adoption Of
specie daties, the Secretary would
suggest for the consideration of Cong
ress whether the system might not with
propgiety tie extended % all cOmmuni-
ties on which the duty bears a large
proportion to the value, or of which
foreign market prices are subject to
great fluctuations, or is from other
causes with difficulty ascsrtained.
The Secretary argues that the United
States is pledged TO pay its bonds. the
principal and interest, in gold, saying
they were negotiated with that under
standing. Good faith and public
honor require that these contracts
should be complied with in the spirit
in which they were made. Holders OF
our bonds at home and abroad who IN
derstand the character OF the people of
the United States, and the greatness OF
their national resources. ought not to
need an assurance that they will he
complied with. The importance of the
restoration OF the southern states TO
their proper relations with the federal
government eau not be over. estimated.
A punishment of the currency and
the maintenance Of the public
faith are not all that is required to re-
store the country to perfect financial
health. We need, in addition to these,
a united country. united IN fact as well
as In name. 1t may not be proper for
the Secretary in this report 70 discuss
the measures regarded by him as best
calculated to bring about this most de-
sirable result This, however, he feels
it his duty to say, that the question of
reconstruction, as a purely financial
question, is. in his Judgment, second in
importance to none that Congress will
ever be called upon to consider.
There is a general sentiment among
tax payers that the exemption of gov
eminent bonds from local taxation is
not exactly right, and that it ought to
be in some way avoided IN future IS
sues. The Secretary has no hesitation
in admitting that ne is in sympathy
with the sentiment. The difficulty IN
his way, however, as has been suggest
ed, arises from the fact that if bonds
hereafter to be issued were to be sub
iect TO local taxation very few would
be held where taxes are high. 1t Is a
matter of great importance taat GOV
ernment bonds should be a desirab e
investment in al parts of the country,
aud it is obvious that the states should
be in some manner compensated for the
right, now denied, of taxing them as
other kinds OF property are taxed.
After giving the matter careful con-
sideration, the Secretary can suggest
no better way of doing it than by the
issue of bonds, 10 be known as the con-
solidated debt of the United States,
bearing six per cent. interest, aud hav
ing twenty years to run, into which all
the other obligations of the Govern
ment shall, as rapidly as possible, be
converted-one- sixth part of the inter-
est at each semi-annual payment to be
reserved by the Government, aud paid
over to the states according to their
proportion.
DIAMONDS IN BRAZIL. We have been
gratified by visit from II. M. Lane,
ESQ, the agent for Ayers Pills. Sarsap-
arilla aud Cherry Pectoral, in South
America, who has iustvisited the mines
with his medicines, aud describes to
us the process of taking gems from the
earth. A driver places his gang of
slaves In mud hole, where the gems