Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1869-12-08


payable either here or in Europe, as tn
subscribers to the loan may desir,
y Fourth. That the rate of interest shall nc
7 exceed AZ per cent. per annum. Fiji
That subscribers in Europe shall receiv
theif interest at London, Paris, Berlin @
! Frankfort, as they may elect. Sixtl
THAT the bonds, both principal and inter
| est, shall be free from taxes, deductions O
abatements of any sort, unless It shall b
/ Thoughts wise to subject citizens Of III
/ United states to such tax upOn incom
| and from bonds as is imposed by the law
of the United States upon incomes dc
! rived from other money Investment
There are two reasons, and each seems L
be the controlling reason, why bond
/ should be exempt from State and loca
/ taxes; If NOT so exempted, the amount o
the tax imposed by the local authorit,
/ viii be added TO the interest the Govern
! uent VIII be required to pay, and thu
/ the National Government will be com
/ PEELED to provide for taxes imposed BIZ tn,
I local authorities. Secondly, insismucl
as The ability to borrow may, under SOM
/ circumstances, be essential 10 The preser
! walton OF the Government, the powers
should not, even in time of peace anC
1 prosperity, be qualified by any concession
/ 10 the STATES OF the right TO tax the mean.
| by which the National Government /,
maintained. The right to use lawful pow
crs. free Of any condition, restriction ol
CLAIM of another, is an essential condi
| tiOn of sovereignty, and the National GOV
ernment should neversquander or qualify
its power in this particular. In offering
the new loan. citizens and subjects o
other governments should receive th,
strongest assurance that the interest and
principal is TO be paid in coin. according
TO the terms Of the bonds issued, without
any deduction or abatement whatsoever
In order to avoid the necessity of employ
ing an agent for negotiation of the loan.
[ respectfully recommend that a liberal
commission be allowed TO subscribers
and that those who first subscribe be per
mitted 90 selectthe class Of bonds in which
this subscription respectively shall bc
made. ! further recommend, in connec-
ton with the proposed loan, that the
banks established under the act to pro-
vide national currency be required %
substitute bonds that may be issued
July next, but that $3.50 600, 900 at least
should be suffered to remain either fol-
purchase or redemption previous to 1874.
Should the sum of $3.50, 600 600 be left for
that purpose, the entire public debt would
be in condition TO be easily redeemed
between 1874 and 1881. The 1910 bonds
could be paid, and provision also made for
the redemption OF bonds which VIII be-
come due IN the year 1881. 1t may be wise
to reduce the loan to 81 ,U00. COO, 900, which
would leave for payment previous to 1881,
the sum of about 500, 100000, or hardly
more than S600OO,G coo a year. Assuming
that the proposed loan will be for an
amount not exceeding 500, ,OO0.O .O0O, / re-
commend that ii be ofleredin three classes
of SfO0, 600, 600 each, the first class of $780,
900 600 to be payable in fifteen years, and
to be paid in twenty years; the second
class Of S400, 100000 to be payable in twen-
ty years, and TO be paid in twenty-five
wears; the third class of 500, 600 600, TO be
payable in twenty-five years, and to be
paid in thirty years. The essential con-
dition of the new loan appears to me 10
be these: first, that the principal and in
terest shall be made payable in coin; sec
ond, that the bonds known as five-twenty
bonds ball be received in exchange Tor
new bonds; third, that the principal be
payable in this country, and interest
under the proposed loan for those now
deposited rs security for the redemption
oftheir bills. Should any bank be un-
willing to accept The new condition, pro
vision should be made for the surrender
of rs charter and authority given for the
organization of new banks TO supply the
deficiency thus created. An essential
condition to the success Of the proposed
new loan is the continuance fJhe pres
cnt revenue systematic chief means by
which the holders of the 90 bonds can
be Induced to surrender them and r2ceiye
"a bond upon longer time and at a lower
rate OF interest is the certainty furnished
bv the magnitude of the national revenue
that these bonds are soon TO be redeemed.
We must be prepared to Oiler them as an
alternative either Of accepting the bonds
at a lower rate of Interest or the payment
Of the principal of the existing bonds.
When the APO bonds shall have
been funded 20 1n6 amount of
u $50, ,O0O 900 or 81 ,200, 100 go, the reve-
nues ran be reduced materially, and vet
sufficient sums be raised 10 meet the Ordi-
nary expenses Of the GONernmeHt, pay
the interest on the public debt, and also
TO pay $500, 600 to sa0oO,GOO nj the princi-
pal annually. Should our success IN ne
gotiaiing a loan be equal To my eXpecta-
ton. based upon the TACT that the ability
and disposition of the people of the United
S.ates are sufficient to Justify US in assum-
ing ponds Of tEa United States, which
will conlma.id the highest rate in the
markets Of tho world. We shall then be
in a condition 10 enter on the work Of
reducing taxation at the commencement
of the next session Of Congress.
On the 30h OF June, lSJS, the amount of
outstanding tLrae per cent. certificates
and compound interest notes, pGngeEtihie
S7I, 60. $50; on the 30th Of June,
1862 the amount outstanding was S54,
4gI ,4lG. showing a reduction OF SIG, ,6lS,4
IN that form Of indebtedness, On the lst
Of December 1869, the amount outstand
ing was still further reduced to $40 76l ,I50,
showing o total reduction in seventeen
months OF SI2, SSS,740. The three pes cent.
certificates are a substitute, to consider
able extent. r,T tho United States, being
H,sFA a l.rrN nj
Their reserve, md thus Indirectly, though
not their full nominal value, they
swell he volume OF currency. / recon-
mend hat pToylsion be made fer the re-
dCmption of the three per cent. certii-
Gates within a reasonable time, and as
compeusatiAg measure for the reduction
in the amount Of currency which would
thus be caused, that authority be given to
grant charters Tor banks in the States
where The banking capital is less than the
share TO which they would be entitled, to
an amount not exceeding S35,0O0,000 in
the aggregate.
There are TWO changes in the organiZa-
tion of the Treasury Department which /
consider important. The first change to
which / refer is the creation of a chief
Of the Treasury, who shall be
to control the system of c0upt-
ing by the several auditors and comptrol-
iers, to whom all appeals shall be made,
upon questions arigiDg in the accounting
Offices of the Treasury. The creation Of
this Office, clothed with the powers indi-
Gated, viii give uniformity 20 the
system, ana trust
it will be in the power of the officer
appointed TO simplify the system and ma
teriallv reduce the expenses of the De-
partmcnt III this particular.
The second change to which call at
tenti0n is, in my opinion, even more i'm
portaut a. present. There are eight di-
visions in The SecretaPy's ghich duties
are connected exclusively with the Gus
toms revenue system. There is no person
except the Secretary Of the Treasury who
is by law authorized to pass finally, or in
any way authoritatively, upon questions
arising in the administration of the Gus
toms revenue laws. AT the present time
the revenue from customs is as large as
the revenue from the excise system-the
number Of men employed and the field of
its operations nearly as great, II IS inl-
possible for the Secretary oftthe Ireasury
TO give the various questions that arise in
the administration Of the system that at
tention which is essential to the service.
Duties of experimenting the collections
Of customs: and revenues are so varied,
delicate and important as TO justify and
REQUIRE the exclusive attention OF the
most competent person syhose services
can be obtained. The experience of the
present year in the administration of the
Internal revenue system and collection of
the excise tax justihes tine opinion that
the establishment OF an office of Commits
sioner of Customs and Revenue, cores
ponding in power and position to that Of
Commissioner of Internal Revenue, and
the appointment of a competent C0mmis-
sioner would render the execution of
the custom and revenue laws much more
efficient and harmonious, while the reve-
nue. would probably be increased to the
amount ofmany million dollars annually,
nor is it probable that the expenses would
be materially greater, excluding interest
accrued and notpaid, and deducung cash
on hand. The debt Of the United states
on the first OF March last was S252, ,5i6, $780,
col, and subject to the same condition it
was S2l5, ,355, ,g73, ,523 OF the first OF the
present month, showing decrease of
XII ao9 594 "a This anparent decrease of