New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1884-04-24


ment. Statesmen and fnanciers saw from
the first that the direct tax clause in the Consttu-
ton would be valuable only in forcing tho use OF
the excise
From 1890 to 1920. the internal taxes. though
most unpopular, yielded to tho Government
the gross sum of $22000,000, and proved
a very valuable resource To the
Rcpuhc in the period of its early financial lrals.
The operoug but effective law of 1862 "one OF the
most searching thorough, comprehensive systems
of Taxation ever devised by any Governments
welded million dollars per day for every secular
dav of the year. "Mr. Webster said that lianll-
ton smote the rock of the National resources, and
abundant streams of revenue gushed forth Bnt
Uomilton's funding bill was not more powerful in
establishing the credit of the young Republic after
the Revolution than was the Internal Revenue
act IN impartng strength to the finances
Of the matured Nation In the throes ana
oconics of civil war. II was the browning glory of
Secretary ChaSes policy, and It's scope ana ooidhcSs
entitle him TO rank with the great nanciers OF the
world
But no taxation that the bOdcst 6nancier could
rronose or tho richest nation bear could have sup
piled with sufficient prOmpmess the enormous sums
needed for the successfu prosecution of the war.
To foreigners il seemed impossible for the Republic
10 put down the Rebellion. As MIR. Blaine says,
''rhe problem to be solved was the utilization OF
our wealth without the aid which comes from the
power to borrow foreign money" OF our own
banks too many distrusted the Nation, and showed
their distrust. II may he added with truth that
the patriotic proposals of others were regarded by
many of the people with apprehension, as tending
to make the very existence of the Government too
tar dependent upon the courage of private capital
in the desperate straits of a great Hence the
ftr.1fr oil lUIIG-
pensabe. Mr.. Blaine saws: {" 1t was admitted to
be a doubtful if not dangerous exercise of power;
but the law of necessity overrides all other laws
and asserts its right to govern All doubts were de-
cided in favor of the Nation" That the act was
not necessary, ia tho Judgment of some sagaclous
financiers Mr.. Blame recognizes; he quotes their
opinion that mad the internal tax been levied first,
and the policy of drawing upon the banks adopted
the issue of lrrcdeemablc paper might have been
postponed and possibly prevented. lie quotes Tree
" and fairly the arguments Of leading opponents
of the act. among whom were Mcssrs Anthony.
Fessenden. King and Conkng, with those
Of it's advocates, but adds his own opinion
that the political and moral influence Of the Legal
Tender act upon the minds of the people cannot
properly be overlooked. Trade revived under In"
stmulns of an expanding circulation. The market
for every product was charging and prices were
far more cheerful duty to tho mass of our people,
the whole community came to regard the prcVa-
lent prosperity rs the outgrowth OF the war
Considera.e men knew that day of reckoning
would come but they believed it would be postponed
until after the war was ended and the Union vic
toriousp 1t cOnld hardly have been pronounced
the highest craftsmanship, if, by rigid adherence to
sound principles the Government had lost the sup
port of the people through the severity OF taxation
at time when a single adverse election might nave
ended the war in dishonor and disunion.
Earlier than "the experienced fnanclers who
assumed to he his special advisers Seere-
tary Chase saw the necessity Of a national
banking system and recommended 1t
TO Congress- The obstacles encountered and the in
huences which moved public opinion to the support
of the measure are very ably stated by Mr.. Blaine
in his twenty chapter, with the argnmensoi
leading men in Congress. He holds that expert
ence has justified the authors of the National bank
ing svstem,' and that "tac advantages of uniform
circulation on a basis Of undouhted strength
aud availability have won almost universal
favor among business men and prudent
thiukcrsr His review of the widely
differing circumstances which lei to the
establishment Of the United States Bank in l|9l'
and ITS revival after the War OF lSIZ, Is Vauaole
because II places in clear light the distinctions III
principle and in practical operation between sucha
bank and the system which we now have. Ear
nestv as he fav0rs the preservation OF the present
system. MI Blaine holds that General jackson was
right in opposing the United states Bank; he saw
that such an institution increasing with the growth
of the country, would surely tend 10 corruption,
and by its unlimited power would interfere with
the Independence of Congress and with the lust
liberty Of the people" But the division and
e al ,,,,Io bo
it's entire freedom from political lavoritism or III
Auencc. and IFS inability to issue bills except upon
honda deposited with and held by the Treasury
Department. guard against the dangers winch
rendered the United States Bank object Of just
apprehension.
SPACE does not permit even a mention OF many in
tcrcstinp topics treated IN Mr.. Blaines work. He
iustIfes the separation Of West Virginia. as neccs-
sary 10 the Union and just to loyal citizens But
he reasons that Virginia deprived Of much terri
tory and taxpayiug power aud thus rendered less
oblc 10 meet its debts deserves some compensation
Until the state shows more disposition TO pay what
it can than it has yet shown, many
viii dissent The strong indignation OK
pressed at the treatment Of General Stone
evinces sense of justice, but moro space Is given
to the subject than its relative Importance in the
Nations history warrants. Mr.. Blame modestly re-
frans from much military criticism, but his con-
trast of the great struggle with other modern wars
is strong and impressive.
The closing chapter on foreign relations manifests
n strong feeling, which must surely be shared by
all loval citizens. The evidence of British and
French unlrieudliness during the CyIl
War. IS arrayed with convincing power.
But Mr.. Blaine disclams any desire to
revive the feelings of burning Indignation which
the events provoked. Old passions are
safe councillors Twenty years have gone by.
England has paid the cost of her mistake. he Re
publc of Mexico has seen the fame aud fortunes of
tbe Emperors who sought her conquest sink sud
denlv-as INTO the pits which they themselves had
dicged." The United states, he holds, "can afford
TO bury all resentmonts," and desires to