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Duke University Libraries
Special report Conf Pam #391
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\lk O W f
SPECIAL REPORT
OF THE SECRETARY OF THE TRP^ASURY ON THE SUBJECT OF THE I^INANCES.
Treasury Department, C. S A.,
Richmond, January 9th. 18G5.
Hon. T. S. BococK, Speaker of the House of Representatives :
Sir :— In the report made to Con.iijrcs^i on the 7th of November, the nrreor of ijidrblednoss wns estimated to i^avr l)ecn $114.000 000, on the 1st of July, 18G1, at the commencement of the lialf year. The close of that ))eriod on the MLst of Decenihor, exhibited, by the sum of the requisitions rcniainino; unsatisfied, that the estimate re- ferred to was too low.
The appropriations made by Congress for the six months, from 1st July to 31st December, 18G4, and the paymentR made in pur- suance thereof, are exhibited in the following table :
Anminta appro- 1 ^"'7"' IL''^"*'^'-''- balance pajnl.lein' ^ . .,
War Departnifiii, :!:.S,l!7,7(t() 00| 6'2,738,fiC7 0(t
Navy '• lu,'i2(»,:;il2 7.")' 370,000 00
Treasury " j_ lir>,31f)^lir) .Mj 5,T1 8,796 82
'29i,fl3i),ll:! 00 9,S44 302 75
:i2ri,129,734 94
827,S(y^90f) 18
1-'!.597,ri45 S2
25,7Ul,9:i6 13
"801^200 :!S7 18
Total appropriations $525,129,784 94
Amount paid 367,250,387 13
Excess $42,120,652 19
Amount appropriated for Trans- Mississippi De- partment, $68,833,363 32 Remitted Treasury notes from June
3d to Nov. 23d, 1864, $20,000,000
" G per cent, non-taxable bonds
from July 21 to Nov. 9, '64, 6,000,000 '* 4 per cent, loan from July
21 to Nov. 9, 1864, 9,000,000
» certificates of indebtedness. 12,000,000 47,000,000 00
Balance to be remitted, $21,833,363 32
The requisitions remaining unsatisfied at the close of the year amount to $183,000,000
Deduct the sum included in the eatimatcs of November 7, as above stated, 1 14,000,000
Excess of indebtedness over the previous estimate, $09,000,000 The several liurcanx of the War Department report an additional indebtedness, not embraced in the re- quisitions, of 184,682,292 Gen. E. Kirby Smith reports the iadebtcdness in the
Traus-Mis&issippi Department at 60,000,000
$313,682,292
To this a^nount must be added the sum of $^^3,000,000, for an ascertained deficiency in tlie nett value of the tax in kind. It was estimated in the report of November 7th, at $145,000,000, and credit was given for this amount in estimating the resources of the approaching' year. It apj)ears that tlie value of $62,000,000, derived licm this source by the Commissary Dcjiartment, constitutes the whfde ueto products of tlie tax; the value of the poriion assigned to the (^uai teriiiaster'a Department, irf absorbed by the expenses JncidniL to ihe collection and transportation of the su])})lios, which are defrayed by that department
The 8iim ( f these new demands and for which additional provi- Hion niusL now be made, is $396,68-2,292. The character of the (lel>t is such that the payment cannot be neglected, or even post- potiod, without danger of seriously embarrassing the operations of ihe \\'ar Dejtartuicnt. it is for supplies obtained in all parts of tiic country, and delivered u])on the credit and good faih of the government The citizens by whom they were furnished, however niimci'ous, arc yet but apart of our jaopulation. They must be in- capable, and wcuhl naturally be unwilling, long to sustain so un- ('i]nal a l)urthen. The ellcct is that of a tax unjustly thrown up- on a few, instcail of being equally shared l)y all; and a sense of ill jury will combine with the pecuniary burth^^n, to discourage the <ielivery of fiatwre supplies. The i»romj)t.c8t measures of relief, therefore, are demanded l)y every consideration of justice and policy ; and J earnestly recommend tiic matter to the immediate consideration of Congress.
J have looked in vain for some source, upon which we might draw for tljcse extraordinary demands, in lieu of taxation ; no other alternative presents iiself.
Dut however burdensome so large an addition to the taxe» may be fouad, it will yet bear with less severity upon the whole body of tax j)ayers, than upon the smaller number, by whom it is now sustained. Regarded in this view, it resolves itself into a question of distributing and equalizing a tax already paid by the people. J jiropose, therefore, that the required sura be chiefly derived from taxation; that the present scheme of taxation be adhered to, with the amendments recommended in my report of November 7th ; and
that 100 per cent, be added to the e^ isting rates ; and in the an- plication thereof to the tax in kind, that it be assessed upon the value of the same, and be paid in treasui-j notes.
The additional revenue that will be raised by this means mav be estimated at $360,000,000, leaving a deticiency to be obtained from other sources, of $36,000,000. This amount may be raised from the ealo of cotton.
The reluctance with which I recommend so great a weio-ht of taxation, is overcome only by the momentous character of the oc- casion that demands it. I feel no little encouragement, however trom the reflection, that great as these demands are, they are at
l^»AAnnnni^'^.'''°'^^'°'^^^'^ ''-^ ^^^ ^^^"^ «^ ^"^ pPOduCtionS. If
1720,000.000 of taxes are to be collected from the people it is be- cause $720,000,000 are to be paid to them for supplies. ' The ex- penditures denote the sum of the productions applied to the public defence; taxation is the machinery liy which the general contribu- tion is distributed and equalized.
Nor should the depreciation of the currency be lost sight of in esitmatmg the weight of the burthen. The sum stated is barclv eciual to $20,000,000 in a sound currency. If we had the option of another choice, it seems doubtful if we should forego the advantage of a mode of payment so cheap. Nothing is so low in value, or so easy of acquisition, as the medium in which the tax is demanded and not to defray the expenditures in the present currency, I)ut tund them for payment in specie at a future day, if that were prac- ticable, would be to disregard the obvious su<rgestions of nru- deace. " '
I venture, too, with great respect, to suggest, that the coura'^e and resolution by which a present sacrifice is made, to ward of^'a distant, but formidable danger, is an exercise of wisdom as well as of virtue. The occasion seems to demand such a sacrifice at our hands ; and having an abiding confidence in the righteousness of our cause, and in the intelligence and virtue of our people, I fearlessly recommend the measures demanded for the defence of our honor and the preservation of our rights. '
While these measures hold out the promise of an adequate amount of revenue for the eventual extinguishment of the arrcar of debt and for the payment of the current expenditures, they afford no re- lief for our present necessities. Their early adoption, however will inspire confidence in the resources of the trovernment, and en- courage temporary loans in advance of the revenue.
To promote the early liquidation of the arrcar of debt, I recom- mend that the certificates of indeljtcdness, authorized by the Act of 17 th February. 1864, be made receivable in payment of the 100 per cent, additional tax recommended in this report, and that they be taken in payment without interest, but at tlie rates of $10.", for $100.
1 would respectfully urge, too, the passage of the l)ill for the
angDientation of the export ami import diitie?, to encourage and promote the sale of the live linndi-ed million loan.
A" an additional measure for tlie convenience of the Treasury and < f tlie |»ul>lic, I recommend that antliori'yhe fri^en to this l^e- partinent to e>^taldish an ollicc of Deposit. i!i connection with t^e Treiieiny. Throntrh its intrnmcntality. the fame sum maj be made repeatedly to perform the fuiiction of payment, and both by the performance of this manifold duty, and by its withdrawal from the channels of speculation, to contribute in arresting the progress of depreciation.
Thi.« office should be kept separate from the Trea?ury proper: it should receive on deposit the current fur.ds of those having rela- tions and transactions with the government, and thot^e of the public generally, and pay the same out upon the che<"ks of depositor?. And it should be authorized to deposit in the Treasury, returna- ble at call, not more than two-thirds of the deposits.
G- A. THEN no LM,
Secretary of the Treasury.
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