S _ '^. -^ '-^••■ 
 
 SENATE, Feb. 28, 1865.— Ordered to be printed. 
 [By Mr. Oldham.] 
 
 REPORT 
 
 Of^he Minority of the Committee on Finance i>n *hf Bill {H. R. 379) 
 to !evij additional Taxes for the year 1 S65, for the Support of the 
 Government. 
 
 The undersigned, from the Committee on Finance, to whom was 
 referred the bill to levy additional taxes for the year eighteen hun- 
 dred and sixty-five, for the support of the government, begs leave to 
 
 Bubinit the following 
 
 Minority Report: 
 
 Otir financial history and present condition of the public credit 
 prove conclusively that our system was constructed upon a founda- 
 tion radically defective and erroneous — and, if so, it is clear that \\^ 
 Ci\\\ never extricate ouixelves from our difficulties witliout a funda* 
 nnural change. If the causes which have involved us in our pn'seut 
 embarrassments are not eradicated, they will contimie to sink us 
 deeper and deeper in the gulf of irretrievable bankruptcy. 
 
 The present con«lition of the public credit is too painfully palpnbli^ 
 to \u'vy\ descripticui, and our legis'atuui is too fresh in the UM'Uiory to 
 r«'i|iiire its history in ordrr to point luit the causes which liave pro- 
 du«-ed existing results Believing that they have been caused by a 
 d srcganl <»f fundamental priiu^i[)le8, that cannot be vinlatrd with im- 
 punity, I conceive that nur condititui is not bcvond the hope of re- 
 medy, if we chang*' our svsf<ni so as to conlbrm to those principles. 
 
 Shut oiit as we are from infj-rcourse with the worhl, we are coui- 
 peih'd to ri'ly tipon our own internal resources to furni>h the means 
 to «iiny (Ml the war in which w« are engaged. For this purpose, it 
 caMfu>t be denu-d but the couiitrv possesses ;ill the resmures m*ces- 
 8.-i:*v to maintain the struggle ni<lelinitely, if vv sely an«l juiliciously 
 a^hniiiistered. ^ 
 
 'I'o make the resources of the rountry available, but two measures 
 CJ'JJ be adtipted: I, credit; and 2, taxation. The credit of the go- 
 voin.nent can b«' use-l ifi various fnruis; but tluueare onlv two modes 
 in which it can be dout* to ;iny extent, to wit: I, in tlie form of troa- 
 8ti y notes; n\\i\ J, in bonds bea iiig interest^ 
 
 <'redit c:mn<»t be reliiuJ upon alime as a u.eaus to (u^ni^h the sup-" 
 
3 
 
 ]*Vu's i('(|niip(l lov uiir inilitiiry operations. It' iisod in :lie form of 
 Tt'asMiv Motrs. tlios»' iKjfet* n«M'»'8S}irilv I'litrr into rirciilatioii, and con- 
 ..(itntr, within a rfifain limit, a ]»;iit ol tlu' «'urnii( y ot the country; 
 j»n«l \vh«*ii the vohiine swells beyond that liniii. thev ln'gin to depre- 
 ••iriti", and drive out of eiienlafioti i;old and silv«'r and hank bills, and 
 'Iris bei-onn* the measure or standitnl of values. The depreciation is 
 Midieated bv the relative ^alne of the notes to specie, or by the en- 
 h.inred piiie of the artitdes of snbsistenee. It wa« a part of our 
 Hnanrial scheme at the beirinniiiir to irive tlic lield of eirenlation to 
 conleih-rate note^ as tai as po-sible, and the e<»nse(|n«'nee l)as been 
 tiiat tliev have driven speeii' and bunk notes out of ciri'ulation ; liave 
 become the exclusive medium of exchanjre, or measure of vabies, atid 
 have <rraduallv depreciated, in comparison with uold, at some p(»int8 
 in the countrv, as low as s('V«'ntv for one — and in maiiv places articles 
 of subsistence and tin; means ot living have advant-ed in price to 
 almost a corresponding extent. 
 
 Governnient bonds p.r se are «'(|ually unreliable as treasury notes. 
 We are stni«r^'linir tor existence, and aie not recognized aniouust the 
 families (»r nations of the earth. It the bankers and capitalists of 
 tlie world were accessible to us, they would not invest in our bonds 
 but at the most ruinou'* rates of discmint. IJut we are cut otf troni 
 the bahince of the wenld by the l)lockade ot onr |»orts, and we are 
 thcndiv th'prived ol the use ol our staple products to sustain the 
 value ot (»ur bonds in the Kuropean moirey marker. But were the 
 world open to us, <tur bonds wouM be of l)ur jirtle value, compara- 
 tively sp(!aking. \Vr have expended as mm-li money, or rather con- 
 tracted as large a di bt (hiring this war as (hd Orear Britain <luring 
 ttif wars of ovt'f twcntv yeais, growing out of the French rt^volution; 
 yet that government, the ri<;liest in the woild. and a thousand years 
 old sold her b(m'ls tor fd'ty-tnie for one hnndied. Then the only 
 marker tor our bonds is at home; and h«re we have not moneyed 
 Capital enough, ex<dusiv<' (♦( treasury notes, to cany on our govern- 
 m«nt, with its innnense military operations, for more than forty days. 
 Were we to stdl tin* bonds in the market as we have done, for trea- 
 «inv notes, they wouhl i>nih depreciate pari passu, until rlie public 
 credit shouhl be utterly destroyed. This is evidenced by the real 
 specie value of the six jier cfUt. biunls of the five hundred midion 
 loan, whii h, as stated by the Secretary «)f tjje Treasury, at the time of 
 bis last reporr, "were sold at the rate of one hundred dollars in bonds 
 for six dollars in specie." and would not now bring that value. 
 
 Taxation alone is ecpialiy unreliable as credit. Our expt'iiditnres 
 are over two hundred mdlions |>er annum, specie value; which ail 
 adndt is beyond the ability of our peoph- lo |»ay — that it amounis 
 as r.i|>idly as it is expended. 
 
 Xotwitiistaiiding tin; above [)alpable and indisputable facts and 
 projKisiiioiis I believe that a limincial syst m can be devised, judi- 
 ciously coMdiining the credit of the government, in the form of both 
 treasury notes and Ixnids, with taxation, which will enalde us to 
 niaititain our tredit and carry on the op«'rations of the government 
 SUCceNSi'dly. ' 
 
3 
 
 The two bills which I herewith propose are presented as a p;irt 
 of such a plan or system. I do not think it can be controvert- <^ 
 that exptM'ieiice has proven that the only hiisiness form that can hv 
 given to the credit of the ijovcrmncnt, that will make it elective in 
 purchasing onr necessary supplies, is that <»f rrt>asury notes, jind tluiT 
 it can be used in that form for a much Jarsrer jniiount, without dt']»re- 
 ciation, than in any other, but that there is a liuiit beyond wliich it 
 cannot be extended in that shape. Assu'uiiug as a iiict, which seems 
 to be acknowledged, that two hiuidred or two hundred and fifty uiil- 
 lions is the limir heyond which treasury u<»tes camiot he kept at [);ir, 
 one of the bills proposed fixes the latter sum as the maxinmui to h*.' 
 allowed tu remain outstanding or in circulation at any time. To 
 enable the Secretary to control the amount of circulation, and to 
 keep it within the limit prescribed, the hills provide that in antici- 
 pation of disbursements from the Treasury, niuler appropriations 
 made by Congress, the holders of all treasury notes hereafter issued 
 shall, v^'ithin such time as the Secretary shall designate, but not Icsh 
 than sixty days, deposit sncii notes as shall be designated, with some 
 depositary, and exchange the same for bonds of the characl<M- of the 
 five hundred milliou loan, and that such notes shall he received in 
 said exchange at their market value in specie. It is not proposed lo 
 subject the present outstanding circidation to this n)easure, but leave 
 it to be al)sorbed by the taxes of the presiMit yetir. 
 
 Now what v.vould be the ]iractical etftM't of this measui't!? t. It 
 would place it completely and [)erfectly in the power of the Secre- 
 tary of the TreasiMT to confine the circulation of treasury noten 
 within a prescribed limit, whi(!h we have never been able to do here- 
 tofore, 2. It withdraws the temjttation of interest from every per- 
 son to depreciate the currency, as the loss will inevitably fall upon 
 the holder, and will not be made good by the government. :3. fi 
 will innnediately establish specie as the standiird or measure of 
 values in all business transactions. 4. It will [»reveut further de- 
 preciation of the currency, and tend to its rest(n-ation to par value. 
 6. It will prevent the accunnilation of a public debt beyond the 
 actual specie value of the supplies obtained by the government. 
 The first consequ<'nce is self-evident; the second is etpndly so; and 
 in addition, the iiolder is made interested to appreciate the <;urrein;v, 
 if it is below par, and to keep it up, if it is so. The third conse- 
 quence w<Mild necessarily result. Holders of supjdics wcnihi liave 
 no interest in exa<ting any thing els«^ than the market value in 
 specie for their commodities, knowing thai would be the aniotmr tlie\' 
 Would eventually reali/.e, whatever price ilmt might be given, ri suit- 
 ing from the depreciation of tin- currency. The fourth would result 
 from the same reasons of the secotnl. If the ludders of one hnndied 
 millions of <Mitstanding cir<'ulation shotild be uoiihed that within >ixiv 
 days they would he requiri'd to fund the same, at its market value in 
 specie, there wouhl l>e that amount of inferesi C(»nd»in»M|, if depre- 
 ciated, to elevate it to par value belbn- the day for fuiniing, and the 
 like iurerest t<» nniintaiii the balance outstanding at par. It will not 
 be controverted that the lilth consequence wouhl result ; lor vvluitp 
 
 
 Pa 
 
 1 < 
 
ever price may be drmjmdefl by the holder of supplies, as the market 
 value ill confederate currency, tlie measure proposed reduces it to 
 the aj'tual specie value ; and therefore the debt contracted would be 
 a dthr based upon 8p«'cie value. 
 
 With what justice cam a man deiiiaiid one price of the government 
 lor an article, because of the depreciation of the evidence of indebt- 
 rdut'ss which he receives tor it, and ihm demand the face value of 
 the siH'urity in specie? What rijzht has the government to promise 
 a man fifty times the value of an article, and pledge the entire pro- 
 prrty of the country for its paym«Mit? 
 
 The measure proposnl will prcttett tln' holder of the outstanding 
 circulation. If two hundred and tilfy millions are outsraiidimr, as- 
 suming that to be the limit ot par value, and the necessities of the 
 government should require the issue ot one hundred and twenty-tive 
 millions more, it would optMati- as a tax upon the ontstan lin^ two 
 hundred and fifty millions, of thirty-three aiHl ^i third per cent., and 
 a loss to the government of one-tliini ol ilie hundred and twenty-live 
 millions added to the circulation. It will be admitted, that after a 
 circulation reaches the maximum limit of par value, an increase of 
 quantity will not add to or increas*' tip- airizreiratt? value: therefore, 
 the three hundred and seveni\-live millioiis will be worth no more 
 than the two hundred and fifty millions were worth. The purchasing 
 ca[»acity would be the same. In fact, it would not be worth as 
 much; for experience has proven that altera currency has passed the 
 maximum limit of par valm;, the depreciiition is more rajtid than the 
 increase of volume, so that when the latter attains a certain magni- 
 tude, the whole becomes totally worthless. But assuming them to 
 be e(pial, by recpiiring one hundretl and twenty-five millions to be 
 funded, the liold»;rs would be saved a tax, r»'sulting from depreciation, 
 of eighty-three and two-third millions. The government would save 
 forty-one aruj a third millions, which would result from the same 
 cause; 'and the people would be protected from the evils of a depre- 
 ciate<l currency. 
 
 Without an efficient system of taxation creating a demand by all 
 classes of tax payers for money, the above measure won hi be inetlec- 
 tual tor much good: therefore, the tax bill oHtMed is proposed as a 
 part of the plan or systc'ui. The only distinguishing fi-ature of that 
 bill is, that it embodies the same principle as the funding bill, by 
 levying a tax in 8[iecie value, payable in treasury notes, certificated 
 of indebtedness, and quartermasters' and conunissai ies' accounts not 
 paid for want of funds, at their market value in specie, to be ascer- 
 tained and established in the mode therein prescribed. 
 
 The following may be presented as a part of the advantages re- 
 sulting from this mode of taxation, to wit: 
 
 I. It equalizes the real amount of taxes paid throughout the 
 country, and n|u)n all classes of persons. In many portions of the 
 Confedi'racy, certain staple articles of subsistence are not worth more 
 than two or three times as much as the same articles ae worth at 
 other places, when the price paid is in sfiecie, but when paid in 
 treasury notes, the price is in many instances titteen or twenty times 
 
as much. In some States and localities treasury notes, as compared 
 with specie, are worth two or three times as much as in others. 
 These facts prove that treasury notes are of much greater value in 
 some places than in others, and that therefore a tax for a certain per 
 centum, payable in currency, without regard to value, would, to the 
 extent of the difference of value in different localities, operate un- 
 equally upon tax payers in the respective localities. The greatest 
 depreciation exists in this capital, and in the cities and towns where 
 speculation is hiajhest; and the least, in the remote agricultural dis- 
 tricts. The profits of the speculator are enhanced by this disparity, 
 enabling him to ])iircliast' with the same currency at one value, and 
 sell for it at another: therefore, it is to his pecuniary interest to sus- 
 tain it at the point of purchase, and depreciate it at that of sale. 
 Therefore, a tax for a certain per centum, without regard to real 
 value, would operate unequally upon certain districts and localities, 
 and upon the tax payers residing in them, to the extent of the 
 inequality ot depreciation in the respective localities. The ad- 
 vantages would be in favor of those who have produced the- highest 
 degree of depreciation. l>ut if a fixed and certain specie value is 
 exacted, all pay the same value, regardless of nominal amount. 
 
 2. It will equalize the taxes upon individuals in another respect. 
 A tax bill sufficiently heavy to produce a decided improvement in the 
 value of a depreciated currency, must necessarily cause a heavy de- 
 mand upon the part of the people for the currency in which the taxes 
 are to be paid, and according to the pressure ot the demand, appre- 
 ciation will result. The great mass of tax payers are not thoughtful 
 and provident, but wanting in foresight and precaution. If the tax 
 is levied for a certain per centum in currency, without regard to 
 value, those who imnu'diately provide thenjselves with the amount 
 they are required to pay, while the currency is at the lowest point of 
 depreciation, will pay a much smaller tax in point of value than 
 tliose who do not, or cannot procure the funds to pay theirs, until 
 after the appreciation takes {>lace, produced by the taxes themselves. 
 To illustrate the proposition more fully and clearly, say that a tax 
 of ten per centum is imposed, as by the House bill, payable in con- 
 federate treasuiy notes, and that treasury notes are worth fifty for 
 one in specie — in that case, those who have the currency on hand, 
 or obtain it while at the lowest rate of discount, will pay their ten 
 per Cfutum of taxes with twenty cents, one-fifth of one per cent., 
 real or specif, on the hundred liollars If the taxes should enhance 
 the value of treasury notes to ten lor one, those who pay while at 
 that value will pay one per cent., or five times as much in value as 
 the former: ami if eventually treasury notes should come up to par, 
 persons then paying would pay ten per cent, actual value, or ten 
 times as much value as the latter, and fifty times as much as the 
 former. A tax bill, levying taxes for a certain amount of currency, 
 without regard to value, sufficiently high to bring the currency up 
 to par value, or near to it, would bear so lightly upon the man of 
 money, the speculator, and the man of precaution, as scarcely to be 
 felt, but would come down with such crushing weight upon the 
 
"balance of the comnnmify as to l>niikrnpt half the conntn-. No such 
 consequences could {(o.ssibiy result troui u tax for a specific value, 
 payable in treasury notes, at their s|ieci«* value in tlie market. All 
 would pay a like value, althoujili <litlerent amounts, dependinji upon 
 the rate of the depreciation at the time of payment. The man who 
 should pay his taxes while the ciirrencv was at a discount of fifty for 
 one, would iiftually pay no vuovo than he who should pay his when at 
 par value. The value paid wouM be pn'cisely the same, flu* diflerence 
 being nominal in amount only. In addition to the equality of taxa- 
 tion resulting frjotn this systeni — no disastrous consequences would 
 be ]>roduced ; for as the currency dejireciiited, the amount of the 
 taxes wOuld enlarge ; biit as it ap[ueciated, the amount would con- 
 tract — the tax payer being as able in the one case as the other to 
 obtain the value required of him. By this means, the pressure that 
 will necessarily result from any tax bill high erjouirh to produce a 
 decided improvement upon our currency, will be met and controlled 
 without disastrous consequences being intlicted upon the country. 
 
 3. Another beneficial C(msequence would result. When the taxes 
 are levied for amount and not for value, every tax paver is int(M*ested, 
 to the extent of the amount demanded of him, to depreciate the cur- 
 rency. It is hift interest to obtain the amount for the least possible 
 value; but if a specific value is demanded, then his interest is re- 
 versed. It is then his interest to erdiance the value and i?educe the 
 amount, and to the extent he can dt» so, realizes a profit. 
 
 4. The mode provided for ascertaining, at fixed periods, and declar- 
 ing the market value of treasury notes in specie, as the value at which 
 they will be received in ]>ayinent of taxes, (U* be funded, will neces- 
 sarily ecpialize the value at all jjoints and places in a very short time. 
 This would at once stop all speculation in articles of subsistence and 
 necessaries of life, so far as it is exerted by reason of a depreciated 
 ctirrency, at diflerent rates in difT'-rent localities. 
 
 5. When a fixed jier centum of taxes is demanded, the soldier and 
 the salaried otlicer, who receive the currency from the Treasury at 
 par, in payment of their services, are required to pay the same amount 
 of taxes as the man who obtains it at a disc(umt of fifty for one. 
 Under a system of taxation for value, these classes can be protected, 
 by allowing them to pay their taxes in the currency at the same 
 value they received it from the Treasury. The bill pro]»osed contains 
 this provision; but when salaries have been increased, the original 
 salary is taken as the specie standard. 
 
 (). Under such a combination of funding and taxation at specie 
 value in ihe market, specie would immedialj'lv become the fixed and 
 st.-ible nn'iisure of value, and treasury notes would cease to be such. 
 Specie would cease to be a marketable connnodity, and treasury notes 
 would become such. Specie would no longer be sent to auctions, 
 and bid for by a condiination of speculators, with the view of decry- 
 ing the value of treasury notes. F^VHry motive to temptation and 
 interest, at present existing to depi-eciate the curr<'ncy, would be re- 
 moved or reversed, and made to co-operate with the only legitimate 
 regulators — supply and demand. 
 
Under the operation of the two bills herewith presented, the cur- 
 rency could never, under any circumstances, sink lower than nine to 
 one in comparison with specie, after the period 8})ecified for the col- 
 lection of the taxes. One per cent, upon the taxable property of the 
 Confederate States would yield about thirty millions of dollars. If 
 that sum should be collected irom u circulation of two hundred and 
 fifty millions of treasury notes at specie value, the entire circulation 
 at nine for one would not pay it, but would leave over two millions 
 two hundred thousand dollars to be paid in specie, or its equivalent. 
 But as long as the demand for taxes continued to operate upon the 
 currency, and the quantiry continued to diminish, its value would 
 continue to rise in the hands of the holders, and by attaining a higher 
 value than seven forone, wouM discharge the taxes before exhausting 
 the circulation. 
 
 When, however, it is borne in mind that the amount of currency 
 demanded by the business wants of the country, co-operating with 
 that produced by taxation, supported by the individmil interests of 
 holdeis of treasuiy notes, to whose benefit their eidianced value would 
 enure, and to whose injury their drpreciation would result, it may l)e 
 confidently asserted that two hundred and fifty millions of dollars 
 could bf kept at or near par value, without reference to the amount 
 of the public debt. 
 
 The distinguishing feature of this mode of taxation consists in this, 
 tliar the largrr tlu; amount of the circulati«)n in which it is to be 
 paid, the more a given value will absorb and retire, while a fixed per 
 ceiituu) tor amount will only ahs<»rb a given quantity, regardless of 
 the amount or value of the circulatiou. 
 
 The legitimate regulat rs of a currency, as well as of all other 
 marketable ccunmodities, are demand and supplv ; but their influence 
 is often sustaiiu'd, or counteracted and modified by extrinsic and fac- 
 titious circumstances — by the dictat* s of interest and the comi>iiia- 
 tion of speculators. It is the interest of every speculator uyion tlie 
 necessaries of life and the products of the country, to buy rhea[> and 
 sell high ; an<l il he deals in currency, to j»ay it out at the highest 
 rate of vabu', and receive it at the lowest. If he wishes to invest in 
 b(tndsat a fixed juice. as the five hundred millitui loan, at out; hundred 
 and thirty-five dollars for one hundred in bonds, it is his interest to 
 depnciate the value of the notes in order to purchase them cheap. 
 
 l>ut when every temptation of interest to depreciate the currency 
 is reujoved, the legitimate regulators — demand and supply — will estab- 
 lish its valuta and when it is made the interest of individuals o 
 8U|»port and sustain if, it may In; «'le\;ite(l uiuch higtier than it would 
 b« under he, influence of supply and <lemand mendy. 
 
 Relieving that the depreciation (»f tn'asury notes has maiidv re- 
 sulted from a rciluhdant circulation, loupled with the interest ot indi- 
 viduals, tax pavers and speculators to depreciate them, the. measures 
 proposed are tie>igiied to remove tjiose causes, by providing a mode 
 of keeping tUv. circulation within •■ roper liinils, and reverse tht^ inte- 
 rests of every iudividual from antajroiiism to that of support. 
 
 The scheme here proposed would be vastly more efficient in reliev- 
 
8 
 
 ing the Trea8ury from its embarrassments than that proposed by the 
 bill of the House or that of the committee. The Treasury has nearly 
 reached the limit allowed by law for the issue of treasury notes ; and 
 it may be pertinently asked how is it contemplated to pay the army, 
 carry on military operations, and defray the expenses of the govern- 
 ment after that limit shall have been reached. If the law should be 
 amended so as to allow a larger issue, the notes wonld become value- 
 less. Bonds cannot be sold for more than three dollars in specie for 
 one hundred dollars. The taxes will not be collectable until after 
 the first day of July, and thereafter considerable time must elapse 
 before the Treasury will begin to realize funds from taxation. 
 
 The scheme proposed authorizes the issue of two hundred and 
 fifty millions upon a different basis than that heretofore existing; and 
 this sum would carry on the government until the first day oi July. 
 Alter that time the different etlects in reducing the currency will be 
 remarkable. The taxable property of the Confederacy being three 
 thousand millions, a rax of ten per cent, ad valorem would give three 
 hundred millions; and of five.* one-half that amount. 
 
 Let us suppose, that during the month of July the taxes on one- 
 iixth of the taxable property of the country should be paid — that is, 
 on five hundred millions. On that amount the House bill, at ten per 
 cent., would ra,\se Ji/fy milli nis; the connnitree bill, iweniy-Jive md/ionxf 
 and the bill herewith |»roposed, fwn humind ami Jifiy miUlom — assum- 
 ing fifty for one to be the rate of depreciation. This rapid curtail- 
 ment of the circulation during the first month, would not onl)' re- 
 lieve the Treasury of its overissue, but in connection with the demand 
 on the people for the taxes on the remainini; five-sixihs of taxable 
 property, would ra;>idly and almost instanraneously operate so as to 
 produce a great rist- in the value of treasury notes. This immense 
 Buui would be collected of those best able to pay it, and could be 
 borne without difficulty. A fixed tax per centum in amount would 
 yi< Id precisely the same sum on the last live hundred millions as on 
 the first — that is, fifrv millions, although the latter, by reason of tlie 
 a|t|Mi'ciation, might be of fifty times the value of tin- ibrmer, wiule 
 a tax for <me per cent, value, the hrst hve hundred millions vvonlil 
 give fifry times more in /mm in ■ I (imnum than rlie last five liuinlrid 
 niiliiotis would yield, while the cUur of both would be preeise v 
 equal — that is. five millions of dollars. Tiie pressure would ther,*- 
 foie li.' e(pjal at every stage of collection. 
 
 Tfie billof the committee, which will raise but one linndnMl jiid 
 fifty mdiions, would produce no sensihl rffeci ujxri the value wf 
 treasmy iiot(!s as a curieney, while thai of ihi- House would etn i 
 and hiinkrupt haf the conmry, suid wnuid produce but a tempo ;!i\' 
 improvement. Tlie rejssu.-s of i^ t; Treasury, of not»'s far beyon 1 «•! j 
 maximum limit of par value, cor, b.urd vvnh ti<e spirit of speeu:,'.i ii 
 inherent in the existitig system, w«Hild t,iiis«' tli. irva.iie todrop<.> »• i 
 to the present r;;t«- of diM-ount as soon jis th > ]>r(Ssureof ta\i ? i 
 fihuuid r»e remt>ve(l — and rw* !V.» iiioatlis fienc. we. will be fouu<? iii 
 
 .* J'lu' CdiiiuiiUvc ilii.i.i'i.l itn> j^i-j c II M»i ••...• ./;':. ■■ ii: . ;. i-i '.' i- report was w..». • 
 
the same, or a worse condition than at present. Constant fliirtna- 
 tion from one extreme to the other will inevitably result, with con- 
 sequent demoralization and disaster that cannot be depicted. 
 
 It is objected that the people will not take treasury notes under 
 the scheme proposed. Why not?* The same cause will exist that 
 induces them to be taketi wh(Mi worth oidy two cents on the dollar. 
 The soldier and the salaried officer will have to take them — and if 
 8ui>j>Ii('s cannot be purchased, they will be obtained, as at present, 
 by impressment. Taxation will compel every man to take enough 
 to pay his taxes. If they depreciate, the taxes will absorb them. 
 
 l( the tax in kind is efficiently collected, safely kept, and applied 
 to the use of the army; if a strict inspection into the acts and ac- 
 counts of purchasiiijT amuits, quartermasters and commissaries, shall 
 be instituted, etitbrcing economy and H<lelity, the undi-rsigned cannot 
 see the necessity of an expenditure of over two hundred millions per 
 ammm in treasury notes of specie value. In conseijuence of the 
 rapid reduction of the anionnt of treasury notes outstanding by tax- 
 ation, because of their present great depreciation, it is not prol);ibie 
 that any notes would be required to be funded during the present 
 year. 
 
 I>iit let it be admitted that such woidd not be the case, would not 
 the holder prefer to fund the notes in a b(Mid, which would e\entually 
 be |)aid i;» specie, than to hold them until, *>y depreciation, they 
 should become wholly worthless in his hat)ds. It woidd only be 
 those desirous of speculation that would object to funding — but under 
 the scheme, proposed, reckless s))eculation would be suppressed, and 
 that which is legitimate alone would continue. 
 
 Once brought up to ])ar, they would remain at that, and would be 
 so iuiided in bonds, the interest on wlii«'h would be paid in par fimds, 
 and the patriotic holder would feel that it was an investment not for 
 proht, but for the defence of his country. 
 
 Ou!" debt is n«tw about as large as the countr}' is able to I ear. It 
 thiMefore becomes the interest of the holders of that debt as well its 
 those who are looked to lor its p.iyuuNit, to see that it does tiot grow 
 any laiger than absolutely necessary — and especially that the future 
 increnst; shall not be at a rate of lioui ten to fiity times the value re- 
 ceivi'il — shocking the si'use of justice and right — prodiu'ing n-pmlia- 
 tion ot the who e debt, for the reason of its ini(|iiit(»ns injustice, or 
 ciiisliing it out, by reason of its own «»verwhelmuig weight, and (he 
 total inability m1 th<' people to p;iy it. 
 
 Il;id not the tlieory here pr«»j)oscd been verified, atid proved p acti- 
 cal'v efficient, undei- cncum -tam-es alu.ost precisely similar to ili>se 
 U!i 1 r which we are at present surrounded, lur ot a mmdi smaller 
 niai-miude, the umhrsigned won d not n'comme.id it witli the conh- 
 dciice which he does. He do< s not claim to have originated it. but 
 bt iim awan? of its success in oiu- inst.inct', he ventur. s to propose it 
 as a remedy for the tiiuincial ilis with which we are afflicti'd. Tim 
 trciisuvy notes issueil by the Kcpublicof T« xas during her revolution 
 d» prec,iated, by reasmi of rediiiiUaucy and other <-anses, so as to be- 
 come almost valueh ss. In the year IHI'2 her Congress parsed an act 
 2 . 
 
10 
 
 providing for the issue of a new currency, to he Ctilled "exchequear 
 notes," limiting th<! amount to be ifisut'd, and [noviding that tliey 
 should be receivable in payment of impost duties and taxes. Con- 
 gress adjourned, and immrdiately ihercalit-r "military reverses" set 
 in against the young Republic. -A Mfxican army invaded the Re- 
 public, and captured Sau Antonio. The president removed the seat 
 of government from Austin to Houston, one hunrhed and seventy 
 miles east. Consternation seized upon large masses of the people. 
 Under these circumstances, importers and tax payers lost confidence 
 in the safety of the country, and ex<'he(|uer notes depreciated to 
 thirty-three cents in the dollar. Congress was convened, and passed 
 but one resolution upon the subject of the currency, and that >imply 
 declared that they should "be receivabh; tor impost duties an<l taxes 
 at their market specie value." The efiict of the measure was electri- 
 cal. Confidence in the currency immediately revived; exchequer 
 notes lapidly appreciated ; came up to par, and maintained that 
 standard until the annexation of" Texas to tlie United Htates in 1S46. 
 That decided effect was produced by simply making the interest of 
 importers and tax payers sustain the credit of the notes instead of 
 depreciating them. 
 
 Being long convinced that our financial system is radically and in- 
 herently defeciive, and well sitti.-lied as to the causes that must 
 eventually, and have finally produced its failure, I have ventured to 
 propose and advoi'ate the changes above set fbith. Whether the plan 
 is calculated to acromplish all thut the undersigned believes it will, 
 is not the question, but whethtu- it is an improvement upon the ex- 
 isting system. It cannot be worse, for that has failed. 
 
 W. S. OLDHAM. 
 
11 
 
 A BILL 
 
 To levy additional Taxes for th- Common Defence and Support of the 
 
 Government. 
 
 1 Section 1. The Congress of the Confederate States of Aine- 
 
 2 rica do enact, That from and after the passage of this act there 
 
 3 shall be levied upon the subjects of taxation herein after men- 
 
 4 tioned, and collected from every person, copartnership or corpo- 
 
 5 ration liable therefor, taxes as follows, to wit : 
 
 6 I. Upon the value of all property, real, personal and mixed, 
 
 7 of every kind and description, not herein after exempted, or 
 
 8 taxed at a different rate, one per cent. The value of such pro- 
 
 9 perty shall be assessed on the basis of the market value of the 
 
 10 same or similar property in the neighborhood where assessed, in 
 
 11 the year eighteen hundred and sixty. 
 
 12 The taxes above levied shall be paid in Confederate States 
 
 13 treasury notes, certificates of indebtedness, or accounts for pro- 
 
 14 perty purchased or impressed for or on account of the govern- 
 
 15 ment, duly certified to, as valid and just, by a bonded quarter- 
 
 16 master or commissary, and that the same has not been paid by 
 
 17 him for want of funds, but said treasury notes, certificates of 
 
 18 indebtedness, and accounts certified as aforesaid, siiall be received 
 
 19 by the collectors in the payment of the tax of one per cent, afore- 
 
19 
 
 20 Raid, at their iihirket value in specie, to be ascertained, assessed 
 
 21 and declared from time to time as jiereiu after provided. 
 
 22 II. Upon the amount of all gold and silver coin, gold dust, 
 
 23 gold and silver bullion, whether held by banks, or other corpo- 
 
 24 rations or individuals, and upon all moneys held abroad, and bills 
 
 25 of exchange drawn on foreign countries, a tax of one per cent. : 
 20 which may be paid in kind, or in the evidences of indebtedness 
 
 27 above specified, at the market value of the same in specie as 
 
 28 aforesaid. The tax upon money abroad shall be assessed and 
 
 29 collected according to the specie value thereof at the place whore 
 
 30 the tax is paid. 
 
 31 III. Upon the amount of all solvent credits, one per cent.: 
 
 32 to be assessed upon the specie value thereof at the time the 
 
 33 assessment is njade, to be paid in the evidences of indebtedness, 
 
 34 at their market specie value as aforesaid ; and upon bank bills 
 
 35 and other currency not employed in a registered business, the 
 30 income derived from which is taxed, one per cent., which shall 
 37 be paid in kind, or in the evidences of indebtedness, .at their 
 3S value as aforesaid. 
 
 1 Sec. 2. That all the property and assets of corporations, asso- 
 
 2 ciations and joint stock companies of every description, whether 
 
 3 incorporated or not, shall be assessed and taxed in the sameman- 
 
 4 ner and to the same extent as the property and assets of indi- 
 6 viduals ; the tax on such property and assets to be assessed 
 6 against and paid by such corporation, association and joint stock 
 
13 
 
 7 company : Provided, That no bank or banking company shall 
 
 5 be liable to pay tax upon deposits of money, to the credit of and 
 9 subject to the checks of others : And provided also. That the 
 
 10 stock or shares representing property or assets in corporations, 
 
 11 associations or joint stock companies, shall not be assessed and 
 
 12 taxed as property under this act, but the dividends derived there- 
 
 13 from shall be liable to the income tax as provided by existing 
 
 14 laws. 
 
 1 Sec. 3. The following exemptions trom taxation under this 
 
 2 act shall be allowed, to wit : 
 
 3 The property, income and moneys of hospitals, asylun'is, 
 
 4 churches, schools, colleges and charitable institutions. 
 
 6 All property within the enemy's lines, shall be exempt so 
 G long as it shall remain within such lines, unless income be de- 
 
 7 rived from such property, and in that event the income so de- 
 
 8 rived shall be taxed. 
 
 9 The exemptions enumerated in paragraphs one, two and 
 
 10 three of section live of the act entitled "an act to levy addi- 
 
 11 tional taxes for the common defence and support of the govorn- 
 
 12 ment," approved 17th February 18()4, are hereby re-enacted: 
 
 13 Wearing apparel, household furniture, when; the value thereof 
 
 14 does not exceed one thousand dollars ; goods manufactured by 
 
 15 any person for the use and consumption of his family; products 
 
 16 of gardens, poultry and fruit raised for the family of the pro- 
 
 17 ducer, and not for sale, and corn, bacon ayd other agricultural 
 
14 
 
 18 products, which were produced in the year 1S64, and in the 
 
 19 possession of the producer on the day of the passage of this act, 
 
 20 and necessary for the support of himself and family, including 
 
 21 his slaves, during the present year, from or on which taxes in 
 
 22 kind have been deducted and delivered, or paid, shall be exempt 
 
 23 from taxation. 
 
 1 Sec. 4. That the taxes on property for the 1865, miposed by 
 
 2 this act, shall be assessed as on the day of the passage of this 
 
 3 act, and shall be due and collected on the first day of July next, 
 
 4 or as soon thereafter as practicable. 
 
 t Sec. 5. That upon each trade, business or occupation, as 
 
 2 specified and defined in the act entitled " an act to amend an act 
 
 3 entitled 'an act to levy taxes for the common defence and caiTy 
 
 4 on the government of the Confederate States, approved April 
 
 5 24, 1^63,' approved February 17, 1864," in lieu of the specific 
 
 6 taxes therein hwied, there shall be paid by the persons following 
 
 7 said trade, business or occupation, the following taxes, to wit: 
 
 8 I. Bankers shall pay one hundred dollars. 
 
 9 2. Auctioneers shall pay ten dollars. 
 
 10 3. Wholesale dealers in liquors of any and every descrip- 
 
 11 tion, including distilled spirits, fermented liquors, and 
 
 12 wines of all kinds, forty dollars. 
 
 13 4. Retail dealers in liquors, including distilled spirits, fer- 
 
 14 mented liquors, and wines of every description, twenty 
 
 15 dollar^. 
 
15 
 
 16 5. Retail dealers, whose quarterly sales shall exceed one 
 
 17 hundred dollars, and be less than five hundred dollars, 
 
 18 five dollars : and where quarterly sales exceed five 
 
 19 hundred dollars, ten dollars. 
 
 20 6. Wholesale dealers shall pay forty dollars. 
 
 21 7. Pawnbrokers shall pay forty dollars. 
 
 22 8. Distillers shall pay forty dollars. 
 
 23 9. Brewers shall pay twenty dollars. 
 
 24 10. Hotels, inns and eating houses of the first class shall 
 
 25 pay one hundred dollars; those of the second class 
 
 26 shall pay sixty dollars ; those of the third class si)all 
 
 27 pay forty dollars ; those of the fourth class shall pay 
 
 28 twenty dollars ; and those of the fifth class shall pay 
 
 29 six dollars. 
 
 30 11. Brokers shall pay forty dollars. 
 
 31 12. Commercial brokers or commission merchants shall pay 
 
 32 forty dollars. 
 
 33 13. Tobacconists shall pay ten dollars. 
 
 34 14. Theatres shall pay one hundred dollars. 
 
 35 15. Bowling alleys and billiard rooms shall pay eight 
 
 36 dollars for each alley or billiard table registered; which. 
 
 37 tax shall be paid by the owner thereof. 
 
 38 16. Livery stable keepers shall pay ten dollars.. 
 
 39 17. liutchers and bakers shall p.iy ten dollars. 
 
 40 18. Cattle brokers shall pay ten dollars. 
 
16 
 
 41 19. Pofldlers shall pay ten dollars. 
 
 42 20. Apothecaries shall pay ton dollars. 
 
 43 21 Photographers shall [tiiy ten dollars. 
 
 44 2:2. Lawyers slutll pay ten dollars. 
 
 45 23. Pliysicians, surgeons and dentists actually engaged in 
 
 46 pnu'tice shall pay ten dollars. 
 
 47 24. Confectioners shall pay ten dollars. 
 
 48 The taxes above levied and specified shall be paid in confe- 
 40 derate treasury notes, certificates of indebtedness, or certified 
 60 accounts of bonded quartermasters and coumiissaries, at the 
 
 51 market value thereof in specie as aforesaid. Nothing in this act 
 
 52 contained shall he construed to exerii[)t the persons engaged in, 
 
 53 or following the trades, business and occupations above desig- 
 
 54 natcd, from the payment of the amount of per centum on sales 
 6-3 as are levied in the act of February 17rh, 1864, aforesaid: and 
 ■50 the taxes above specified, as well as the per centum on sales, 
 .67 shall be paid and collected, under and in accordance with the 
 
 68 provisions of said act, subject to the changes and modifications 
 
 69 above set forth. 
 
 1 Sec. 6. That all soldiers and salaried offi<'ers in the service of 
 
 2 the Confe<lerate States shall l)e allowed and permitted to pay 
 
 3 their taxes to the full amount ol their [)ay or salaries foi the 
 
 4 year for which such taxes are j)ayab1(% in confederate treasury 
 6 notes at par; hut in all cases when' salaries have been increased 
 6 by law, said treasury notc^s offered in payment of the taxes of 
 
i: 
 
 7 such officers shall be reduced so as to represent the original 
 
 8 salary established by law for such officers. 
 
 1 Sec. 7. That the StatecoUector of taxes of each State shall, 
 
 2 immediately after the passage of this act, appoint three discreet 
 
 3 persons in each congressional district in his State, who shall take 
 
 4 and subscribe an oath before some othccr authorized to administer 
 
 5 the same, for the true and faithful performance of their duties 
 G under this act (which oath shall be deposited with such col- 
 
 7 lector), and who shall meet on the fifth day preceding the 
 
 8 first day of July next, at such places in their district as they 
 
 9 or any two of them may agree upon, and shall ascertain and 
 
 10 declare the market value in specie of confederate treasury 
 
 11 notes, certificates of indebtedness, and accounts of bonded 
 
 12 quartermasters and commissaries, for property purchased or im- 
 
 13 pressed for or on account of the government, duly certified to 
 
 14 by such officer as valid and just, and have not been paid by 
 
 15 him for want of funds; and shall immediately make out a writ- 
 
 16 ten declaration of the same, and transmit a copy of the same to 
 
 17 the collector of each county, parish or district in their congres- 
 
 18 sional district, and also a copy to the State collector, on or before 
 
 19 the first day of July: and thereafter said persons shall, on the 
 
 20 fifth day before the expiration of each succeeding month, again 
 
 21 meet, and ascertain and declare the values aforesaid, and make 
 
 22 out and transmit copies of the same as aforesaid ; and the values 
 
 23 so ascertained and declared shall be the rate at which said evi- 
 
 2 
 
18 
 
 24 deuces of government indebtedness and treasury notes shall be 
 
 25 receivable by collectors in payment of taxes during the month 
 20 immediately succeeding such declaration, except when the same 
 27 shall be paid by soldiers and salaried officers of the government, 
 2S as provided in the sixth section of this act.