other security. If the currency is not greatly and promptly reduced, the present scale of inflated prices will not only continue to exist, but by the very fact of the large amounts thus made requisite in the conduct of the war, those prices will reach rates still more extravagant, and the whole system will fall under its own weight, thus rendering the redemption of the debt impossible, and destroying its whole value in the hands of the holder. If, on the contrary, a funded debt, with interest secured by adequate taxation, can be substituted for the outstanding currency, its entire amount will be made available to the holder, and the government will be in a condition enabling it, beyond the reach of any probable contingency, to prosecute the war to a successful issue. It is, therefore, demanded, as well by the interest of the creditor as of the country at large, that the evidences of the public debt now outstanding, in the shape of treasury notes, be converted into bonds bearing adequate interest, with a provision for taxation sufficient to insure punctual payment, and final redemption of the whole debt. The report of the Secretary of the Treasury presents the outlines of a system which, in conjunction with existing legislation, is intended to secure the several objects of a reduction of the circulation within fixed reasonable limits; of providing for the future wants of the government; of furnishing security for the punctual payment of interest and final extinction of the principal of the public debt; and of placing the whole business of the country on a basis as near a specie standard as is possible during the continuance of the war. I earnestly recommend it to your consideration, and that no delay be permitted to intervene before your action on this vital subject. I trust that it will be suffered to engross your attention until you shall have disposed of it in the manner best adapted to attain the important results which your country anticipate from your legislation. It may be added that, in considering this subject, the people ought steadily to keep in view that the government, in contracting debt, is but their agent; that its debt is their debt. As the currency is held exclusively by ourselves, it is obvious that, if each person held treasury notes in exact proportion to the value of his whole means, each would in fact owe himself the amount of the notes held by him, and, were it possible to distribute the currency among the people in this exact proportion, a tax levied on the currency alone, to an amount sufficient to reduce it to proper limits, would afford the best of all remedies. Under such circumstances, the notes remaining in the hands of each holder, after the payment of his tax, would be worth quite as much as the whole sum previously held, for it would purchase at least an equal amount of commodities. The result cannot be perfectly attained by any device of legislation, but it can be approximated by taxation. A tax on all values has, for its effect, not only to impose a due share of the burden on the note-holder, but to force those who have few or none of the notes to part with a share of their possessions to those who hold the notes in excess, in order to obtain the means of satisfying the demands of the tax-gatherer. This is the only mode by which it is practicable to make all contribute as equally as possible in the burden which all are bound to share, and it is for this reason that taxation adequate to the public exigencies, under our present circumstances, must be the basis of! any funding system or other remedy for restoring stability to our finances.
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Doc . 3 .-attack on the defences of Mobile .
Surrender of Fort Powell .
Battle of Olustee .
Battle of Pleasant Hill .
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