Report of the Secretary of the.
The
Secretary treats the subject of the
National Finances under the three heads, The Currency, Public Debt, and Revenue.
The Currency.
The policy of reduction of the volume of the currency is advocated.
The objections urged against such reduction are all recounted and met. He recommends--
- First, That compound interest-bearing notes cease to be legal tender from the date of their maturity.
- Second, That he be authorized to sell United States bonds bearing interest at six per cent., redeemable and payable at such periods as may be conducive to the interests of the Government, for the purpose of retiring not only compound interest notes, but United States notes.
The Public debt.
"It was incurred for the common good, and its burdens should be cheerfully borne. " It "represents a portion of the accumulated wealth of the country.
While it is a debt to the nation, it becomes the capital of the citizen." The
Secretary advocates--First, Funding the obligations that are soon to mature.
Second, To provide for revenues necessary to meet the interest on the debt.
He calls for decided and emphatic legislation on this subject.
The revenue.
The
Secretary thinks it "important that our revenue system be frequently and carefully revised, in order that it may be accommodated to the habits and character of the people. " "Every complicated system of taxation opens the way to mistakes, abuses and deceptions." "Heavy taxation may drive capital from our shores, or prevent its employment in the manner most advantageous to the country." He recommends-- "First, That the collection of internal revenue taxes which accrued before the establishment of revenue offices in the States recently in rebellion be indefinitely postponed.
Second, That all sales of property in those States, under the direct tax law, be suspended until the States shall have an opportunity of assuming (as was done by the loyal States) the payment of the tax imposed upon them.
Third, That all transactions in such States which may be invalid by the non-use of stamps be legalized so far as it is in the power of Congress to legalize them.
