himself summoned to vindicate before the world his claims to knighthood, crowned his rusty and ill-fitting suit of armor, by clapping a paste-board helmet upon his head-Mr. FESSENDEN, when driven by the duties of his office to give an account of it to the nation, appears to have flung on anything to give his Report an air of completeness, and boldly adopted it without being aware of its incongruity or unadaptiveness.

Witness the general feeling of unnecessary despondency which pervades the Report-the despair of expecting to discover any better means to increase the revenue than those pointed out by the Commissioner of Internal Revenue-the fear of not being able to meet the future gold interest on the public debt-the plaintive moan which closes the Report about the embarrassing and onerous duties of his office-and the hopelessness of expecting Congress to be intelligent enough to assist him in them, unless it consents to be guided by a Commisson.

The latter is too singular an episode to be passed over. Either from a natural repugnance to personally serve as the executioner who shall wield the axe of taxation upon the willing neck of the nation; or from the honest conviction that neither himself, nor the advisers who surround him; nor the two houses of Congress, together, possess that knowledge of Political Economy which is adequate to the occasion-Mr. FESSENDEN urges in his Report the institution of "a Commission, properly constituted, for the purpose of inquiring as to profitable sources of revenue, and devising improvements in the modes of its collection." This, if not owing to the repugnance we have hinted at, is tantamount to that virtual confession of inability to manage his own affairs which a bankrupt makes when he transfers his business to an assignee for the benefit of his creditors. Congress, after all, it seems, requires a Commission, to "assist its deliberations, lighten its labors," and make it "effective." After this, we should not be surprised to see a proposition to abolish Congress altogether.

Upon a par with the hopelessness, implied by the Secretary, of expecting Congress to discharge its duties effectively, without the aid of a Commission, is the evident dejection with which he confesses his inability to perceive any "other re

source for raising the additional revenue, so necessary to "the national credit, than those pointed out by the Commis"sioner" (of Internal Revenue). From this it is plain, that the simple, effective, and important measure, of returning to specie payments, by repealing the Legal Tender law, has never occurred to Mr. FESSENDEN. Can this be true? Is it possible that, not even a thought has been bestowed upon a measure, which, not only would insure incalculable advantages to the Treasury, but save the nation from the greatest curse which legislation has ever laid upon it?

But, more of this, hereafter.

We now proceed to notice the suggestions contained in the Commissioner's Report, and to make a few remarks upon each, in turn. As we go along, we shall sort them into such groups as the lessons to be gathered from them admit; and, after labeling them with their appropriate deductions, put them away into imaginary pigeon-holes, until such time as it may be necessary to draw them forth again. By this means, we hope to avoid confusion, and to attain that clearness and order of arrangement which is so important in a review embracing so many subjects.

THE CIGAR TRADE.-An effective method of taxing manufactured tobacco appears to be so difficult of attainment, that the Commissioner advocates, in lieu of it, taxing the whole tobacco product in the leaf.* Should it, however, be decided to continue the tax upon the manufacture, he suggests that an ad valorem scale be adopted, the present plan of specific duties being too complex and unfair. Statistics are adduced in the Report, to show that, while the exports of unmanufactured tobacco to Canada have largely increased, the exports of manufactured tobacco have as largely decreased. This is only one of the natural results of injudicious legislation.

Exports of Leaf Tobacco to Canada.

* * *

* "The law furnishes no rule by which the taxable value of cigars shall be assessed, yet the assistant assessor must assess them. Another result of this mode of taxation is, that it is more profitable for a manufacturer to sell his cigars at $11 per thousand than at $15, at $25 than at $31, at $69 than at $85, and at $84 than at $98."-Report of Commissioner of Int. Rev.

THE COAL TRADE.-The statistics of the coal trade exhibit the same principle at work. By the Excise Act of 1862, a duty of three cents and one-half per ton was laid on mineral coals. "This was not a large tax, and, of itself, could pro"duce but little effect on the course of trade," says the Commissioner. But the Commissioner is wrong; for, when an industry is unprotected, it will be found, on examination, that it is prosecuted for the lowest possible profits, and, upon this minimum gain, it is difficult to conceive of a tax so small that it will have "but little effect."

While it requires extraordinary means to turn aside a river walled in by granite cliffs, the least impediment suffices to alter the course of one whose waters flow unrestricted and unencompassed. The consequence is, that, to some considerable extent, our coal trade has gone where our tobacco trade has to the British Provinces. "In 1860-61, the amount of coal imported "from Nova Scotia was but 204,420 tons, valued at $702,165 "[$3.43 per ton?]; while, in 1862-63, it had risen to 282,767

tons, valued at $757,048 [$2.67 per ton, paper money?]; and, "in 1863-64, to about 500,000 tons, worth more than "$2,500,000 [$5 per ton, paper money?]. The present tax "(Act of June 30, 1864) of five cents, will operate somewhat "more decidedly in the same direction." While we suspect the exactness of the Commissioner's figures (for the amounts of tons do not appear to agree very well with the gross valuations accompanying them, and which we have reduced to the price per ton), we find, in the exhibition of the fact they are adduced to support, another confirmation of the universal principle, that progress, like force, moves in the direction of the least resistance.

THE MATCH TRADE.-The result has been the same with the trade in friction matches, as with that in tobacco and coal. According to the Commissioner's Report, even this darling heir-loom of New-England industry has, to a considerable

extent, departed from the land, and gone over to our neighbors in Canada and New-Brunswick.*

THE LIQUOR TRADE.-The statistics of the corn trade establish the same condition of affairs in regard to spirits. The export of Indian corn to Canada, during the last three years, according to the tables of exports of foreign and domestic commerce, communicated by the Secretary of the Treasury to Congress, under the Act of March 12, 1864, appear to have been as follows:

Repeating the suspicion we have already had occasion to express, concerning the accuracy of the Commissioner's figures, we proceed to quote, in the words of his Report, the corollary established by these statistics:

"This large amount, it is certain, was not needed for consumption in Canada, but for manufacture, for that country produces grain abundantly; and, during the last year, while it exported the great quantity of corn already stated, we imported thence 806,153 barrels of flour. The corn was, it is presumed, for the most part, converted into spirits. It is difficult to conjecture what else became of it. and the business of distilling is known to be prosecuted there with much activity. The Provincial excise duties being lower than ours, and the opportunities for illicit traffic being great, it can hardly be doubted, that no inconsiderable portion of Canadian distillation, the material for which was the growth of our own soil, crossed the line without paying duty, and was sold in

*Speaking of the Excise Act of June 30, 1864, the Commissioner says: "In order to relieve importers of the articles described in Schedule C, from the necessity of affixing stamps to the bottles, boxes, or parcels contained in each package, in which they were exported before disposing of thein by wholesale, it was provided, in the 169th section, that, when any such imported articles shall be sold in the original or unbroken packages, in which the bottles or other inclosures were packed by the manufacturer, the person so selling said article shall be subject to any penalty, for want of the proper stamps. But for this provision, every importer would have been obliged to break each original package, and stamp every particular parcel contained in it, before he could have legally sold it, even to a wholesale dealer. Manufacturers of friction matches in Canada and New Brunswick have abused the privilege thus allowed them, and have made up packages of their wares in convenient sizes, for sale by retail, and they are sold, unbroken, to the consumer. The impost duty on friction matches is too inconsiderable to protect the domestic manufacture, which is threatened with destruction by this sharp device. * * * Lest, however, the manufacturers of other articles named in the schedule may follow the example of the foreign friction match makers, and thus pervert the liberality of the law to fraudulent purposes, the repeal of the proviso is recommended."—Report of the Commisioner of Int. Rev., p. 14.

our markets. Now that the excise on spirits in the United States is ten times greater than that imposed in the adjoining Provinces, the stimulus to this manufacture, beyond the border, and to contraband importation, will act with increased power. The information we receive from private sources gives point to this suggestion."

The remedy suggested by the Commissioner is alike for all the cases;-a recision of the Reciprocity Treaty with Canada, and increase of the customs and revenues, so as to make profitable importations of these manufactures from the Provinces impossible. In other words, around the pack-horse whose burden has been so great that he has been obliged to shake part of it off, and lie down for momentary rest, a wall is to be built, which will not only keep his pack in its place, but prevent him from ever again indulging his ease. Can any one doubt, that if it be, as is commonly averred, England's desire to humble this country, she now possesses a more effectual means of doing so, by gradually, through her Canadian Provinces, usurping our manufacturing industries, and absorbing our productive population, by reason of the laws we have ourselves set up, than she ever did by hostile diplomacy, or armed intimidation? Speaking the same language, owning a common ancestry, and separated by no greater barrier than a bridged stream, it only remains for England to strike off the light bonds that now fetter the progress of her American Provinces, to see large portions of our industrial population, emigrate to them, banished from the land of their nativity and adoption, by the workings of unequal and oppressive tax laws.

We have now done with the taxes on cigars, tobacco, coals, friction matches, and spirits. We bundle them up together, tie a piece of red tape around them, labelled, "Industries which have partly emigrated to Canada, and are now sought to be brought back," and put them away in a pigeon hole. We next take up the balance of the principal suggestions made by the Commissioner, and which are not repeated at length in Mr. FESSENDEN'S Report proper. Those which are, we reserve for more especial consideration.

THE PETROLEUM TRADE.-The operation of the tax upon this industry, is sufficiently exhibited in the words of the Commissioner :