IN SENATE.

June 27-The bill passed the Senate without a division.

July 2-It passed the House without a division.

-23.

First Session, Thirty-Eighth Congress.

INTERNAL REVENUE ACT OF 1864.

April 28-The House passed the act of 1864 -yeas 110, nays 39. The NAYS were:

Messrs. James C. Allen, William J. Allen, Ancona, Brooks, Chanler, Cox, Dawson, Denison, Eden, Eldridge, Finck, Harrington, Benjamin G. Harris, Herrick, Philip Johnson, William Johnson, Knapp, Law, Le Blond, Long, Marcy, Mc Dowell, McKinney, James R. Morris, Morrison, Noble, John O'Neill, Pendleton, Perry, Robinson, Ross, Stiles, Strouse, Stuart, Voorhees, Ward, Chilton A. White, Joseph W. While, Fernando Wood-39.

June 6-The Senate amended and passed the bill--yeas 22, nays 3, (Messrs. Davis, Hendricks, Powell.)

The bill, as finally agreed upon by a Committee of Conference, passed without a division.

TARIFF ACT OF 1862.

gress:

To the Senate and House of Representatives:

I have signed the joint resolution to provide for the imme diate payment of the army and navy of the United States, passed by the House of Representatives on the 14th and by

the Senate on the 15th instant.

The joint resolution is a simple authority, amounting, however, under existing circumstances, to a direction to the Secretary of the Treasury to make an additional issue of $100,000,000 in United States notes, if so much money is needed, for the payment of the army and navy.

IN HOUSE.

1862, July 1-The House passed, without a division, a bill increasing temporarily the duties on imports, and for other purposes. July 8-The Senate passed it without a division.

THE TARIFF ACT OF 1864.

pay due to our soldiers and our sailors.

While giving this approval, however, I think it my duty to express may sincere regret that it has been found neces sary to authorize so large an additional issue of United States notes when this circulation, and that of the sus pended banks together, have become already so redundant as to increase prices beyond real values, thereby augmenting the cost of living to the injury of labor, and the cost of supplies to the injury of the whole country.

It seems very plain that the continued issues of United States notes, without any check to the issues of suspended

W. White-28.

June 17-The Senate passed the bill--yeas 22, nays 5, (Messrs. Buckalew, Hendricks, McDougall, Powell, Richardson.)

TAXES IN INSURRECTIONARY DISTRICTS, 1862. Second Session, Thirty-Seventh Congress. 1862, May 12-The bill for the collection of taxes in the insurrectionary districts passed the Senate-yeas 32, nays 3, as follows:

YEAS-Messrs. Anthony, Browning, Chandler, Clark, Davis, Dixon, Doolittle, Fessenden, Foot, Foster, Harlan, Harris, Henderson, Howe, King, Lane of Indiana, Lane of Kansas, Latham, McDougall, Morrill, Nesmith, Pomeroy, Rice, Sherman, Sumner, Ten Eyck, Trumbull, Wade, Wilkinson, Willey, Wilson of Massachusetts, Wright-32. NAYS-Messrs. Howard, Powell, Saulsbury-3. May 28 The bill passed House-yeas 98, nays 17. The NAYS were :

Messrs. Biddle, Calvert, Cravens, Johnson, Kerrigan, Law, Mallory, Menzies, Noble, Norton, Pendleton, Perry, Francis Thomas, Vallandigham, Ward, Wickliffe, Wood-17.

The Democrats who voted AYE were: Messrs. Ancona, Baily, Cobb, English, Haight, Holman, Lehman, Odell, Phelps, Richardson, James S. Rollins, Sheffield, Smith, John B. Steele, Wm. G. Steele-14.

money by loans, and for funding the issues so as to keep them within due limits, must soon produce disastrous conthat I feel bound to avail myself of this occasion to ask the sequences. And this matter appears to me so important especial attention of Congress to it.

the country can hardly admit of a doubt; and that a juThat Congress has power to regulate the currency of dicious measure to prevent the deterioration of this cur rency, by a reasonable taxation of bank circulation or

otherwise, is needed, seems equally clear. Independently of this general consideration, it would be unjust to the people at large to exempt banks enjoying the special priv ilege of circulation from their just proportion of the public

burdens.

In order to raise money by way of loans most easily and cheaply, it is clearly necessary to give every possible sup port to the public credit. To that end, a uniform currency, nary public dues, as well as all private dues, may be paid, in which taxes, subscriptions to loans, and all other ordiis almost if not quite indispensable. Such a currency can be furnished by banking associations, organized under a general act of Congress, as suggested in my message at the beginning of the present session. The securing of this cir enlation by the pledge of United States bonds, as therein suggested, would still further facilitate loans, by increasing the present and causing a future demand for such bonds.

In view of the actual financial embarrassments of the Government, and of the greater embarrassments sure to come if the necessary means of relief be not afforded, I feel that I should not perform my duty by a simple an nouncement of my approval of the joint resolution which proposes relief only by increasing circulation, without ex stance as those I have just referred to, may receive the pressing my earnest desire that measures, such in subearly sanction of Congress.

By such measures, in my opinion, will payment be most certainly secured, not only to the army and navy, but to all honest creditors of the Government, and satisfactory provision made for future demands on the Treasury. ABRAHAM LINCOLN.

January 17, 1863.

Which was rejected-yeas 59, nays 78, as follows:

NAYS-Messrs. James C. Allen, William J. Allen, Augustus C. Baldwin, Brooks, James S. Brown, Chanler, Cravens, Creswell, Henry Winter Davis, Dawson, Eden, Eldridge, Finck, Ganson, Hall, Harding, Harrington, Benjamin G. Harris, Herrick, Holman, Asahel W. Hubbard, Hutchins, William Johnson, Kalbfleisch, Kelley, Kernan, King, Knapp, Law, Lazear, Long, Marey, McBride, McDowell, McKinney, William H. Miller, James R. Morris, Morrison, Nelson, Noble, Odell, Pendleton, Pruyn, Radford, Samuel J. Randall, Robinson, James S. Rollins, Ross, Scott, John B. Steele, Strouse, Stuart, Thayer, Thomas, Wheeler, Chilton A. White, Joseph W. White, Williams, Winfield, Fernando Wood The bill was then passed.

IN SENATE.

ON TAXATION.

April 29-The Senate committee reported s substitute for Mr. FENTON'S amendment adopted by the House, which proposed that

STATE TAXATION.

April 16-A new bill, previously introduced, was considered, containing (among others) this provision:

"Every organization under this act shall pay to the Treasurer of the United States a duty of one per cent. each half year, from and after the 1st day of April, in the year 1864, upon the maximum amount of their circulating notes during the six months; and in default of such payment the Treasurer of the United States is hereby authorized to retain one per cent. of the amount of bonds required to be deposited as security for such circulation at each semi-annual payment of the interest thereon; and such duty and the taxes or duties imposed by Congress from time to time shall be in lieu of all other taxes on such associations: Provided, That nothing in this act shall be construed to prevent the market value of the shares in any of the said banking associations, held by any person or body-corporate created by State law, being included in the valuation of the aggregate personal property of such person or state corporation in assessing any tax imposed by any State or municipal authority on the aggregate personal estate of all persons subject to the authority of such State or municipality."

Mr. FENTON moved to substitute this:

And that nothing in this act shall be construed to prevent the taxation by States of the capital stock of banks organized under this act, the same as the property of other moneyed corporations for State or municipal purposes; but no State shall impose any tax upon such associations or their capital, circulation, dividends, or business, at a higher rate of taxation than shall be imposed by such State upon the same amount of moneyed capital in the hands of individual citizens of such State: Provided, That no State tax shall be imposed on any part of the capital stock of such association invested in the bonds of the United States, deposited as security for its circulation.

States bonds. * Provided, That nothing in this act shall be construed to prevent the market value of the shares in any of the said associations, held by any person or body-corporate, from being included in the valuation of the personal property of such person or corporation in the assessment of all taxes imposed by or under State au

thority for State, county, or municipal purposes; but not at a greater rate than is assessed upon all other moneyed capital in the hands of individual citizens of such State. And all the remedies provided by State laws for the collection of such taxes shall be applicable thereto: Provided, also, That nothing in this act shall exempt the real estate of associa tions from either State, county, or municipal taxes to the same extent, according to its value, as other real estate is taxed.

Mr. POMEROY moved to strike out the first proviso, and insert:

Provided, That nothing in this act shall be construed as exempting the capital stock of an association, beyond the amount invested in United States bonds and deposited with the Treasurer of the United States as part of its capital or as security for its circulating notes, from being subject to the same rate of State and municipal taxation as is imposed upon other personal property in the State, city, or town in which the association is located.

Which was rejected-yeas 11, nays 28, as follows:

YEAS-Messrs. Chandler, Conness, Harding, Howard, Lane of Indiana, Pomeroy, Ramsey, Sherman, Sprague, Sumner, Wilkinson-11.

NAYS--Messrs. Buckalew, Carlile, Clark, Collamer, Cowan, Davis, Dixon, Fessenden, Foot, Foster, Grimes, Hale, Harlan, Henderson, Hendricks, Howe, Johnson, Lane of Kansas, McDougall, Morgan, Morrill, Nesmith, Powell, Riddle, Ten Eyck, Van Winkle, Willey, Wilson-28.

Mr. HOWARD moved to amend the proviso so as to make it read:

Provided, That nothing in this act shall be construed to prevent the market value of the shares in any of the said associations, held by any person or body-corporate, from

YEAS-Messrs. Alley, Allison, Ames, Arnold, Ashley, Baily, John D. Baldwin, Baxter, Beaman, Blaine, Boutwell, Broomall, William G. Brown, Ambrose W. Clark, Freeman Clarke, Clay, Cobb, Cole, Dawes, Driggs, Dumont, Eckley, Farnsworth, Fenton, Frank, Gooch, Grinnell, Higby, Hooper, Hotchkiss, John II. Hubbard, Jenckes, Julian, Kasson, Francis W. Kellogg, Orlando Kellogg, Loan, Longyear, Marvin, McClurg, McIndoe, Samuel F. Miller, Moorhead, Morrill, Daniel Morris, Amos Myers, Charles O'Neill, Orth, Patterson, Perham, Pike, Pomeroy, Price, William H. Randall, Alexander II. Rice, John II. Rice, Edward H. Rollins, Shannon, Sloan. Smith, Tracy, Upson, Van Valkenburgh, Ellihu B. Washburne, William B. Washburn, Webster, Wilder, Wilson, Windom, Woodbridge-70.

such person or corporation in the assessment of all taxes municipal purposes in the State where the bank is situated; imposed by or under State authority for State, county, or &c.

Which was rejected-yeas 11, nays 27, as follows:

YEAS-Messrs. Chandler, Conness, Harlan, Hendricks, Howard, Morrill, Pomeroy, Ramsey, Sherman, Sumner, Wilkinson-11.

NAYS-Messrs. Anthony, Buckalew, Clark, Collamer Cowan, Davis, Dixon, Doolittle, Fessenden, Foot, Foster, Grimes, Hale, Henderson, Howe, Johnson, Lane of Indiana,, Lane of Kansas, Morgan, Nesmith, Powell, Riddle, Sprague, Ten Eyck, Van Winkle, Willey, Wilson-27.

May 6-Mr. SUMNER's substitute:*

And in lieu of all other taxes on the capital, circulation, deposits, shares, and other property, every association shall pay to the Treasurer of the United States, in the months of January and July, a duty of one per cont, each half year from and after the 1st day of January, 1864, upon the aver age amount of its notes in circulation, and the duty of one half of one per cent. each half year upon the average amount of its deposits, and a duty of one half of one per cent, each half year, as aforesaid, on the average amount of Its capital stock beyond the amount invested in United States bonds: * Provided, That nothing in this act shall exempt the real estate of associations from either State, county, or municipal taxes to the same extent, according to its value, as other real estate is taxed: Provided also, That all taxes imposed by this or any future act on banking associations organized under national legislation shall be * Mr. SUMNER read this letter from Secretary Chase: TREASURY DEPARTMENT,

May 5, 1864. SIR: Nothing but my deep sense of the importance of sustaining by every possible means the public credit, upon which the sole dependence of the Government to suppress the insurrection must rest, would induce me to address you this letter upon a subject which has already received so much consideration.

The bill in relation to the national banking system now under debate is in the nature of an amendment to the act of the last session. Though a complete bill in itself, it con

tains few provisions not substantially embraced in that act, among which that in relation to the measure and distribution of taxation may be regarded perhaps as the most important. Under ordinary circumstances there might be no Insuperable objection to leaving the property organized under the national banking law, subject as are almost all descriptions of property to general taxation, State, national, and municipal. But in the present condition of the country, I respectfully submit that this particular description of property should be placed in the same category with imported goods before their entry into general consumption, and be subjected to exclusive national taxation. At the present moment the duties on imports form the sole reliance of the Government for means to pay the interest on the public debt. If to these means the taxes to be paid by the national banks shall be added a most important addition will be made to these measures. The mere fact that these taxes are made payable to the national Government and so rendered available for the payment of interest on the public debt, and for the reduction of its principal, will strengthen the public credit and facilitate the negotiation of the necessary loans at moderate rates of interest. I have no doubt that such a disposition of these taxes would be worth more to the Government during the present struggle in practical results than three times the actual value of the taxes themselves.

I do not at all suggest that this description of property should not be taxed as heavily as any other description. On the contrary, I think it just that it should bear its full proportion of the public burdens. I am only anxious that the taxation upon it shall be made to contribute as largely as possible to the general welfare, and it is the conviction deeply impressed on my mind that it will contribute more when aggregated in one mass, and made to tell upon the general public credit, than when distributed between the

nation and the States and numerous municipal corporations, that prompts me to address these views to you.

Under any plan of partition that may be adopted the amount of taxation distributable to the several States and municipalities will be comparatively small and unimportant, and it is quite possible that the total taxation of banking property for all purposes, will be less than it will if taxed exclusively for national purposes. The advantages of partition to States and municipalities will therefore be small, and the banks may not lose by it. The nation alone will be injured. It will not be understood, of course, that the foregoing suggestions are intended to apply to real estate held by any banking institutions; that description of property must necessarily be held by titles under State laws, and should properly be subjected exclusively to State taxation, except in the event of a direct tax by Con

gress.

The case is otherwise with the personal property and credits of the banking associations. These receive their organization from national law and for great national purposes, and may therefore be with great propriety, and as I have endeavored to show at the present time-with great public advantage be subjected to exclusive national taxation.

Respectfully yours,

S. P. CHASE.

The Hon. WILLIAM PITT FESSENDEN,
Chairman of the Committee on Finance, Senate
Chamber.

applied exclusively to the payment of the interest and principal of the national debt of the United States. Which was rejected-yeas 11, nays 24, as follows:

YEAS-Messrs. Chandler, Conness, Howard, Lane of Indiana, Pomeroy, Ramsey, Sherman, Sprague, Sumner, Wilkinson, Wilson-11. NAYS-Messrs. Anthony, Buckalew, Carlile, Clark, Colla mer, Cowan, Davis, Dixon, Doolittle, Fessenden, Foot, Foster, Grimes, Hale, Henderson, Howe, Johnson, Morgan, Powell, Richardson, Riddle, Ten Eyck, Trumbull, Van Winkle-24.

ON SMALL NOTES.

May 10-Mr. BUCKALEW moved to strike out of the twenty-second section the words allowing one, two, and three dollar bills; which was rejected-yeas 8, nays 27, as follows:

YEAS-Messrs. Buckalew, Cowan, Doolittle, Henderson, Powell, Richardson, Riddle, Saulsbury-8.

NAYS-Messrs. Anthony, Clark, Collamer, Conness, Dixon, Foot, Foster, Grimes, Hale, Harlan, Howe, Johnson, Lane of Indiana, Lane of Kansas, Morgan, Morrill, Ramsey, Sherman, Sprague, Sumner, Ten Eyck, Trumbull, Van Winkle, Wade, Wilkinson, Willey, Wilson-27.

ON REPEALING THE BANKING SYSTEM. Mr. POWELL moved to substitute for the whole bill, a section repealing the banking act of February 25, 1863; which was rejected-yeas 6, (Messrs. Buckalew, Henderson, Powell, Richardson, Riddle, Saulsbury,) nays 31. The bill then passed.

The tax

The House non-concurred in the Senate's amendments, when a Committee of Conference was appointed, who reported, June 1. question was settled by adding these words to the thirty-second section:

And nothing in this act shall be construed to prevent all the shares in any of the said associations, held by any person or body corporate, from being included in the valuation of personal property of such person or corporation, in the assessment of taxes imposed by or under State authority, at the place where such bank is located, and not elsewhere; but not at a greater rate than is assessed on other moneyed capital in the bands of individual citizens of said States: Provided further, That the tax so imposed under the law of any State upon the shares of any of the associations authorized by this act shall not exceed the rate imposed on shares in any of the bank organizations under the authority of the State where such association is located.

The bill provides for a tax of one per cent. on the circulation of national banks, one half of one per cent. on their deposits, and one per cent. on their capital above the amount invested in United States bonds.

vision in either house. The report was concurred in, without a di

The Public Debt.

THE PUBLIC CREDIT UNDER BUCHANAN.

December 28, 1860-Bids for $5,000,000 in six per cent. Treasury notes, authorized by act of December 17, 1860, were opened by Philip F. Thomas, Secretary of the Treasury, when it was found that only $2,500,000 were bid for, and this at a rate of discount from seven to thirty-six per cent. Eight thousand five hundred were bid for at seven per cent.; $151,600. at from seven to ten per cent; $1,087,000 at. twelve per cent.; $140,000 at from twelve to twenty per cent.; $325,000 at from twenty to thirty-six per cent.

January 19, 1861-The balance of this loan was taken, the bids being for nearly triple the amount and ranging from eight and a half to fifteen per cent. discount. One bid

of $10,000 was made at twenty per cent. discount.

February 23, 1861-John A. Dix, Secretary of the Treasury, opened the bids for $8,000,000 of six per cent. twenty years' stock of the United

States. Over $14,000,000 were offered; the lowest accepted bid was $90 15 for $100; the highest bid over ninety-six dollars. The whole loan was taken at an average of about 901. Over $4,000,000 were bid for at $90 15.

Of this, these items belonged to the old debt: Funded....

3,270,561 64 878,450 00

74.253.967 55 417,195,016 56

$517,372,802 93 ..$1,098,793,181 67

$302,620 75

...........5 per cent.............

1847

1861, (Feb. 8,) 6 per cent..........

..5 per cent.......

1861, (March 2,) 6 per cent...

Texan indemnity, 5 per cent....

Treasury notes issued prior to 1857, (int. stopped,)..

Treasury notes issued under act of Dec. 23, 1857.

$104,561 64 13,000 00

1,000 00

3,351,019 75

20,000,000 00 7,022,000 00 18,415,000 00 776,750.00 114,115 43 3,461,000 00

......................................... 1,473,225,714 00 1,726,248,411 65 1,780,870,926 00