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Our Financial Legislation.

The financial legislation has been as follows: 1860, December 17-Authorized an issue of $10,000,000 in TREASURY NOTES, to be redeemed after the expiration of one year from the date of issue, and bearing such a rate of interest as may be offered by the lowest bidders. Authority was given to issue these notes in payment of warrants in favor of public creditors at their par value, bearing six per cent. interest per annum.

1861, February 8-Authorized a LOAN of $25,000,000, bearing interest at a rate not exceeding six per cent. per annum, and reimbursable within a period not beyond twenty years nor less than ten years. This loan was made for the payment of the current expenses, and was to be awarded to the most favorable bidders.

LOANS of $50,000,000, making the whole amount author $100,000,000.

March 1-Authorized an issue of CERTIFICATES OF INDEBTEDNESS, payable one year from date, in settlement of audited claims against the Government. Interest 6 per cent. per annum, payable in gold on those issued prior to March 4, 1863, and in lawful currency on those issued on and after that date. Amount of issue not specified.

1862, July 11-Authorized an additional issue of $150,000,000 legal tender NOTES, $35,000,000 of which might be in de nominations less than five dollars. Fifty million dollars of this issue to be reserved to pay temporary loans promptly in case of emergency.

July 17-Authorized an issue of NOTES of the fractional part of one dollar, receivable in payment of all dues, except customs, less than five dollars, and exchangeable for United States notes in sums not less than five dollars. Amount of

1863, January 17-Authorized the issue of $100,000,000 in United States NOTES for the immediate payment of the army and navy; such notes to be a part of the amount provided for in any bill that may hereafter be passed by this Congress. The amount in this resolution is included in act of March 3, 1863.

March 2-Authorized a LOAN of $10,000,000, bearing interest at a rate not exceeding six per cent. per annum, and re-issue not specified. imbursable after the expiration of ten years from July 1, 1861. In case proposals for the loan were not acceptable, authority was given to issue the whole amount in TREASURY NOTES, bearing interest at a rate not exceeding six per cent. per annum. Authority was also given to substitute TREASURY NOTES for the whole or any part of the loans for which the Secretary was by law authorized to contract and issue bonds, at the time of the passage of this act, and such treasury notes were to be made receivable in payment of all public dues, and redeemable at any time within two years from March 2, 1861.

March 2-Authorized an issue, should the Secretary of the Treasury deem it expedient, of $2,800,000 in coupon BONDS, bearing interest at the rate of six per cent. per annum, and redeemable in twenty years, for the payment of expenses incurred by the Territories of Washington and Oregon in the suppression of Indian hostilities during the years 1855-'56.

July 17-Authorized a loan of $250,000,000, for which could be issued BONDS bearing interest at a rate not exceeding 7 per cent. per annum, irredeemable for twenty years, and after that redeemable at the pleasure of the United

States.

TREASURY NOTES bearing interest at the rate of 7.30 per cent. per annum, payable three years after date; and United States NOTES without interest, payable on demand, to the extent of $50,000,000. (Increased by act of February 12, 1862, to $60,000,000.)

The bonds and treasury NOTES to be issued in such proportions of each as the Secretary may deem advisable.

August 5-Authorized an issue of BONDS bearing 6 per cent. interest per annum, and payable at the pleasure of the United States after twenty years from date, which may be issued in exchange for 7.30 treasury notes; but no such bonds to be issued for a less sum than $500, and the whole amount of such bonds not to exceed the whole amount of 7.30 treasury notes issued.

1862, February 25-Authorized the issue of $150,000,000 in legal tender United States NOTES, $50,000,000 of which to be in lieu of demand notes issued under act of July 17, 1861, $500,000,000 in 6 per cent. bonds, redeemable after five years, and payable twenty years from date, which may be exchanged for United States notes, and a temporary loan of $25,000,000 in United States notes for not less than thirty 'days, payable after ten days' notice at 5 per cent. interest per annum.

March 17-Authorized an increase of TEMPORARY LOANS of $25,000,000, bearing interest at a rate not exceeding 5 per

cent. per annum.

July 11-Authorized a further increase of TEMPORARY

March 3-Authorized a LOAN of $300,000,000 for this and $600,000,000 for the next fiscal year, for which could be is sued bonds running not less than ten nor more than forty years, principal and interest payable in coin, bearing interest at a rate not exceeding 6 per cent. per annum, payable on bonds not exceeding $100, annually, and on all others semi-annually. And TREASURY NOTES (to the amount of $400,000,000) not exceeding three years to run, with interest at not over 6 per cent. per annum, principal and interest payable in lawful money, which may be made a legal tender for their face value, excluding interest, or convertible into United States notes. And a further issue of $150,000,000 in United States NOTES for the purpose of converting the Treas ury notes which may be issued under this act, and for no other purpose. And a further issue, if necessary, for the payment of the army and navy, and other creditors of the Government, of $150,000,000 in United States NOTES, which amount includes the $100,000,000 authorized by the joint resolution of Congress, January 17, 1863. The whole amount of bonds, treasury notes, and United States notes issued under this act not to exceed the sum of $900,000,000.

March 3-Authorized an issue not exceeding $50,000,000 in FRACTIONAL CURRENCY, (in lieu of postage or other stamps,) exchangeable for United States notes in sums not less than three dollars, and receivable for any dues to the United States less than five dollars, except duties on imports. The whole amount issued, including postage and other stamps issued as currency, not to exceed $50,000,000. Authority was given to prepare it in the Treasury Department, under the supervision of the Secretary.

1861, March 3-Authorized, in lieu of so much of the loan of March 3, 1863, a LOAN of $200,000,000 for the current fiscal year, for which may be issued bonds redeemable after five and within forty years, principal aud interest payable in coin, bearing interest at a rate not exceeding 6 per cent. per annum, payable annually on bonds not over $100, and on all others semi-annually. These bonds to be exempt from taxation by or under State or municipal authority.

1864, June 30-Authorized a LOAN of $400,000,000, for which may be issued bonds, redeemable after five nor more than thirty years, or if deemed expedient, made payable at any period not more than forty years from date-interest not exceeding six per cent. semi-annually, in coin. Secre tary of the Treasury is authorized to dispose of these bonds,

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Baxter, Boutwell, Boyd, Cobb, Cole, Creswell, Dawes, Dem.
ing, Dixon, Driggs, Eckley, Eliot, Garfield, Gooch, Higby,
Hooper, Hotchkiss, J. H. Hubbard, Ingersoll, Jenckes,
Julian, Kelley, Longyear, McClurg, Moorhead, Morrill, D.
Morris, Leonard Myers, Norton, Charles O'Neill, Perham,
Alexander H. Rice, John H. Rice, Edward H. Rollins,
Schenck, Shannon, Sloan, Smith, Smithers, Francis Thomas,
Tracy, Upson, Ellihu B. Washburne, William B. Washburn,
Webster, Wilder, Wilson, Windom, Woodbridge-53.
NAYS-Messrs. Ancona, Baily, Bliss, Brooks, Chanler,
Coffroth, Cox, Dawson, Denison, Eden, Edgerton, Eldridge,
English, Ganson, Harding, Benjamin G. Harris, Charles M.
Harris, Hutchins, William Johnson, Kernan, Knapp, Law,
Lazear, Le Blond, Littlejohn, Long, Marcy, Middleton, Wm.
H. Miller, James R. Morris, Morrison, Noble, Odell, John
O'Neill, Pendleton, Pruyn, Samuel J. Randall, Robinson,
James S. Rollins, Ross, Scofield, John B. Steele, William
G. Steele, Stevens, Stiles, Sweat, Ward, Williams, Winfield
-49.

Seventy-eight absentees.

or any part, and of the remainder of the five-twenties, in the
United States or in Europe, on such terms as he may deem
most advisable, for lawful money of the United States, or, at
his discretion, for Treasury notes, certificates of indebted-
ness, or certificates of deposit issued under any act of Con-
gress. And all bonds, Treasury notes, and other obligations
of the United States shall be exempt from taxation by or
under State or municipal authority. In lieu of an equal
amount of bonds, not exceeding $200,000,000, the Secretary
is authorized to issue Treasury notes of not less than $10,
payable at any time not exceeding three years, or, if thought
expedient, redeemable at any time after three years, at an
interest not exceeding seven and three tenths per cent.,
payable in lawful money at maturity, or, at the discretion
of the Secretary, semi-annually. And the said Treasury
notes may be disposed of by the Secretary of the Treasury,
on the best terms that can be obtained, for lawful money;
and such of them as shall be made payable, principal and
interest, at maturity, shall be a legal tender to the same
extent as United States notes for their face value, excluding
interest, and may be paid to any creditor of the United
States at their face value, excluding interest, or to any
creditor willing to receive them at par, including interest;
and any Treasury notes issued under the authority of this
act may be made convertible, at the discretion of the Secre-
tary of the Treasury, into any bonds issued under the au-
thority of this act. And the Secretary of the Treasury may
redeem and cause to be cancelled and destroyed any Treas
ury notes or United States notes heretofore issued under
authority of previous acts of Congress, and substitute, in
Lieu thereof, an equal amount of Treasury notes such as are
authorized by this act, or of other United States notes: Pro-ardson, Riddle, Saulsbury—7.
vided, That the total amount of bonds and Treasury notes
authorized by the first and second sections of this act shall
not exceed $400,000,000 in addition to the amounts hereto-
fore issued; nor shall the total amount of United States
notes, issued or to be issued, ever exceed $400,000,000, and
such additional sum, not exceeding $50,000,000, as may be
temporarily required for the redemption of temporary loan;
nor shall any Treasury note bearing interest, issued under
this act, be a legal tender in payment or redemption of any
notes issued by any bank, banking association, or banker,
calculated or intended to circulato as money.

SEC. 3. That the interest on all bonds heretofore issued, payable annually, may be paid semi-annually; and in lieu of such bonds authorized to be issued, the Secretary of the Treasury may issue bonds bearing interest payable semiannually. And he may also issue in exchange for Treasury notes heretofore issued bearing seven and three-tenths per certum interest, besides the six per cent honds heretofore authorized, like bonds of all the denominations in which said Treasury notes have been issued; and the interest on such Treasury notes after maturity shall be paid in lawful money, and they may be exchanged for such bonds at any time within three months from the date of notice of redemption by the Secretary of the Treasury, after which the interest on such Treasury notes shall cease. And so much of the law approved March 3, 1864, as limits the loan authorized therein to the current fiscal year, is hereby repealed; and the authority of the Secretary of the Treasury to borrow money and issue therefor bonds or notes conferred by the first section of the act of March 3, 1863, entitled "An act to provide ways and means for the support of the Government," shall cease on and after the passage of this act, except so far as it may effect [affect] $75,000,000 of bonds

already advertised.

SPECIAL WAR INCOME TAX.

Resolved, dc., That, in addition to the income duty already imposed by law, there shall be levied, ausessed, and collected on the first day of October eighteen hundred and sixty-four, a special income duty upon the gains, profits, or income for the year ending the thirty-first day of December next preceding the time herein named, by levying, asBessing, and collecting said duty of all persons residing within the United States, or of citizens of the United States residing abroad, at the rate of five per centum on all sums exceeding six hundred dollars, and the same shall be levied, assessed, estimated, and collected, except as to the rates, according to the provisions of existing laws for the collection of an income duty, annually, where not inapplicable hereto; and the Secretary of the Treasury is hereby authorized to make such rules and regulations as to time and mode, or other matters, to enforce the collection of the special income duty herein provided for, as may be necesBary: Provided, That in estimating the annual gains, profits, or income, as aforesaid, for the foregoing special income duty, no deductions shall be made for dividends or interest received from any association, corporation, or company, nor shall any deduction be made for any salary or pay received. This resolution passed the House, July 4feas 53, nays 49, as follows:

It passed the Senate same day—yeas 28, nay 7, as follows:

YEAS-Messrs. Anthony, Clark, Conness, Cowan, Doo. little, Foot, Foster, Hale, Harlan, Harris, Hicks, Howe, Johnson, Lane of Iudiana, Lane of Kansas, McDougall, Mor gan, Morrill, Pomeroy, Ramsey. Sherman, Sumner, Ten Eyck, Trumbull, Van Winkle, Wilkinson, Willey, Wilson NAYS-Messrs. Buckalew, Carlile, Davis, Powell, Rich

-28.

66

Legal Tenders.”

Second Session, Thirty-Seventh Congress. 1862, Feb. 6-The House came to a vote on two propositions for the issue of $150,000,000 in Treasury notes.

The one, for notes without interest, and denomination not below $5-of which $50,000,000 should be in lieu of so many of the "Demand notes"-to be receivable for all duties, imposts, excises, debts, and demands of every kind due to the United States, and all salaries, &c., from the United States, "and shall also be lawful money, and a legal tender in payment of all debts, public and private, within the United States," to be exchangeable for twenty year six per cent. bonds, interest payable semi-annually, or five year seven per cent. bonds with interest payable semi-annually in coin. Such United States notes to be received the same as coin in payment for loans. Five hundred millions of bonds authorized, payable after twenty years, at six per cent. interest payable semi-annually.

ized $100,000 of Treasury notes at 3.65 per The other, offered as an amendment, authorcent. per annum, payable in two years, to be receivable for all public dues except duties on imports, and for all salaries, debts, and demands owing by the United States to individ uals, corporations, and associations within the United States, at the option of such individuals, corporations, and associations, exchangeable for 7.30 bonds with interest payable semiannually in coin, and receivable the same as coin in payment of loans. $500,000,000 of bonds authorized-$200,000,000 at 7:30 interest payable semi-annually in coin, and redeemable after ten years, and $300,000,000, redeemable after twenty-four years, at 6 per cent., payable semi-annually in coin.

The latter was rejected-yeas 55, nays 95, as follows:

YEAS-Messrs. Ancona. Baxter, Biddle, George H. Browne, William G. Brown, Cobb, Frederick A. Conkling, Roscoe Conk ing. Conway, Corning, Cox, Cravens Crisfield, Crit tenden, Diven, Eliot, English, Goodwin, Grider, Harding, YEAS-Messrs. Alley, Allison, Ames, Isaac N. Arnold, Holman, Horton, Johnson, Law, Lazear, Lovejoy, May,

Menzies, Justin S. Morrill, Morris, Nixon, Noble, Norton, Nugen, Odell, Pendleton, Perry, Pomeroy, Porter, Edward H. Rollins, Sedgwick, Sheffield, Shiel, William G. Steele, Stratton, Benjamin F. Thomas, Francis Thomas, Train, Vallandigham, Wadsworth, E P. Walton, Ward, Webster, Chilton A. White, Wright-55.

NAYS-Messrs. Aldrich, Alley, Arnold, Ashley, Babbitt, Goldsmith F. Bailey, Joseph Baily. Baker, Beaman, Bingham, Francis P. Blair, Jacob B. Blair, Samuel S. Blair, Blake, Buffinton, Burnham, Campbell, Chamberlain, Clark, Colfax, Cutler, Davis, Delano, Delaplaine, Duell, Dunlap, Dunn, Edgerton, Edwards, Ely, Fenton, Fessenden, Fisher, Franchot, Frank, Gooch, Granger, Gurley, Haight, Hale, Hanchett, Harrison, Hickman, Hooper, Hutchins, Julian, Kelley, Francis W. Kellogg, William Kellogg, Killinger, Knapp, Lansing, Leary, Loomis, McKean, McKnight, McPherson, Marston, Maynard, Mitchell, Moorhead, Anson P. Morrill, Olin, Patton, Timothy G. Phelps, Pike, Price, Alexander H. Rice, John II. Rice, Richardson, James S. Rollins, Sargent, Shanks, Shellabarger, Sherman, Sloan, Spaulding, John B. Steele, Stevens, Trimble, Trowbridge, Upton, Van Horn, Van Valkenburgh, Van Wyck, Verree, Wall, Wallace, Charles W. Walton, Whaley, Albert S. White, Wickliffe, Wilson, Windom, Worcester-95.

The affirmative vote on the passage of the former was the same as the negative on the amendment except that Messrs. W. G. Brown and Crittenden, who voted aye on the amendment, did not vote on the passage of the bill; Messrs. Dunlap, Knapp, Richardson, and Wickliffe, who voted nay on the amendment, voted nay on the passage; Messrs. Mallory, Robinson, and Voorhees, who did not vote on the amendment, voted nay on the passage; Mr. Nugen, who voted aye on the amendment, voted aye on the passage; and Messrs. Dunn and Riddle, who did not vote on the amendment, voted aye on the passage.

IN SENATE.

February 12-The Committee of Finance recommended instead of making these notes receivable for all demands due to, and all demands owing by, the United States, this substi

tute:

And such notes herein authorized shall be receivable in payment of all public dues and demands of every description, and of all claims and demands ag: inst the United States of every kind whatsoever, except for interest upon bonds and notes, which shall be paid in coin.

Mr. SHERMAN moved to include with these

notes, "the notes authorized by the act of July 17, 1861;" which was agreed to.

The amendment as amended was agreed to. Feb. 13-Mr. COLLAMER moved to strike out these words:

And such notes herein authorized and the notes authorized by the act of July 17, 1861, shall be receivable in payment of all public dues and demands of every description, and of all claims and demands against the United States of every kind whatsoever, except for interest upon bonds and notes, which shall be paid in coin, and shall also be lawful money and a legal tender in payment of all debts, public and private, within the United States, except interest as aforesaid.

Which was rejected-yeas 17, nays 22, as follows:

YEAS-Messrs. Anthony, Bayard, Collamer, Cowan, Fessenden, Foot, Foster, Kennedy, King, Latham, Nesmith, Pearce, Powell, Saulsbury, Simmons, Thomson, Willey-17. NAYS-Messrs. Chandler, Clark, Davis, Dixon, Doolittle, Harlan, Harris, Henderson, Howard, Howe, Lane of Indiaua, McDougall, Morrill, Pomeroy, Rice, Sherman, Sumner,

Ten Eyck, Wade, Wilkinson, Wilson of Massachusetts, Wilson of Missouri-22.

Mr. DOOLITTLE moved to amend the bill so as to make the notes a legal tender "in payment of all public debts, and all private debts hereafter contracted within the United States;" which was rejected without a division.

Mr. KING offered an amendment, proposing,

among other things, to strike out the legal tender clause; but it was rejected without a division.

The bill was then passed-yeas 30, nays 7, as follows:

YEAS-Messrs. Anthony, Chandler, Clark, Davis, Dixon, Doolittle, Fessenden, Foot, Foster, Grimes, Hale, Harlan, Harris, Henderson, Howard, Howe, Lane of Indiana, Le tham, McDougall, Morrill, Pomeroy, Rice, Sherman, Sumner, Ten Eyck, Trumbull, Wade, Wilkinson, Wilson of Massachusetts, Wilson of Missouri-30. NAYS-Messrs. Collamer, Cowan, Kennedy, King, Pearce, Powell, Saulsbury-7.

Feb. 20-In the House, the question being on concurring in the amendment of the Senate making the interest upon bonds and notes payable in coin,

Mr. STEVENS moved to include also "payments to officers, soldiers, and sailors, in the Army and Navy of the United States, and for all supplies purchased for the said Government;" which was rejected-yeas 67, nays 72.

The amendment of the Senate, making interest payable in coin was then concurred in-yeas 88, nays 55, as follows:

Biddle, Jacob B. Blair, George H. Browne, William G. YEAS-Messrs. Ancona, Arnold, Ashley, Baxter, Beaman, Brown, Burnham, Calvert, Clements, Cobb, Frederick A. Conkling, Roscoe Conkling, Conway, Covode, Coz, Cravens, Crittenden, Diven, Dunlap, Dunn, Eliot, English, Goodwin, Johnson, Kelley, Knapp, Law, Leary, Lehman, Loomis, Grider, Gurley, Haight, Hull, Harding, Holman, Horton, Lovejoy, McKnight, Mallory, May, Menzies, Justin S. Morrill, Nixon, Noble, Norton, Nugen, Odell, Patton, Pendleton, Perry, Timothy G. Phelps, Pike, Pomeroy, Alexander H. Rice, Riddle, Robinson, Edward H. Rollins, James & Rollins, Sargent, Sedgwick, Sheffield, Sherman, Shiel, Smith, John B. Steele, William G. Steele, Stratton, Benjamin F. Thomas, Francis Thomas, Train, Trimble, Fallandigham, Vibbard, Voorhees, Charles W. Walton, E. P. Walton, Ward, Washburne, Webster, Whaley, Wheeler, Wickliffe, Woodruff, Wright-88.

NAYS-Messrs. Aldrich, Alley, Babbit, Joseph Baily, Baker, Bingham, Francis P. Blair, Samuel S. Blair, Elake, Buffinton, Campbell, Chamberlain, Clark, Davis, Dawes, Duell, Edwards, Ely, Fenton, Fessenden, Fisher, Franchot, Frank, Granger, Hale, Hanchett, Harrison, Hickman, Hooper, Julian, William Kellogg, Killinger, Lansing, McPherson, Marston, Maynard, Moorhead, Auson P. Morrill, Noell, Olin, John H. Rice, Shanks, Sloan, Spaulding, Stevens, Trow bridge, Van Horn, Van Valkenburgh, Verree, Wall, Wallace,

Albert S. White, Wilson, Windom, Worcester-55.

Other amendments were non-concurred in, and a Committee of Conference agreed upon the bill as it became a law.

One feature of this report was to provide that the Treasury notes issued under the bill should not be a legal tender in payment of duties, and the duties on imports, made payable in coin, should be pledged for the payment of interest on the bonds.

The report was agreed to in the House-yeas 98, nays 22. The NAYS were

Messrs. Baker, Biddle, Buffinton, Cor, Edwards, English, Haight, Hooper, Johnson, Justin S. Morrill, Odell, Pendleton, Perry, Pike, Robinson, Sheffield, William G. Steele, Van Wyck, Voorhees, Wickliffe, Wood, Woodruff-22.

The Senate concurred without a division. While this question was pending before the Committee of Ways and Means, the Secretary of the Treasury, Mr. CHASE, addressed them a letter, from which this is an extract:

TREASURY DEPARTMENT, January 29, 1862. resolution of the Committee of Ways and Means, referring SIR: I have the honor to acknowledge the receipt of a me to House bill No. 240, and requesting my opinion as to the propriety and necessity of its immediate passage by Congress.

The condition of the Treasury certainly renders immedi ate action on the subject of affording provision for the e...

penditures of the Government, both expedient and necessary. The general provisions of the bill submitted to me, seem to me well adapted to the end proposed. There are, however, some points which may, perhaps, be usefully

amended.

prohibits the circulation of bank notes of a less denomination than five dollars in the District of Columbia," has received my attentive consideration, and I now return it to the Senate, in which it originated, with the following objections:

The provision making United States notes a legal tender has doubtless been well considered by the committee, and their conclusion needs no support from any observation of mine. I think it my duty, however, to say, that in respect 1. The bill proposes to repeal the existing to this provision my reflections have conducted me to the same conclusions they have reached. It is not unknown legislation, prohibiting the circulation of bank to them that I have felt, nor do I wish to conceal that I now notes of a less denomination than five dollars feel, a great aversion to making anything but coin a legal within the District of Columbia, without pertender in payment of debts. It has been my anxious wish to avoid the necessity of such legislation. It is, however, mitting the issuing of such bills by banks not at present impossible, in consequence of the large expendi- now legally authorized to issue them. In my tures entailed by the war, and the suspension of the banks, judgment, it will be found impracticable, in to procure sufficient coin for disbursements; and it has the present condition of the currency, to make therefore, become indispensably necessary that we should resort to the issue of United States notes. The making such a discrimination. The banks have generthem a legal tender might, however, still be avoided if the ally suspended specie payments; and a legal willingness manifested by the people generally, by railroad companies, and by many of the banking institutions, to sanction given to the circulation of the irrereceive and pay them as money in all transactions were deemable notes of one class of them, will almost lutely or practically universal; but, unfortunately, there certainly be so extended, in practical operation, are some persons and some institutions which refuse to receive and pay them, and whose action tends not merely to as to include those of all classes, whether authorthe unnecessary depreciation of the notes, but to establish ized or unauthorized. If this view be correct, discrimination in business against those who, in this matter, give a cordial support to the Government, and in favor

the currency of the District, should this act of those who do not. Such discriminations should, if pos- become a law, will certainly and greatly desible, be prevented; and the provision making the notes a teriorate to the serious injury of honest trade legal tender, in a great measure at least, prevents it, by put- and honest labor. ting all citizens, in this respect, on the same level both of rights and duties.

2. This bill seems to contemplate no end which cannot be otherwise more certainly and beneficially attained. During the existing war, it is peculiarly the duty of the National Government to secure to the people a sound circulating medium. This duty has been, under existing circumstances, satisfactorily perform

The committee, doubtless, feel the necessity of accompanying this measure by legislation necessary to secure the highest credit as well as the largest currency of these notes. This security can be found, in my judgment, by proper provisions for funding them in interest bearing bonds, by wellguarded legislation authorizing banking associations with circulation based on the bonds in which the notes are funded, and by a judicious system of adequate taxation, which will not only create a demand for the notes, but-by secured, in part at least, by authorizing the issue of ing the prompt payment of interest-raise and sustain the credit of the bonds. Such legislation, it may be hoped, will divest the legal lender clause of the bill of injurious tendencies, and secure the earliest possible return to a sound currency of coin and promptly convertible notes. I beg leave to add that vigorous military operations and the unsparing retrenchment of all necessary expenses will also contribute essentially to this desirable end.

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United States notes, receivable for all Government dues except customs, and made a legal tender for all debts public and private, except interest on the public debt. The object of the bill submitted to me, namely, that of providing a small note currency during the present suspension, can be fully accomplished by authorizing the issue-as part of any new emission of United States notes made necessary by the circumstances of the country-of notes of a

During the pendency of this question, 1862, January 15-Mr. CORNING offered this similar character, but of less denomination joint resolution:

Resolved, dc., That in order to pay the ordinary expenses of the Government, the interest on the national loans, and have an ample sinking fund for the ultimate liquidation of the public debt, a tax shall be imposed, which shall, with the tariff on imports, secure an annual revenue of not less than $150,000,000.

Which was adopted—yeas 133, nays 6. The
NAYS were:

Messrs. Allen, Norton, Robinson, Shiel, Voorhees, Wood-6.
The following Democrats voted aye:

Messrs. Ancona, Joseph Baily, Charles J. Biddle, G. H.
Brnene, C. B. Calvert, G. T. Cobb, E. Corning, S. S. Cox, J.
W. Crisfield, Crittenden, Dunlap, J. E. English, Grider, E.
Haight, A. Harding, W. S. Holman, P. Johnson, J. Lazear,
W. E. Lehman, R. Mallory, J. W. Menzies, J. R. Morris,
W. P. Noble, J. W. Noell, R. H. Nugen, Odell, G. H. Pen-
di ton, N. Perry, J. S. Rollins, W. P. Sheffield, J. B. Steele,
W. G. Steele, C. L. Vallandigham, C. Vibbard, Wadsworth,
E. Ward, C. A. Wickliffe, G. C. Woodruff, II. B.Wright-38.
January 17-The Senate passed the resolu-
tion-yeas 30, nays 1, (Mr. Powell.)

SMALL BANK NOTES-VETO MESSAGE.

To the Senate of the United States:
The bill which has passed the House of Rep-
resentatives and the Senate, entitled "An act
to repeal that part of an act of Congress which

than five dollars. Such an issue would answer all the beneficial purposes of the bill; would save a considerable amount to the treasury, in interest; would greatly facilitate payments to soldiers and other creditors of small sums; and would furnish to the people a currency as safe as their own Government.

Entertaining these objections to the bill, I feel myself constrained to withhold from it my approval, and return it for the further consideration and action of Congress.

June 23, 1862.

ABRAHAM LINCOLN.

State Taxation.

First Session, Thirty-Eighth Congress. June 22-The loan bill before the House in Committee of the Whole, and the question being on the first section, authorizing a loan of $400,000,000, closing with this clause:

And all bonds, Treasury notes, and other obligations of the United States shall be exempt from taxation by or

under State or municipal authority.

Mr. HOLMAN moved to strike out the clause, which was agreed to-yeas 61, nays 44.

Mr. HOLMAN moved to insert at the end of the first section these words:

And that the bonds and other obligations issued under this act shall be subject to State and municipal taxation. Mr. NOBLE moved to amend the amendment by substituting the following:

And all bonds, Treasury notes, and other obligations of the United States, shall be subject to State and municipal taxation, on equal terms, the same as other property.

Which was rejected.

Mr. KERNAN moved this substitute for Mr. HOLMAN'S amendment:

And that the owners of the bonds and obligations issued under and by virtue of the provisions of this act shall be liable to State and municipal taxation upon the value thereof to the same extent as they are liable to such taxation upon any other securities or similar personal estate owned by them.

Mr. HOLMAN accepted the amendment, which was rejected-yeas 56, nays 59.

Juue 23-Pending the consideration of the loan bill in the House, being in Committee of the Whole,

Mr. POMEROY move this substitute for the second section of the oill:

And

SEC. 2. And be it furthe enacted, That the Secretary of the Treasury may issue, npon the credit of the United States, bonds of any denomination not less than $100, payable in lawful money, three years from the date thereof, and bearing interest not exceeding eight per cent. per annum, payable semi-annually in lawful money, and may receive at par therefor the lawful money of the United States, Treasury notes, certificates of indebtedness, or cer tificates of deposit issued under any act of Congress. the Secretary of the Treasury, in addition to the total amounts of bonds authorized by the first and second sections of this act, shall issue at par, in redemption of any outstanding notes, certificates of deposit, certificates of indebtedness of the United States, bonds similar to those herein before in this second section authorized, in denominations of not less than $100, or of like denominations able five years from date, with interest at six per cent., similar to these authorized by the first section, and paypayable semi-annually. And the Secretary of the Treas ury is further authorized to issue, in lieu of any bonds suance thereof, bonds similar to and in the denominations hereby authorized. All outstanding notes, other than United States notes, shall cease to be a legal tender in pay. ment of public or private indebtedness on and after the 1st day of October, 1864. And no notes, other than United States notes, shall hereafter be issued or reissued. Nor

heretofore authorized by law, and not now issued in pur

Mr. STEVENS offered this substitute for the shall the total amount of United States notes issued or to bill:

That the Secretary of the Treasury be, and he is hereby, authorized to borrow, from time to time, on the credit of the United States, $400,000,000, for the service of the fiscal year ending June 30, 1865, and to issue therefor, coupon or registered bonds of the United States, redeemable, at the pleasure of the Government, after any period not less than five nor more than thirty years, and, if deemed expedient, made payable at any period not more than forty years from date, payable in coin. And said bonds shall be of such denominations as the Secretary of the Treasury shall direct, not less than fifty dollars, and bear an annual interest not exceeding eight per cent., payable semi-annually, and the interest on all bonds heretofore issued, payable annually, may be paid semi-annually; and in lieu of such bond, authorized to be issued, the Secretary of the Treasury may issue bonds, bearing interest, payable semi-annually. And he may also issue in exchange for Treasury notes hereto fore issued bearing seven and three tenths per cent. interest, besides the six per cent. bonds heretofore authorized, like bonds of the denomination of $100 and of $50. And all bonds, Treasury notes, and other obligations of the United States shall be exempt from taxation by or under State or municipal authority.

Mr. HOLMAN moved to strike out the last sentence, which was rejected, on division-yeas 58, nays 73.

The amendment was agreed to in Committee, yeas 72, nays 51; but immediately after was rejected in the House-yeas 59, nays 81, as follows:

YEAS-Messrs. William J. Allen, Anderson, Baily, Augustus C. Baldwin, Baxter, Blair, Blow, Boyd, Brooks, Broomall, William G. Brown, Cole, Dawson, Denison, Donnelly, Eden, Eldridge, Farnsworth, Grider, Harding, Benjamin G. Harris, Higby, Holman, Hotchkiss, Asahel W. Hubbard, Ingersoll, Philip Johnson, William Johnson, Kalbfleisch, Knapp, Law, Loan, Long, Marcy, McAllister, McClurg, Mc Dowell, William H. Miller, Moorhead, James R. Morris, Morrison, Amos Myers, John O'Neill, Orth, Robinson, Ross, Scott, Shannon, John B. Steele, Stevens, Sweat, Thayer, Van Valkenburgh, Whaley, Wheeler, Chilton A. While, Joseph W. White, Wilson, Winfield-59.

NAYS-Messrs. Alley, Allison, Ames, Ancona, Arnold, Ashley, John D. Baldwin, Beaman, Blaine, Boutwell, Ambrose W. Clark, Freeman Clarke, Cobb, Creswell, Thomas T. Davis, Dawes, Dixon, Driggs, Eckley, Edgerton, Eliot, English, Fenton, Finck, Frank, Ganson, Garfield, Gooch, Griswold, liale, Herrick, Hooper, John H. Hubbard, Hulburd, Jenckes, Julian, Kelley, Francis W. Kellogg, Orlando Kellogg, Kernan, Knox, Longyear, Marvin, McBride, Sam uel F. Miller, Morrill, Daniel Morris, Leonard Myers, Noble, Norton, Odell, Charles O'Neill, Patterson, Pendleton, Perham, Pike, Pomeroy, Price, Pruyn, Radford, Samuel J. Randall, John H. Rice, Edward H. Rollins, James S. Rollins, Schenck, Scofield, Sloan, Smithers, Spalding, William G. Steele, Stiles, Strouse, Stuart, Upson, Ward, Ellihu B. Washburne, William B. Washburn, Webster, Williams, Benjamin Wood, Fernando Wood-81.

be issued ever exceed $400,000,000, and such additional sum, not exceeding $50,000.000, as may be temporarily required for the redemption of temporary loan.

Which was rejected-yeas 44, nays 81, as follows:

YEAS-Messrs. Ancona, Augustus C. Baldwin, Brooks, William G. Brown, Freeman Clarke, Coffroth, Cole, Cravens, Creswell, Dawes, Dawson, Edgerton, English, Farnsworth, Ganson, Griswold, Harrington, Herrick, Holman, Hotchkiss, Jenckes, Kalbfleisch, Kernan, Law, Mercy, Samuel F. Miller, James R. Morris, Morrison, Nelson, Odell, Pike, Pomeroy, Price, Pruyn, James S. Rollins, Ross, Scofield, John B. Steele, Thayer, Van Valkenburgh, William B. Washburn, Whaley, Wheeler, Wilson-44.

NAYS-Messrs. William J. Allen, Alley, Allison, Ames, Arnold, Ashley, Baily, John D. Baldwin, Baxter, Beaman, Blair, Blow, Boutwell, Boyd, Broomall, James S. Brown, Ambrose W. Clark, Cobb, Thomas T. Davis, Denison, Dixon, Donnelly, Driggs, Eden, Eldridge, Eliot, Frank, Gooch, Hale, Harding, Benjamin G. Harris, Hooper, Asahel W. Hubbard, John H. Hubbard, Hulburd, Philip Johnson, Julian, Kelley, Francis W. Kellogg, Orlando Kellogg, Knapp, Knox, Loan, Long, Longyear, Me Allister, McBride, McClurg, Wm. H. Miller, Moorhead, Morrill, Daniel Morris, Amos Myers, Leonard Myers, Noble, Norton, Charles O'Neill, John O'Neill, Orth, Perlmm, John II. Rice, E. II. Rollins, Schenck, Shannon, Sloan, Smithers, Spalding, Wm. G. Steele, Stevens, Webster, Williams, Windom, Winfield, Benjamin Wood, Fer Stiles, Strouse, Stuart, Tracy, Upson, Ellihu B. Washburne, nando Wood-81.

The bill then passed without the yeas and nays being ordered.

June 27-The bill was slightly amended in the Senate, and passed without a division.

STATE TAXATION-AGAIN.

June 28-On concurring in Senate amendments, Mr. HOLMAN moved to add this proviso to one of them:

of the States to tax the bonds, notes, and other obligations Provided, That nothing in this act shall impair the right issued under this act.

Which was rejected-yeas 71, nays 77, as follows:

YEAS-Messrs. William J. Allen, Ancona, Bliss, Brooks, James S. Bown, Chanler, Coffroth, Cox, Cravens, Dawes, Dawson, Denison, Eden, Edgerton, Eldridge, English, Finck, Ginso Grider, Griswold, Harding, Harrington, Charles M. Hurris. Herrick, Holman, Hotchkiss, Hutchins, Philip Johnson, William Johnson, Kalbfleisch, Kernan, Knapp, Law, Lazear, Le Blond, Long, Mallory, Marcy, Mc Dowell, McKinney, Middleton, Samuel F. Miller, William H. Miller, James R. Morris, Morrison, Noble, John O'Neill, Pen dleton, Perry, Pomeroy, Pruyn, Radford, Samuel J. Ran dall, Robinson. Ross, John B. Steele, William G. Steele, Stiles, Strouse, Stuart, Sweat, Thomas, Tracy, Van Valken

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