Page images
PDF
EPUB
[ocr errors][merged small][merged small][merged small][merged small]

The bill (H. R. No. 54) to provide increased revenue from imports, to pay interest on the public debt, and for other purposes, was the next bill on the Calendar; and the Senate, as in Committee of the Whole, proceeded to consider it.

The PRESIDENT pro tempore. The Committee on Finance reported an amendment in the form of a substitute for the entire bill. The question is on that amendment; and on that question the Senator from Rhode Island is entitled to the floor.

Mr. SIMMONS. I think the Chair is a little mistaken about that; but I hope the amendments proposed by the committee to the first draft of the bill will be read.

Mr. SUMNER. Have they been printed? I have not seen them yet.

Mr. SIMMONS. They have been printed, and can be read from the Clerk's desk, and, undoubtedly, we can understand them as they are read.

The Secretary proceeded to read the amendment of the committee, which was, to strike out all after the enacting clause of the bill, and insert a substitute.

Mr. SIMMONS. I ask that the question be taken by sections.

The PRESIDENT pro tempore. That course will be pursued.

The first section of the substitute was read, as follows:

That, from and after the passage of this act, in lieu of the duties heretofore imposed by law on the articles herein enumerated, and on such as may now be exempt from duty,there shall be levied, collected, and paid, on the goods, wares, and merchandise herein enumerated and provided for, imported from foreign countries, the following duties and rates of duty, that is to say: On raw sugar, commonly called Muscovado or brown sugar, and on sirup of sugar or of sugar cane, and on concentrated molasses, or on concen trated melado, and on white and clayed sugar, when advanced beyond the raw state by claying or other process, and not yet refined, 2 cents per pound; on refined sugar, whether loaf, lump, or pulverized, 4 cents per pound; on sugars after being refined, when they are tinctured, colored, or in anywise adulterated, and on sugar candy, 6 cents per pound; on molasses, 5 cents per gallon; on tea, 15 cents per pound; on coffee, 4 cents per pound.

The section was agreed to.

The second section was read and agreed to, as follows:

SEC. 2. And be it further enacted, That, in addition to the duties now imposed by law on goods, wares, and merchandise not enumerated in the foregoing section, and on all goods not herein otherwise provided for, hereafter imported from foreign countries, there shall be levied, coljected, and paid, a duty of 10 per centum ad valorem, to include all merchandise subject to or exempt from duty by former laws: Provided, however, That in all cases where the existing specific or other duties, or both combined, on any article, together with the addition of 10 per centum ad valorem, shall amount to a duty of more than 50 per centum on the value thereof, the 10 per centum herein imposed shall not be added, except upon the articles of brandy and spirits distilled from grain or other materials, or other spirituous beverages. Indigo and ground madder shall be admitted to entry upon the payment of a duty of 5 per cen tum ad valorem; and that diamonds and other precious stones, when set in gold, silver, or other metal; and wool unmanufactured, the value of which, at the place of exportation, shall be 18 cents per pound or under, shall be subject to a duty of 74 per centum ad valorem. Steel of all kinds and copper ore shall pay an additional duty of 5 per centum ad valorem: And provided further, That the President of the United States be, and lie is hereby, authorized, by proclamation, to suspend the operation of the provisions of this section of this act at such time and whenever, in his judgment, the condition of the Treasury and the public interest will justify it.

Section three was read and agreed to, as follows: SEC. 3. And be it further enacted, That the act entitled "An act to provide for the payment of outstanding Treasury notes, to authorize a loan, to regulate and fix the duties on imports, and for other purposes," approved the 2d day of March, 1861, be, and the same is hereby, altered and correeted as follows, that is to say: In section six, clause the first: The specific duties therein imposed on brandy, spirits distilled from grain or other materials, and other spirituous beverages, shall be imposed and collected upon all of said liquors, if of first proof or of less strength than first proof; and when of greater strength than first proof, as in said act provided. In section seven, clause fifth: The words "on screws, washed or plated, and all other screws, of iron or any other metal," shall be stricken out, and the words "on screws, of any other metal than iron," shall be inserted. In section thirteen: The third clause shall be stricken out, and in lieu thereof the following words shall be inserted: "on all delaines known as cashmere, muslin, or barege delaines, composed wholly or in part of worsted, gray or uncolored, and on all gray goods of similar description, 25 per centum ad valorem; on bunting, aud on all stained, colored, or printed goods of the above description, and on all other manufactures made wholly or in part of worsted, not otherwise provided for, 30 per centuin ad valorem." In clause second, after the word "manufacturer," the words" except hosiery" shall be inserted. In section fourteen, clause first, insert the words "ad valorem" after the words "10 per centum." In section fifteen, the words "on jute goods, 15 per centum," shall be stricken out, and the words "on jute yarns, 10 per centum," inserted. In same section, before the word "yarns," in said section, the word "hemp" shall be inserted; also, after the word "shirting," the words "of flax or hemp" shall be inserted. In section nineteen, the words "compositions of glass or paste not set, intended for use by jewelers," shall be stricken out. In section twenty-two, the words " compositions of glass or paste, when set," shall be stricken out. Section four was read and agreed to, as follows: SEC. 4. And be it further enacted, That, from and after the day this act takes effect, the importation of the articles hereinafter mentioned and embraced in this section shall be exempted from duty-that is to say: All books, maps, charts, mathematical and nautical instruments, philosophical apparatus, and all other articles whatever imported for the use of the United States. Articles in a crude state, used in dyeing or tanning, not otherwise provided for, berries, nuts, flowers, plants, and vegetables used exclusively in dyeing or composing dyes; but no article shall be classed as such that has undergone any manufacture. Bismuth, bitter apples, bones burnt, bone dust, Brazil wood, braziletto, and all other dye-woods in sticks. Books, maps, and charts, imported by authority of the Joint Library Committee of Congress for the use of the Library of Congress: Provided, That if in any case a contract shall have been made with any bookseller, importer, or other person for books, maps, or charts, in which contract the bookseller, importer, or other person aforesaid, shall have paid the duty, or included the duty in said contract, in such case the duty shall not be remitted. Bullion, gold and silver; coins, gold, silver, and copper; copper, when imported for the United States Mint; fish, fresh caught, for daily consumption; goods, wares, and merchandise, the growth, production, or manufacture of the United States, exported to a foreign country, and brought back to the United States in the same condition as when exported, upon which no draw back or bounty has been allowed: Provided, That all regulations to ascertain the identity thereof prescribed by existing laws, or which may be prescribed by the Secretary of the Treasury, shall be complied with. Household effects, old, and in use, of persons or families from foreign countries, if used abroad by them, and not intended for any other person or persons, or for sale; oil, spermaceti, whale, and other fish, of American fisheries, and all other articles the produce of such fisheries; paintings and statuary, the production of American artists residing abroad: Provided, The same are imported by the artists, or on their account, or by other persons, in good faith, as objects of taste, and not as merchandise, and on presentation on the entry of the declaration of the artist in writing, signed by him, and certified by a consul of the United States, that the said paintings or statuary were produced by hini.

The fifth section was read and agreed to, as follows:

SEO. 5. And be it further enacted, That all goods remaining in public store or warehouse at the time this act takes effect inay be withdrawn therefrom and entered for consumption upon payment of the duties legally imposed thereon at the time they were deposited, and all goods deposited in public store or bonded warehouse after this act takes effect and goes into operation, if designed for consumption in the United States, must be withdrawn therefrom, or the duties thereon paid in three months after the same are deposited, and goods designed for exportation and consumption in foreign countries may be withdrawn by the owner at any time before the expiration of five years after the same are deposited, such goods, if not withdrawn in five years, to be regarded as abandoned to the Government, and sold under such regulations as the Secretary of the Treasury may prescribe, and the proceeds paid into the Treasury: Provided, That merchandise upon which the owner may have neglected to pay duties within three months from the time of its deposit may be withdrawn and entered for consumption at any time within two years of the time of its deposit, upon the payment of the legal duties, with an addition of 25 per centuin thereto: Provided, also, That merchandise upon which duties have been paid, if exported to a foreign country, shall be entitled to return duties, proper evidence of such merchandise having been landed abroad to be furnished to the collector by the importer, 1 per centum of said duties to be retained by the Government: And provided, further, That coffee imported from beyond the Cape of Good Hope, which shall be actually on shipboard and bound for the United States before the 1st day of September next, shall be exempt from the duties imposed by this act.

The sixth section was read, as follows: SEC. 6. And be it further enacted, That there shall be allowed on all articles wholly manufactured of materials imported on which duties have been paid, when exported, a drawback equal in amount to the duty paid on such r ticle and no more, to be ascertained under such regulations as shall be prescribed by the Secretary of the Treasury: Provided, That 10 per centum on the amount of all drawbacks allowed shall be retained by the officers paying such drawback, respectively: And, further, That on refined sugar, when exported, there shall be allowed a drawback of cents per pound, to be ascertained under the regulations and limitations hercin provided.

Mr. SIMMONS. I move to strike out the latter clause, in reference to refined sugar. It is embraced in the former part of the section.

The amendment was adopted; and the section, as amended, was agreed to.

The seventh and last section was read, as follows:

SEC. 7. And be it further enacted, That this act shall take effet fifteen days after its passage, and all acts and parts of acts repugnant thereto are hereby repealed: Provided, That the existing laws shall extend to, and be in force for the collection of the duties imposed by this act for the pros ecution and punishment of all offenses, and for the recov ery, collection, distribution, and remission of all fines, pen alties, and forfeitures, as fully and effectually as if every regulation, penalty, forfeiture, provision, clause, matter and thing, to that effect in the existing laws contained, had been inserted and reenacted by this act.

Mr. SUMNER. I believe it is in order to move an amendment to the proposition which is now pending.

The PRESIDENT pro tempore. An amendment to the section is in order.

Mr.SUMNER. I move to strike out “fifteen,” in the second line, and insert "thirty;" so that it will read, "this act shall take effect thirty days after its passage." My object in moving this amendment is to provide for the merchandise that may be actually at this moment water-borne; that may have already been ordered in view of the existing tariff; so that it shall not be compelled to pay increased duties under this tariff. It will allow a larger margin for the change of orders; and I believe the chairman of the committee will agree with me in the expediency of this change. I believe I have his consent.

Mr. SIMMONS. If the Senator from Massachusetts addresses himself to me, I am not the chairman of the committee, but I have no objection to that amendment, and shall make none. The committee thought fifteen or twenty days were sufficient time to countermand any orders that had been given in Europe, but I am willing it should be extended to fifteen days longer.

Mr. SUMNER. It seems to me, if we really wish to give them the opportunity, we ought to do it completely, and enable it to be done in a practical manner. I have understood from merchants that there will be serious derangements if this bill should go into effect in fifteen days. The amendment was agreed to.

'Mr. SAULSBURY. I move to amend the first section, in line nineteen, by striking out the words, "on coffee four cents a pound." This is an article which enters into the general consumption of the country by all classes. We are raising funds to pay the expenses of the war. In my judgment, the politicians of the country and the property holders of the country should pay the expenses of it, and such a tax as four cents a pound upon an article so generally in use by all classes of the community ought not to be imposed. That is my object in making the motion.

The PRESIDENT pro tempore. The Chair will suggest to the Senator from Delaware that the amendment he proposes to amend having been agreed to, it was not now in order to amend it; but it will be when the bill shall be reported from the Committee to the Senate.

Mr. SAULSBURY. I beg pardon. I understood the Chair to say amendments were now in order.

The PRESIDENT pro tempore. The question is on the section last read, as amended on the motion of the Senator from Massachusetts.

Mr. SIMMONS. I will make a motion to reconsider that amendment in the Senate. I suppose it can be done when the bill is reported to the Senate. I mean the amendment inserting thirty days instead of fifteen. The object of limiting the time is simply that there shall be no goods orderd and put on shipboard after this bill passes, to come in under the old tariff, and I know thirty days is enough to make two voyages across the Atlantic. The section as amended was agreed to.

The PRESIDENT pro tempore. The bill is still open to amendment.

mittee of Elections to report the following resolution:

Mr. SIMMONS. I now move that the bill be Resolved, That mileage and compensation to and includpostponed until to-morrow, and made the special-ing the 25th July, instant, be allowed to J. Sterling Morton, order for half past twelve o'clock. I do this for contesting the seat of Hon. SAMUEL G. DAILY, as Delegate from the Territory of Nebraska; and that the same be paid the purpose of proposing certain other amendby the Clerk out of the contingent fund of the House. ments, to give additional strength to the Treasury; but I am not now prepared to offer them. I move the previous question. The motion was agreed to.

[blocks in formation]

The previous question was seconded, and the main question ordered.

Mr. DAWES. I ask the unanimous consent of the House to make a brief statement. No objection was made.

Mr. DAWES. This gentleman came here with a certificate from the Governor, precisely like our own, without any intimation from anybody that he was not entitled to take the seat. It having been decided by the House that he is not entitled to take the seat, I think it is but just that he should receive the compensation and mileage to which he would have been entitled had his certificate been approved by the House. I hope, therefore, the House will adopt the resolution. It is in accordance with precedent.

Mr. FRANK. How much does the compensation amount to?

Mr. DAWES. I have not ascertained how much it amounts to. The mileage is that which he would have been entitled to if the certificate had been accepted by the House. He came here

Mr. WILSON submitted the following report: upon the faith of the certificate. There has been

The committee of conference on the disagreeing votes of the two Houses on the bill (S. No. 2) to increase the present military establishment of the United States, having met, after a full and free conference, have agreed to recommend and do recommend to their respective Ilouses as follows:

That the House of Representatives recede from its amendments to the bill of the Senate, except section eight, and agree thereto with the following amendments:

Page 4, section six, line eight, after the word "reduced," strike out as follows: " in such manner and to such extent as Congress may direct;" and insert in lien thereof, "to a number not exceeding twenty-five thousand men, unless otherwise ordered by Congress."

Page 5, at the end of section seven, add the following: "Provided, That all the officers of the regular Army who have been or may be attached or assigned to duty for service in any other regiment or corps, shall resume their positions in the regular Army, and shall be entitled to the same rank, promotion, and emoluments, as if they had continued to serve in their own regiments or corps. ',

That the Senate recede from its disagreement to the eighth section of the amendment of the House, and agree thereto.

HENRY WILSON,

J. H. LANE,
HENRY M. RICE.

Managers on the part of the Senate.

FRANCIS P. BLAIR,
R. MALLORY,

A. B. OLIN,

Managers on the part of the House.

The report was concurred in. On motion of Mr. FESSENDEN, the Senate adjourned.

HOUSE OF REPRESENTATIVES.
FRIDAY, July 26, 1861.

The House met at twelve o'clock, m. Prayer by Rev. Mr. KENNADY, of Philadelphia. The Journal of yesterday was read and approved.

NAVAL SIGNALS.

The SPEAKER, by unanimous consent, laid before the House a communication from the Secretary of the Navy in relation to naval signals; which was referred to the Committee on Naval Affairs, and ordered to be printed.

PRINTING OF A REPORT.

Mr. DAWES. I move to reconsider the vote by which the House refused yesterday to order the printing of the report and resolution of the Committee of Elections in the Nebraska case.

The motion to reconsider was agreed to. The question recurred upon the motion to print. Mr. McCLERNAND. I would ask the gentleman from Massachusetts whether that embraces Mr. Morton's memorial?

no evidence before the committee that, in whatever frauds have taken place which invalidate it, he had any hand or participation. It is therefore but right that, having come here to claim a seat which the Governor by his certificate had declared he was entitled to, he should have his compensation.

The resolution was adopted.

Mr. DAWES moved to reconsider the vote by which the resolution was adopted; and also moved to lay the motion to reconsider upon the table. The latter motion was agreed to.

OREGON CONTESTED ELECTION. Mr. DAWES, from the Committee of Elections, submitted a report on the memorial of George K. Shiel, claiming the scat now occupied by Hon.. ANDREW J. THAYER, as a Representative from the State of Oregon.

The report concludes with the following resolution:

Resolved, That Hon. A. J. THAYER is not entitled to hold the seat now occupied by him in this House as a Representative from the State of Oregon.

Resolved, That George K. Shiel has been duly elected as a Representative from the State of Oregon to the ThirtySeventh Congress, and is entitled to a seat in this House as such.

The report was ordered to be printed.

ACT OF CONFISCATION.

Mr. BINGHAM. I am instructed by the ComSenate bill No. 25, to confiscate property used mittee on the Judiciary to ask the House that for insurrectionary purposes, referred to that committee, be ordered to be printed. It was so ordered.

NAVY-YARD SUPERINTENDENT. Mr. SEDGWICK, from the Committee on Naval Affairs, reported a bill to amend an act entitled "An act supplementary to an act entitled 'An act providing for a naval peace establishment and for other purposes,' passed March 27, 1804;

,,,

which was read a first and second time.

The bill amends the act in question by inserting after the word " "where the same captain, first occurs, the words "or commanders," so as to authorize the President to select a superintendent of the navy-yard of Washington from the captains or commanders of the Navy of the United States.

Mr. HOLMAN. I desire to inquire whether Mr. DAWES. That has been already printed. this bill enlarges the number of officers to be The motion to print was agreed to. appointed?

JAMES POOLE.

Mr. JOHNSON, by unanimous consent, introduced a bill for the relief of James Poole; which was read a first and second time, and referred to the Committee of Claims.

The SPEAKER then proceeded, as the regular order of business, to call the committees for reports.

PAY OF A CONTESTANT.

Mr. DAWES. I am instructed by the Com

Mr. SEDGWICK. It does not. It merely authorizes the President to select from commanders as well as from captains.

The bill was ordered to be engrossed and read a third time; and being engrossed, it was accordingly read the third time, and passed.

Mr.SEDGWICK moved to reconsider the vote by which the bill was passed; and also moved to lay the motion to reconsider on the table. The latter motion was agreed to.

The States were called for resolutions and for

bills of which previous notice was given. None were introduced, and the Speaker stated that there was no business before the House.

QUESTION OF ADJOURNMENT.

Mr. VANDEVER. I move that the House do now adjourn.

Mr. FENTON. I move that when the House adjourns, it adjourn to meet on Monday next.

Mr. COLFAX. That motion is not debatable, but I desire the indulgence of the House that I may inquire of the Committee of Ways and Means what time they expect we can adjourn sine die. If we are only going to have a session of half an hour in three days, I should like to know if we cannot get away?

Mr. STEVENS. I have no opinion as to the time when we can adjourn. That, I think, depends on the Senate. The Committee of Ways and Means have but a single bill--a bill which they deem absolutely essential to maintain the Government. That bill is in the Committee of the Whole on the state of the Union. Without it the Treasury will be bankrupt in twenty days; but from ... the indications of the friends of the Administration here, for the past day or two, we are not encouraged to believe that the Administration will be sustained. If that is the case, the sooner we know it the better, that we may go home. I intended to move to go into the Committee of the Whole on the state of the Union immediately, for the purpose of considering the tax bill. The House will be able to determine, by its course on this bill, whether it is worth while for us to stay here any longer, or whether we might not as well go home and let the Government take care of itself. I am, therefore, unable to say what time we can adjourn, for that depends on the action of the House with reference to the tax bill.

Mr. WASHBURNE. Will the gentleman permit me to ask him a question with reference to business before the committees of conference? Mr. STEVENS. Certainly.

Mr. WASHBURNE. I desire to ask the chairman of the Committee of Ways and Means if there is no business hanging between the two Houses before committees of conference? If so, I think the House should remain in session till that business is disposed of, and till we get rid of all the business with the exception of this tax bill, as it is called, before we adjourn. I think it very improper that the House should adjourn at this time till Monday. I see no necessity for it.

Mr. STEVENS. I am not aware of anything that is pending between the two Houses from our committee. Our committee of conference on the large appropriation bill reported yesterday, and the report was confirmed. There was a disagreement about some Senate amendments, but the committees of conference have not yet been appointed. I desire to know from the chairman of the Committee on Commerce whether that committee intends to report back, as I think it its duty to do, with a recommendation that it do pass, or that it be negatived, a bill which I introduced and had referred to it?

The SPEAKER. The Chair would say to the gentleman from Pennsylvania that all the committees of conference ordered by the House have been appointed.

Mr. STEVENS. I had hoped that the gentleman would report back that bill. If reported with a negative recommendation I intend to take the sense of the House upon it. I mean the bill repealing all laws that created ports of entry in the rebel States. I do not consider that the bill which we have already passed at all meets the difficulty. I hope the gentleman will report back the bill, and if the committee is opposed to it, let it say so, and let us take the sense of the House upon it.

Mr. WASHBURNE. In reply to the chairman of the Committee of Ways and Means, I will state that the Committee on Commerce are considering the bill to which he refers. What report they will make upon it I am unable to say. Whether they will make any report I am unable to say. Members of the committee have been in consultation on the subject with members of the Administration. It is a subject full of embarrassment, and there has been no indication made as yet in the committee, as to what action they will take. The question was taken on Mr. FENTON'S motion, and it was not agreed to.

The question recurring on Mr. VANDEVER'S motion, Mr. VANDEVER withdrew it.

[blocks in formation]

Mr. WRIGHT. I move to amend by striking out "Tuesday" and inserting "Monday." Mr. COX. I accept the amendment. Mr. McCLERNAND. I suppose it is not in order to debate that resolution at this time. The SPEAKER. It is not debatable.

Mr. McCLERNAND. We must make some provision for revenue before we adjourn. Otherwise the credit of the Government fails.

Mr. WRIGHT. It is already made. Mr. McCLERNAND. No, sir. I move that the resolution be laid on the table.

The motion was agreed to.

PRINTING ACTS.

Mr. McCLERNAND, by unanimous consent, offered the following resolution; which was read, considered, and referred to the Committee on Printing:

Resolved, That five thousand extra copies of the following acts be printed for the use of members of the House: An act to promote the efficiency of the Army; An act to authorize the employment of volunteers to aid in supportiug and defending the Government; An act providing for the better organization of the military establishment; An act to increase the efficiency of the volunteer forces of the United States.

ADDITIONAL REVENUE BILL.

Mr. STEVENS. I move that the rules be suspended, and that the House resolve itself into the Committee of the Whole on the state of the Union. The motion was agreed to.

The rules were accordingly suspended; and the House resolved itself into the Committee of the Whole on the state of the Union, (Mr. COLFAX in the chair,) and proceeded to the consideration, as a special order, of House bill No. 71, to provide additional revenues for defraying the expenses of the Government and maintaining the public credit, by the assessment and collection of a direct tax and internal duties.

The Clerk proceeded to read the bill by sections for amendment, commencing at the sixth section, where the reading was left off yesterday.

Mr. SPAULDING. I move to amend the sixth section by striking out the word "one," in

the seventh line, and inserting the word "two;" so that the valuation shall be made at the rate the property was worth on 1st January, 1862.

Mr. Chairman, I may as well proceed to submit the remarks which I desire to make to the committee at this time, and on this amendment, as at any other time. In the first place, I desire to submit statistical tables furnished by the Department, showing the value of real and personal estate, the number of inhabitants, and the basis on which this apportionment is made, in the States. The tables are as follows:

Table showing the Federal population, and the assessed value of real and personal property of the several States of the Union. Census 1860.

[blocks in formation]
[merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][ocr errors][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small]

Mr. SPAULDING. I desire, Mr. Chairman, to state some facts with reference to the condition of the Treasury. In doing so, I must go back some eight months, in order to show more clearly what the necessities of the Treasury at the present time are. When we met at the last session of Congress, in December last, the Treasury was empty-bankrupt. There was no money to pay the public creditors, who were then pressing for payment. There was not money enough even to pay members of Congress. The first duty that devolved on the Committee of Ways and Means at that session was to provide the means to carry on the Government. On the 17th of December an act was passed authorizing a loan of $10,000,000, at six per cent., in Treasury notes, with authority to issue them at as low a denomination as fifty dollars, and bearing such rate of interest as the Secretary of the Treasury should find it necessary to allow, after advertising for ten days. The Secretary of the Treasury advertised immediately; and the best bids that he could get, which he deemed it advisable to accept, were at twelve per cent. interest. Some of the bids ranged higher, and some lower than that amount. A loan was then made at twelve per cent. interest for the purpose of replenishing the Treasury for its immediate and present wants. Subsequently the balance of this loan was taken at a rate of about nine per cent. interest per annum. On the 8th of February $25,000,000 more was authorized by the Government to be negotiated; and on the 2d of March a further loan of $10,000,000 more was authorized by the tariff bill; and a provision was inserted authorizing the Secretary to issue any portion of the $35,000,000 in sums as low as fifty dollars, at a rate not exceeding six per cent. interest. that during the whole time since the adjournment of the last Congress, the Secretary of the Treas ury has had the power, and has offered to the public, Treasury notes, bearing six per cent. interest, in sums as low as fifty dollars.

So

Now, sir, the funded debt of the Government on the 1st of July, including the bonds issued at various periods, of various denominations, bearing various rates of interest, amounted in the aggregate, to $70,000,000, or thereabouts. The Treasury notes which were at that time outstanding amounted in all to about $20,600,000. But since that time the Secretary of the Treasury has borrowed upon Treasury notes, in various sums, at six per cent., at sixty days, that being the longest period which he was able to borrow, to meet the present demands of the Treasury. The Treasurer is in the market to-day with his six per cent. Treasury notes, without being able to get them taken. The six per cent. coupon bonds are now sold in New York at eighty-eight or eighty-eight and a half cents on the dollar-a discount of twelve per cent., or thereabouts. The twelve per cent. Treasury notes of December last are held in the New York market at about one hundred and two -showing that the Government is at this moment unable to negotiate any of the loans that have been authorized by Congress, except at ruinous rates of discount.

[Here the hammer fell.]

By unanimous consent, Mr. SPAULDING was permitted to proceed with his remarks.

Mr. SPAULDING. The Treasury notes that have been issued at various periods upon the several advertisements, have been reported by the Secretary of the Treasury at the commencement of the present session of Congress, and his report is now upon our tables. It shows that at the last advertising of coupon bonds, the bonds having twenty years to run, could only be sold at eighty-five, and some of the bids were as low as eighty-two. Now this ought not to be. It is true that the Treasury became bankrupt last year under the administration and perfidy of Secretary Cobb. But, sir, I say to the House that instead of allowing the Secretary of the Treasury to go into the market with Treasury notes bearing this ruinous rate of interest, we ought to levy a tax sufficient to give credit and confidence on the part of capitalists, so that we can borrow the money necessary to carry on the Government. We ought, at the last session of Congress, instead of shirking the responsibility, to have levied a tax upon tea, coffee, and sugar. We ought to have faced the music then, and brought up the credit of the Government by taxing those articles. We are here now reversing our steps, and proceeding to do what we ought to have done then. There is

ample power in the Constitution to levy and collect imposts, taxes, and excises. We have ample power to levy direct taxes, ample power to levy indirect taxes, ample power to levy duties on foreign importations, and within the States. And now, the great question is, shall the Government be sustained by the Representatives of the people coming up to the work and imposing the necessary taxes for its support?

The tables which I have given to the reporters will show that the real and personal property of this country is amply sufficient; that the basis is great enough. And the question again comes back with double force upon us at this time, when we are entering upon a war, and a war that we must sustain at all hazards, at the peril of the existence of the Government itself, and which I will sustain by my ability and my vote to the extent of levying taxes upon every species of property that I possess. And, sir, I believe my constituents will go to that extent. Now, sir, the recent statement of the Secretary of the Treasury exhibits the fact that there is no money in the Treasury to carry on this war. The Secretary of the Treasury is in the market at this time for money, under the law which we have just passed; and it becomes a grave question whether we will venture to adjourn without supplying the Treasury with a basis on which the credit of the Government can be sustained. Unless we do this, I can assure this House that the Treasury will soon be bankrupt, your soldiers without pay, and the war cannot go on. You cannot borrow money in the market to-day except at ruinous rates of interest. What then will bring up the credit of the Government? Nothing but the Representatives of the people coming up boldly and meeting the question by voting the ways and means, which they have already done, so far as relates to the men; and the men are ready with zeal to carry on this war. The only remaining thing, then, to be done is, to vote sufficient money to sustain the credit of the Government.

Now, sir, I am not prepared to say that this bill which is in the hands of the members of this committee, and which comes from the Committee of Ways and Means, is the best that can be devised. It was prepared at the Treasury Department, it was considered in committee, and it is now here. I do not pretend to say it is perfect, for it had to be prepared hastily; and I never yet saw a perfectly just and equitable tax bill.

MESSAGE FROM THE SENATE.

The committee here informally rose, and the Speaker having resumed the chair, a message was received from the Senate, by Mr. PATTON, one of their clerks, informing the House that the President of the United States had notified the Senate that he has approved and signed a bill for the relief of the widows and orphans of the officers, seamen, and marines of the United States sloopof-war Levant, and for other purposes; and an act to provide for the temporary increase of the Navy."

ENROLLED BILL.

Mr. GRANGER, from the Committee on Enrolled Bills, reported that the committee had examined and found truly enrolled, an act making additional appropriations for the legislative, executive, and judicial expenses of the Government for the year ending June 30, 1862, and appropriations for arrearages for the fiscal year ending June 30, 1861; when the Speaker signed the same. The committee again resumed its session.

ADDITIONAL REVENUE-AGAIN. Mr. SPAULDING. Mr. Chairman, those of the committee who have read the report of the Secretary of the Treasury made to this Congress at the commencement of its session, will be prepared to understand distinctly the present condition of the Treasury. He informs us in that report, that we shall not be able to realize from the old tariff and the new tariff enough-by about twenty-five or thirty million dollars-to carry on the Government for the current year. This.must be bridged over in some way. You must raise by internal duties, or you must raise by direct taxation, a sum sufficient to meet the present emergency. I hold that there is one rule which must be complied with, beyond a doubt. We must raise each year money enough to meet the current expenses of the Government, and to pay interest

on the money borrowed for the extraordinary expenses of the war. Unless this is done, the confidence in the credit of the Government will be destroyed.

Mr. LOVEJOY. Will the gentleman permit me to interrupt him a moment?

Mr. SPAULDING. Certainly.

Mr. LOVEJOY. Inasmuch as there is no difference of opinion whatever in regard to the necessity of raising this money, and as there is no question in regard to the willingness of the House to raise it, I want the Committee of Ways and Means to show us that this is the best and the only way. If it is, then we are prepared to vote on it. Yet, while we are prepared to vote this tax, I have not heard a word from the Committee of Ways and Means, or from the gentleman from New York, as to whether this is the best and only way. Let us know something on that point.

Mr. SPAULDING. On that point, Mr. Chairman, I will say, that if this bill is not perfect, we are in the Committee of the Whole on the state of the Union, considering it section by section for amendments, and now is the time to perfect it. If the gentleman has any views to submit, let him submit them in writing, as amendments to the bill, and let the House decide upon them. That is the way to get a perfect system.

Now, as to a further basis of taxation. I have no objection sir, to include all the personal property that can be reached. All I ask is that we shall not shrink from our just responsibility, and undertake, by whatever shift, to shuffle this bill off. Let us meet the question boldly, and impose a tax upon real and personal property enough to satisfy the demands of the time and the exigency of the country. This is our duty! The bill, as it was drawn at the Treasury Department, imposes a tax in two ways: first, upon real estate, as houses, lots, and slaves; and in the second place, it fixes an excise duty upon various articles-a tax upon distilled spirits, watches, carriages, as well as a stamp duty upon bank notes. If that be not large enough, then, when we reach the several sections, let us enlarge them. Let us do that and go on with the bill. Let us go through with it, and put it upon trial; and do not let us, by any shuffling, endeavor to shift the responsibility from ourselves. We shall be held responsible by our constituents and by the country, Mr. Chairman-by the people-whether we provide the means or not to put down this wicked rebellion.

Let me repeat, sir, now, now is the time to perfect the bill, as we consider it section by section for amendment. Add to it a further basis of taxation, if you so desire, and I will not object. I shall be glad to cooperate with any of the gentlemen who cavil at this bill, to make it as perfect as we can, and then to pass it.

Mr. Chairman, we have gone on at this session and boldly met the question. We have given to the Government all the power necessary to bring into the field an army large enough to suppress speedily and effectually the existing rebellion. We have done everything on our part that we could do, in the way of legislation, to hold up the hands of the Government and to carry on this war, except only this one measure. We cannot adjourn, sir, without doing our whole duty in this respect. The people are zealous in this cause. I am not afraid that our They will sustain us. constituents will not stand behind us, and push forward every measure for the suppression of this rebellion. They will sustain us in raising all the money necessary to support this war. I only ask that we should not evade our responsibility. I have no feeling in the matter other than to subserve the public good. It is a duty from which we cannot, and from which we ought not to escape, if we could. As the reading of the bill progresses, let us perfect it; let it be reported to the House, and then sent to the Senate. I understand that that body has suggestions of its own to submit. Then, after a conference between the two Houses on the disagreeing votes, we shall be able to get a tolerably perfect bill. I do not believe at this session that we can get an entirely perfect bill, but we can approximate perfection. At the next session we can, by other legislation, still further perfect it.

I wish to say a word in conclusion. I believe that we are now entering upon a system of taxation which is to last for years. We have already

[ocr errors]

increased the expenses of the Government this year up to between three and four hundred million dollars. Every soldier brought into the field will cost $1,000 a year, if we take into consideration the cavalry, artillery, transportation, and all the appurtenances attending our Army. You cannot carry this war on upon any picayune system. The Administration is pushing on the war with vigor. Eighty regiments have been accepted this week. The credit of the Government will have to be sustained; and that has to be done by the Representatives of the people showing a determination to tax the property of the country to that end, until the flag of our country floats in triumph over every foot of American soil.

Mr. DIVEN. Mr. Chairman, I have examined this bill during the last two days with considerable care, and I must say, after that examination, that I regard it, in the shape in which it came from the Committee of Ways and Means, as the most perfect bill that could be presented to the House for the purpose of answering the exact point we have in view. What is necessary to sustain the credit of the country? Why, to secure to the lender a certainty of a return for the money loaned, together with the certainty of the regular payment of interest upon it. What will afford to the lender the best security? Why, sir, a lien upon the real property of the country. Lenders lend money at a lower rate of interest upon real property, than upon any other kind. In this bill we propose to pledge the real estate of the country for the security of the loans of the Government.

I admit that it is not just that real estate should bear all of the tax. I do not contend, sir, that the tax levied is entirely equal. I defy the ingenuity of man to invent a revenue bill that will operate equally. No tariff has ever been passed that operated equally upon all. No property tax was ever adjusted so as to operate equally. None ever can be so adjusted. This tax has been levied upon the most certain kind of property, and upon property the most deeply concerned in sustaining the Government and its institutions. The man who has his wealth in money can put it into his pocket, and, leaving his own distracted land, remove to any other country he may select. Not so with the owner of real estate. His property depends for its value upon the stability of the Government where it is located.

Mr. Chairman, it has been said by my colleague [Mr. RoscOE CONKLING] that this imposition of tax upon real estate will operate hardly upon the rural districts and upon the farming interest of the country. Let me tell him that in the State which he and myself have the honor in part to represent, the valuation of real estate will show that the cities and towns predominate over the rural districts. I can name a man in the city of New York who, under this bill, will pay as much tax as one fourth of his entire constituency or one half of my own. I tell you, sir, that for the purpose of securing certainty to the lender, for the purpose of placing our credit upon a sure foundation, and for the purpose of securing money at a low rate of interest, no temptation can be offered a lender that would be equal to the levying of a tax upon real estate.

estate.

One word to those who are in favor of levying a tax upon personal property as well as upon real How is that to be carried out with any regard to equality and justice? If carried out at all, it must be by taxing the personal property found in possession of individuals. Let us go to the city of New York. There the assessor may be conducted to the large commission houses, where are deposited hundreds and thousands of dollars' worth of the products of Ohio and Illinois, and the other western States. The assessor will assess that property in the hands of commission merchants; but will those merchants pay tax upon that property? We could in that way levy much of our contribution from those products of the West. In like manner, go to our great storehouses where property is deposited, worth millions; where those with whom it is deposited have the slightest of all interest in it. I tell you, sir, that this mode of collection will be found impracticable. It is true, it cannot be said that the committee have presented us a bill which will operate in all respects justly. I can tell you also that your tariff does not, by a long way, operate with as much justness as this.

[Here the hammer fell.]

Mr. EDGERTON. I move to amend by striking out all after the nineteenth line.

agricultural interests of the country, if he believe
that those who have left their plows standing in
the furrows, their teams unharnessed, and rushed
to fight the battles of their country, will falter
when they are called upon to sustain the credit of
the country. No, sir, they will not falter; and
if we leave these Halls without providing for
the credit of the country, the very thing upon
which our success all depends, and without which
war never has been and never can be successfully
prosecuted; if we return to our homes without
putting the credit of the country upon a firm basis,
we shall be greater cowards than any man who
fled from the field of battle on Sunday last; and
we will deserve the sneers and the contempt of
our constituents, and we will receive them.

Why do not these men, who are opposed to
this bill, propose another and a better one? I
know an income tax has been talked of. Sir,
have the people considered what an income tax
is? In England, where men are living upon their
investments, upon their consols, upon their bonds
and mortgages, and have a certain fixed income,
an income tax is a tangible thing. But when you
come to the imposition of an income tax here, I
would like to have the assessor fix my income,
which depends upon the result and success of my
profession. I could not tell what it is. If I can
support my family, I am content; but if called
upon to tell what I receive, it would be a riddle
to me, as much as it would be to the assessor.

Mr. Chairman, I was resolved, when this bill came up, extraordinary as it is, to say nothing in relation to it; and I certainly should have said nothing in relation to it, but for the more extraordinary defense of it. We are told by gentlemen this morning, that this is the best bill that could possibly be devised for the purposes for which it is designed. At the same time we are told that it is the best bill, because it pledges the real estate of the country for the payment of this tax. I ask those gentlemen if it is fair, I ask if it is right, that this war should be sustained wholly by the landed interest of the country? I ask if the farmers of the country are to have their lands pledged as security for the payment of this debt, while the great stockholders, the money lenders, and the merchant princes of Wall street, and all the great capitalists, are to go free, and bear none of these burdens? I tell gentlemen that the common sense of the people will condemn this bill. They will see no reason, if the farmers of the country should pay four dollars tax upon his wagon or buggy that is worth $100, why a man who has $100 out at interest, at ten or fifteen per cent., should not pay the same. The farmer whose land, we are told, is pledged for the raising of this tax, will not be able to comprehend why his land, which nets him less than three per cent., should be taxed, while the man who loans thousands and hundreds of thousands of dollars at ten per cent., pays nothing. You cannot satisfy them that such a course is right. Gentlemen say that this is as just a bill as can be devised. I tell you a more odious bill cannot be devised, and one which the people will more promptly discard. Will you tell them that their lands are mortgaged, and at the same time tell them that the wealth of the country, the personal property of the country, the money and merchandise of the country, go free? I tell you it will create a storm among farmers of the country which cannot be resisted. While the men of the agricultural districts are loyal and true, and ready to do their full part, and more than their part, to sustain this war; while they are ready to send forth their sons to bear the heat and burden of battle, they are not willing that their farms, worth three or five thousand dollars, The gentleman from Illinois has said that we shall bear the whole burden, while the moneyed are all agreed as to the necessity of doing somewealth of the country, the stock-jobbers, bankers, thing. Does the gentleman remember that but merchants, and moneyed men are to go free. It yesterday a proposition was made to postpone is unjust and unequal; and it is no excuse for this question until December, and that that very this bill, to say the States can assume the debt. proposition came very near carrying? Does it Suppose that, hereafter, a political party should look as though the House comprehended the danarise in any of the States, wishing to make polit-ger to our credit, when but yesterday we passed ical capital out of this matter, and should refuse to have the State assume the amount: then this unequal tax will be levied upon the landholders of the country, and the moneyed wealth goes untaxed.

the

I say it is a thousand times better that this Government should suffer a depreciation of its credit for the time than that such a bill as this should pass. It would be better, because the passage of such a bill as this would infuse at once into our people a spirit of discontent and raise a clamor against the prosecution of this war, because of the injustice of this bill. It would array the farmers of the country as one man against it. While they are willing to bear their proper burdens, they are not willing that the more wealthy shall escape.

I have said to this House, and I say to the country, that, come what will, I will vote for no such bill. The time does not demand it; the necessities of the Government do not require it. If you will frame a bill which will equalize the incumbrance, I will willingly, gladly, vote for it; I should be recreant to my duty here if I did not, and I should be false to my constituents if I should vote for this.

Mr. DIVEN. When the gentleman from Ohio assumes that the farmers who own three or five thousand dollars' worth of real estate are to pay all this tax, he assumes what is by no means a fact. I tell the gentleman there is scarcely a banker or stock-jobber in the city of New York but will have to pay, under this bill, a tax, in proportion to what he is worth, greater than what the farmer who owes no debt, and lives upon the products of his farm, will have to pay.

And I tell the gentleman from Ohio that he mistakes the character of his constituency, and of the

So as to the merchant who one year successful and makes $10,000, and the next year is unsuccessful and loses $10,000-one year up and another down-how are you to fix his income? I have said, and I repeat, we require something tangible that we can place at the disposal of the creditor, to show that the security is sure and certain; and hence this direct tax should be levied upon something specific.

Now I did not propose, piecemeal, to discuss the merits of this bill; but I call upon this House, if they are sincere in their profession of sustaining this Government, if they are sincere in their declaration that to every extent, that to the utmost farthing they possess, they will give it to the country, let them come forward in the hour of their country's need, and sustain its credit.

an expediency bill which, to my mind, brought
more dismay to the country than the disasters
of Sunday last-a bill authorizing the issuing
of shinplasters by the Government at nine per
cent. interest; and when we are informed by the
Secretary of the Treasury that our securities are
selling at little over eighty per cent., a discount of
nearly twenty per cent.? When our credit is going
down with a run, shall we postpone a measure
that is necessary to restore it? No, sir. Let the
first thing this Congress does be to place the credit
of the country upon a secure foundation.
[Here the hammer fell.]

The amendment was not agreed to.

MESSAGE FROM THE SENATE.

Here the committee rose informally; and Mr.
WHITE of Indiana, having taken the chair as
Speaker pro tempore, a message was received from
the Senate, by Mr. PATTON, one of its clerks,
which announced that the Senate insisted on its
disagreement to the amendments of the House to
the Bill of the Senate to provide for the construc-
tion of one or more armored ships and floating
batteries, and for other purposes, had agreed to
the conference asked by the House on the dis-
agreeing votes of the two Houses on said bill, and
had appointed Messrs. HALE, GRIMES, and THOM-
SON, managers of said conference on the part of
the Senate.

INCREASED REVENUE BILL-AGAIN..
The Committee of the Whole on the state of the
Union then resumed its session.

Mr. CUTLER. I move, as an amendment, to
strike out the last proviso to the section. I desire,
Mr. Chairman, to submit to the committee some
remarks of a general character upon the bill now

under discussion; and in doing it, I am very willing to accept the assurance of the gentleman from Illinois, [Mr. LOVEJOY,] that there is a very general disposition on the part of this House not to abandon their labors here until the public wants are fully provided for, and until the Administration is fully sustained in its efforts to crush out this rebellion. I am willing also to admit that the question now is simply a question between the different interests of this great country in regard to the imposition of a tax which, under any and all circumstances, is met with reluctance by any people. I am willing also to admit the claim that in the levying of a tax for the purpose of maintaining the public credit, it is an element in that public credit that the tax shall be cheerfully borne. I am willing also to admit the fair and just claim put forth here, that this tax should be so distributed as to fall fairly, equally, and justly, upon the shoulders of all classes of our people. I think, however, that in the discussion of this question as a practical matter, we may narrow it down to that single point, and see where we stand. According to the statement in the report of the Secretary of the Treasury, the total valuation of this country amounts to $16,000,000,000. Of that amount, about one third is personal and about two thirds real estate; the proportion being, according to my recollection, as forty-eight to one hundred and twelve. Here, then, it seems to me that we have a fair starting point for a calculation as to the justice of any tax that is to be imposed. If the wealth and property of this country consist of real and personal estate in the proportion of forty-eight to one hundred and twelve, it seems to be a fair conclusion that the tax ought to be levied somewhat in that proportion as divided between these two classes of property.

Now, sir, the bill, as it stands, proposes to levy $30,000,000 upon real estate, in the shape of a direct tax; but it also provides that a certain amount shall be gathered from other sources. The real question, therefore-if it be narrowed down to a question of fairness between the different classes of property-is, whether the taxes on the classes of personal property enumerated make up that one third of the amount. I suppose, sir, that they will nearly do it.

Mr. SPAULDING. Yes, sig; they will supply $10,000,000.

Mr. EDGERTON. Will my colleague allow me to make a suggestion?

Mr. CUTLER. Certainly.

Mr. EDGERTON. Isuggest that, of the classes of personal property enumerated, on which taxes are to be levied-such as watches and carriagesa large portion are held by the landholders. Mr. CUTLER. I will come to that. But I am trying to get at a practical view of this question, as a question of fairness between the different classes of property holders in the country. If I understand the proposition, then, of the committee, it amounts to this: that there will be $30,000,000 levied upon real estate in this country; but, if I am correct in my supposition, it is not expected that there will be realized for present emergencies from the rebellious States the proportion that is assigned to them, and consequently there will be realized from the loyal States only $20,000,000, while the demands of the Treasury really require the $30,000,000. This I suppose to be the fact. [Mr. SPAULDING was understood to assent.] Very well; you have got $30,000,000, in round numbers, to raise. Now, if we raise $20,000,000 out of that $30,000,000 from the real estate of the loyal States, and if the gentleman who has made the statement is correct--and I certainly shall not call it in question-that $10,000,000 will be raised from the personalties named in the bill, you have really got a fair division of the tax between the different classes of property. It only remains to make a fair division of this amount among the different articles of personal property. I am willing to admit what my colleague has suggested, that some of the articles named as personal property to be taxed, are owned mainly by owners of real estate, and to that extent it operates not as a relief to them, but as an additional burden. But there are other considerations to be taken into account, when now, for the first time in the history of this country, we are attempting to build up a public credit in view of a permanent national debt. And what is public credit? Why, sir, it means armies; it means navies; it means

« PreviousContinue »