same class, coin, gold dust and bullion, and imposed a tax of five per cent. upon the "amount." The word " amount" as to coin was susceptible of two meanings-namely: the sum stamped thereon, and the actual quantity of metal. The other. members of the class were free from this ambiguity, and could only be rated by quantity. It seemed to follow that the same meaning must attach to all the members of the same class. This conclusion was strengthened by the direction to rate sterling exchange (which is usually treated as a correlative of coin) at its value in treasury notes, and by the further direction, already noticed in the assessment act, to assess coin in the same way. It was obvious that the holder of coin would suffer no injury by contributing such portion of his coin in kind, as under any circumstances he was bound to furnish sufficient treasury notes to purchase. It was thought probable that the tax in kind was intended by Congress to relieve the government from the obnoxious duty of depreciating its own currency. The tax levied in this form is also more beneficial, as it will secure to the government a portion of those large amounts of coin which have fled from the plundering hand of the enemy and have found its protection; and further, as it will enable the government to meet such demands for coin as occasionally arise.

There is another portion of the tax act to which I would respectfully direct the attention of Congress. A tax is imposed upon the capital stocks of all banks and other corporations, and another is laid upon all solvent credits.

The effect of these two enactments is to tax the capital of any corporation as stock, and then again to tax the securities in which the capital is invested. Banks of issue would be taxed even beyond this. Their issues, like their capital, are invested in securities. If these issues should be extended to twice the capital (as many of them are permitted by their charters to do) the bank would have to pay a tax of five per cent. on its capital, and then of five per cent. more on the total amount of credits in which its issues have been invested, amounting together to fifteen per cent. on its capital. This result is so manifestly unjust that I concluded that Congress could not have intended it. It probably was supposed that banks came under the exception in favor of any registered business. But this exception does not include banks of issue. I have, therefore, directed the assessors to make assessments in such form as will enable Congress to remedy the difficulty before the tax becomes payable. Several of the banks have applied for relief, and I respectfully commend to your attention a memorial which they have presented to this department, a copy of which is herewith submitted.

Another embarrassment in administering the tax act has been encountered in that portion which directs the tax in kind of farmers to be deducted from the tax of five per cent. on their capital. If the deduction intended was of the tax in kind of last year, then the planting interest will be entirely relieved from the taxes of last year whilst all other in

terests have duly contributed. If the reference is to the tax in kind of the current year, then as the money tax is payable in June, and the tax in kind cannot be realized until later in the year, it is impossible to deduct the latter from the former. Some explanatory act is respectfully asked.

I cannot leave this subject without specially invoking your attention to the inequality made by the tax bill in the assessment of agricultural and other property. While the latter is assessed at its value in treasury notes, which are acknowledged to be depreciated at least to one-third their face, the former is assessed at values which prevailed when treasury notes were nearly at par with specie. This inequality creates discontent in the public mind, and cannot be maintained as just and equal. In all public as well as private transactions it is dangerous to depart from the great principles of justice with a view to effect present expediency. Doubtless it was supposed that legislation of this kind would reach the speculator and extortioner. But it will be found that most of these classes have escaped the tax by taking refuge in agricultural investments; while thousands of widows and orphans and loyal citizens, who have invested their all in stocks and securities, are deprived of their means of support. I would respectfully recommend a revision of this section and the establishment of a uniform rate of assessment.

The report of the Commissioner of Taxes will present the results of the collection of taxes, as far as progress has been made. The amount collected is $82,262,349.83. The difficulties which are encountered in the collection can only be estimated by any one who will inspect the mass of papers which are required for each return, and the enquiries necessary to be made of each individual tax-payer. The results of the tax will probably confirm the recommendation already made of a resort to a more simple system of taxation The frauds and evasions, which cannot be discovered under the present system, are a perpetual drain upon the tax, which is necessarily increased by the number of officers who must be employed in its collection. And after all is done by the government which is possible, the result is that the most cunning in devices will escape, whilst only the honest and conscientious pay the full and just demands of the law.

In the process of collection, various amendments to the law have been found necessary, which will be brought to your attention in the report of the Commissioner of Taxes, to which I respectfully invite your attention.

The act imposing restrictions on the export of cotton, tobacco, and naval stores, and that prohibiting the importation of articles of luxury, have received the attention which they demanded. Under the first act certain regulations, issued by the President, of which a copy is herewith submitted, will fully exhibit what has been done; and, under the second, this Department has executed the duty imposed upon it as to the limita

tion within which importations shall be made of articles to be used for wearing apparel. A copy of the instructions issued to the collectors of customs on this subject is herewith submitted.

The customary estimates in detail are hereunto appended.
Respectfully submitted,

C. G. MEMMINGER, Secretary of the Treasury.

MAKING TREASURY NOTES A LEGAL TENDER.

CONFEDERATE STATES AMERICA,

TREASURY DEPARTMENT, Richmond, March 13, 1862.

Hon. L. J. Gartrell, Chairman Judiciary Committee:

SIR,-I have received your note of this morning, requesting my views upon the expediency of passing an act making treasury notes a legal tender in payment of debts.

I presume the enquiry, addressed to this Department, is directed to considerations of finance, and not of law, and I shall accordingly confine myself to these.

I. Treasury notes are now the accepted currency of the whole country, and circulate at par with bank notes. They, therefore, need no assistance at present to enable them to perform the function of legal tender. A law of Congress making their acceptance compulsory, will immedi ately induce the enquiry into the reasons for such a law. It will be asked Why enforce by penalty that which is freely done by every one? And it will be difficult to escape the conclusion which will be drawn, that the law-makers anticipate an expected refusal; and this anticipation involves suspicion of the notes. I need not comment upon the extreme sensitiveness of credit. It is obvious that the endeavor to force the notes upon the community will operate to shake the public confidence, and must depreciate their credit.

II. In any other view than an effort to prevent depreciation, the law would be useless, for it is plain that no law is necessary to produce a voluntary act. Assuming this depreciation as a fact, the next enquiry is, Will such a law repair or diminish the injury?

There are two classes of persons to whom the notes will be tenderedcreditors and sellers. The first are required to accept in payment less than they contracted to receive. However unjust this may be, they have no option. The law to them is in nature a bankrupt law, and the interest

of the whole creditor class of the community is thrown against it. As to sellers, they are at liberty to decline accepting the notes, unless an additional price is added to cover the depreciation. The law, therefore, cannot reach them. On the contrary, the apprehension of still further depreciation induces this class to raise their prices or to decline sales altogether.

III. If the government should attempt to constrain the receipt of the notes by penalties, they have before them the experience of all nations as to its utter failure. A reference to the laws of Virginia will show that after a vain attempt to secure the currency of her bills of credit by penalties in May, 1779, she repealed those penalties; and the subsequent experience of France is equally, if not more, instructive.

Extreme pressure may compel our government to adopt in the future extreme measures, but it seems to me that at present it is our best policy to avoid every possible shock to public credit, and to legislate in the other direction, namely, to increase taxes, and by every possible means to promote confidence in the integrity and solvency of the government.

My judgment is against the passage of the law at the present time. Respectfully your obedient servant,

(Signed)

C. G. MEMMINGER,

Secretary of the Treasurer.

COLLEGE ESSAYS AND ORATIONS.

ON THE "LOVE OF COUNTRY."

WRITTEN AT THE AGE OF FOURTEEN, WHILE IN THE SOPHOMORE CLASS, SOUTH CAROLINA COLLEGE.

To delineate the character andto portray the virtues of illustrious personages has ever been considered the proper province/of panegyric and elogium. The greater the quantity of the more superior the degree/in which those virtues which characterize a great and noble mind/are combined in the same person, the more worthy is he deemed of such distinguished marks of admiration and respect. But panegyric has frequently, however, exhausted her store and eulogium has lavished all her praises on him who possesses one alone of these virtues. He, who when surrounded by difficulties and encompassed with dangers, when overwhelmed by disastrous calamities and threatened with impending ruin; when property, friends, everything dear or desirable is swallowed up in the vortex of destruction; he, who in this situation, can preserve his equanimity and disregarding with manly indifference the storms of fortune, deviates not from the course at first laid down, has always been deemed a character worthy of the most attentive imitation. He, who with heroic magnanimity and exemplary valor, has led his armies to battle, when victory descending from her car alights upon his arms and extending her wings over the field drives from before her the hostile legions and dazzles their sight with her ægis; when prosperity presents to her favorite hero the cup of ambition and encircles his brow with the distinguishing laurel; when in this situation he dashes from his lips the intoxicating draught and returns to his former station with an unsullied and an untainted reputation, has always been held forth as a remarkable instance to mankind. With equal justice may the pen of eulogy trace the character of him who shrinks not, when adverse fortune frowns upon his prospects; when the dark and lowering cloud of destruction, which threatens his horizon, bursts forth with resistless impetuosity and rends the air with peals of thunder; when havoc, issuing from its bosom on the wings of the [490]