Book Description

This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1901 edition. Excerpt: ... CHAPTER III.--REMEDIES. In the second year of the Confederacy the tendency of the financial policy was variously interpreted. The practice of the Administration was to make cheerful reports on the condition of the public credit. The press was in the main conservative and loyal and not disposed as yet to judge harshly the Treasury methods, excepting the utterances101 of the Richmond Examiner. There was a popular notion of vast resources in the South, and none but the ignorant or timid dared question whether its debts could be paid, however enlarged. But the proposition in Congress of a high rate of taxation brought forth very divergent opinions on the economic measures feasible and adequate. A bill was reported September 23 by Mr. Kenner, of Louisiana, chairman of the Ways and Means Forced Loan Rejected. Committee, which provided for the levy of a uniform income tax of 20%. This was to be assessed on January 1, 1863, on the gross products of the year 1862. All sources of income were liable except bonds and Treasury notes. The minimum exemption of total products and income was $500. In return for paying this tax, the collectors were to give bonds of the Treasury, called "Income Tax Bonds," bearing 6% interest and the principal payable from 10 to 30 years. This plan was thus a forced loan under the name of a tax. The line of support of the bill by Mr. Kenner gave the type of the new resolute policy that would have repaired earlier mistakes. His argument102 was that things Apr. 4, Apr. 11, .Sept. 16, 1862, etc. Richmond Sentinel, Examiner, Sept. 23, 1862. had been going smoothly, but now the time had come for vigorous action. With one slight exception the credit of the South had been based on its future resources. The printing presses could...