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Our Financial Legislation. LOANS of $50,000,000, making the whole amount author

$100,000,000. The financial legislation has been as follows: 1 March 1-Authorized an issue of CERTIFICATES OF INDEBT1860, December 17-Authorized an issue of $10,000,000 in EDNESS, payable one year from date, in settlement of audited TREASURY NOTES, to be redeemed after the expiration of one claims against the Government. Interest 6 per cent. per year from the date of issue, and bearing such a rate of in- annum, payable in gold on those issued prior to March terest as may be offered by the lowest bidders. Authority 1803, and in lawful currency on those issued on and after was given to issue these notes in payment of warrants in that date. Amount of issue not specified. favor of public creditors at their par value, bearing six per 1862, July 11-Authorized an additional issue of $150.000,cent. interest per annum.

000 legal tender NOTES, $35,000,000 of which might be in de 1861, February 8--Authorized a Loan of $25,000,000, bear nominations less than five dollars. Fifty million dollars of ing interest at a rate not exceeding six per cent. per annum, this issue to be reserved to pay temporary loans promptly and reimbursable within a period not beyond twenty years in case of emergency. nor less than ten years. This loan was made for the pay July 17-Authorized an issue of NOTES of the fractional ment of the current expenses, and was to be awarded to the part of one dollar, receivable in payment of all dues, except most favorable bidders.

customs, less than five dollars, and exchangeable for Taited March 2-Authorized a LOAN of $10,000,000, bearing inter States notes in sums not less than five dollars. Amount of est 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, 1863, January 17-Authorized the issue of $100,000.00 in 1861. In case proposals for the loan were not acceptable, United States NOTES for the immediace payment of the army anthority was given to issue the whole amount in TREASURY and navy; such notes to be a part of the amount provided NOTES, bearing interest at a rate not exceoling six per cent. for in any bill that may hereafter be passed by this Cor per annum. Authority was also given to substitute TREAS. gress. The amount in this resolution is included in act of URY NOTES for the whole or any part of the loans for which March 3, 1863. the Secretary was by law authorized to contract and issue March 3 Authorized a LOAN of $300,000,000 for this and bonds, at the time of the passage of this act, and such treag. $600,000,000 for the next fiscal year, for which could be is. ury notes were to be made receivable in payment of all pub sued bonds running not less than ten nor more than forty lic dues, and redeemable at any time within two years from years, principal and interest payable in coin, bearing interMarch 2, 1861.

est at a rate not exceeding 6 per cent. per annum, payable March 2-Authorized an issue, should the Secretary of on bonds not exceeding $100, annually, and on all others the Treasury deem it expedient, of $2,800,000 in coupon semi-annually. And TrEASURY NOTES (to the amount of BONDS, bearing interest at the rate of six per cent. per an- $400,000,000) not exceeding three years to run, with interest num, and redeemable in twenty years, for the payınent of, at not over 6 per cent. per annum, principal and interest expenses incurred by the Territories of Washington and payable in lawful money, which may be made a legal tendit Oregon in the suppression of Indian hostilities during the for their face value, excluding interest, or convertible into years 1855-'56.

United States notes. And a further issue of $150,000,000 in July 17-Authorized a loan of $250,000,000, for which Uuited States NOTES for the purpose of converting the Trees could be issued BONDS bearing interest at a rate not exceed-ury notes which may be issued under this act, and for bo ing 7 per cent. per annum, irredeemable for twonty years, other purpose. And a further issue, if necessary, for the and after that redeemablo at the pleasure of the United payment of the army and navy, and other creditors of the States.

Government, of $150,000,000 in United States NOTES, which TREASURY NOTES bearing interest at the rate of 7.30 per amount includes the $100,000,000 authorized by the joint cent. per annum, payable three years after date; and resolution of Congress, January 17, 1863. The whole arount

United States NOTES without interest, payable on demand, of bonds, treasury notes, and United States notes issue to the extent of $50,000,000. (Increased by act of February under this act not to exceed the sum of $900.000,000. 19, 1862, to $60,000,000.)

March 3—-Authorized an issue not exceeding $50,000,000 The bonds and treasury NOTES to be issued in such pro in FRACTIONAL CURRENCY, (in lieu of postage or other stamps) portions of each as the Secretary may deem advisable. exchangeable for United States notes iu sums not less than

August 5-Authorized an issue of BONDS bearing 6 per three dollars, and receivable for any dues to the United cent. interest per annum, and payable at the pleasure of tho States less than five dollars, except duties on imports. The United States after twenty years from date, which may be whole amount issued, including postage and other stampa issued in exchange for 7.30 treasury notes; but no such issued as currency, not to exceed $50,000,000. Anthority bonds to be issued for a lesy sum than $500, and the whole was given to prepare it in the Treasury Department, under amount of such bonds not to exceed the whole amount of the supervision of the Secretary. 7.30 trensury notes issued.

1861, March 3-Authorized, in lieu of so much of the loan 1962. February 25-Authorized the issue of $150,000,000 of March 3, 1863, a LOAN of $200,000,000 for the current fiscal in legal (crulor United States NOTES, $50,000,000 of which to year, for which may be issued bonds redeemable after five be in lieu of demand notes issued under act of July 17, 1861, and within forty years, principal and interest payable in $500,000,000 in 6 per cent. bonds, redeemablenfter five years, coin, bearing interest at a rate not exceeding 0 per cent. and payable twenty years from date, which may be ex. per annum, payable annually on bonds not over $100, and changed for United States notes, and a temporary loan of on all others semi-annually. These bonds to be exempt $25,000,000 in United States notes for not less than thirty from taxation by or under State or municipal authority. days, payable after ten days' notice at 5 per cent. interest 1864. June 30--Authorized & LOAN of $100.000.000, for per annum.

which may be issued bonds, redeemable after five nor pore March 17---Authorized an increase of TEMPORARY LOANS of than thirty years, or if deemod expedient, made payable at $25,000,000, bearing interest at a rate not exceeding 5 per any period not more than forty years from date-interest cent. per annum.

not exceeding six per cent. semi-annually, in coin. Secre July 11-Authorized a further increase of TEMPORARY | tary of the Treasury is authorized to dispose of those bonds, 49.

“Legal Tenders.”

or any part, and of the remainder of the five-twenties, in the Baxter, Bontwell, Boyd, Cobb, Cole, Creswell, Dawes, Dem. United States or in Europe, on such ternis as he may deem ing, Dixon, Driggs, Eckley, Eliot, Garfield, Gooch, Higby, most advisable, for lawful money of the United States, or, at IIooper, Hotchkiss, J. H. Hubbard, Ingersoll, Jenckes, his discretion, for Treasury notes, certificatey of indebted Julian, Kelley, Longyear, McClurg, Moorhead, Morrill, D. ness, or certificates of deposit issued under any act of Con- Morris, Leonard Myers, Norton, Charles O'Neill, Perham, gress. And all bonds, Treasury notes, and other obligations Alexander H. Rice, John H. Rice, Edward II. Rollins, of the United States shall be exempt from taxation by or Schenck, Shannon, Sloan, Smith, Smithers, Francis Thomas, under State or municipal authority. In lieu of an equal Tracy, Upson, Ellihu B. Washburne, William B. Washburn, argount of bonde, not exceeding $200,000,000, the Secretary | Webster, Wilder, Wilson, Windom, Woodbridge--53. is authorized to issue Treasury notes of not less than $10, NAYS-Messrs. Ancona, Baily, Bliss, Brooks, Chanler, payable at any time not exceeding three years, or, if thought Coffroth, Cox, Dawson, Denison, Eden, Edgerton, Eldridge, expedient, redeemable at any time after three years, at an English, Ganson, Harding, Benjamin G. Harris, Charles M. interest not exceeding seven and three tenths per cent., Harris, Hutchins, William Johnson, Kernan, Knapp, Law, payable in lawful money at maturity, or, at the discretion Lazear, Le Blond, Littlejohn, Long, Marcy, Middleton, TVTA. of the Secretary, semi-annually. And the said Treasury | II, Miller, James R. Morris, Morrison, Nobile, Odell, Jolra Dotes may be disposed of by the Secretary of the Treasury, loNeill, i'endleton, Pruyn, Samuel J. Randall, Robinson, on the best terms that can be obtained, for lawsul money; James S. Rollins, Ross, Scofield, John B. Steele, William and such of them as shall be made payable, principal and G. Steele, Stevens, Stiles, Sweat, Ward, Williams, Winfield Interest, at maturity, shall be a legal tender to the same extent as United States notes for their face value, excluding

Seventy-eight absentees. interest, and may be paid to any creditor of the United States at their face value, excluding interest, or to any

It passed the Senate same day-yeas 28, creditor willing to receive them at par, including interest; nay 7, as follows: and any Treasury potes issued under the authority of this YRASMessrs. Anthony. Clark, Conness, Cowan, Doo. act may be made convertible, at the discretion of the Secre

littlo, Foot, Foster, Hale, Harlan, Harris, Hicks, Howe, tary of the Treasury, into any bonds issued under the au

Johnson, Lane of Iudiana, Lare of Kansas, McDougall, Mor. thority of this act. And the Secretary of the Treasury may

gan, Morrill, Pomeroy, Ramsey, Sherman, Sumner, Ten redeem and cause to be cancelled and destroyed any Treas

Eyck, Trumbull, Van Winkle, Wilkinson, Willey, Wilson ury Dotes or United States notes heretofore issued under

-28. authority of previous acts of Congress, aıd substituto, in

NAYS-Messrs. Buckalew, Carlile, Davis, Powell, Rich hea thereof, an equal amount of Treasury notes such as are authorized by this act, or of other United States notes; Pro

arlson, Riddle, Sauisbury7. rided, That the total amount of bonds and Treasury notes anthorized by the first and second sections of this act shall not exceed $100,000,000 in addition to tho amounts heretofore issued; nor shall the total amount of United States Second Session, Thirty-Seventh Congress. notes, issued or to be issued, ever exceed $100,000,000, and such additional sum, not exceeding 800,000,000, as may be

1862, Feb. 6—The House came to a vote on temporarily required for the redemption of temporary loan; two propositions for the issue of $150,000,000 Dor shall any Treasury note bearing interest, issued under

in Treasury notes. this act, be a legal tender in payment or redemption of any Dotes issued by any bank, banking association, or banker,

| The one, for notes without interest, and decalculated or intended to circulate as money.

nomination not below $5—of which $50,000,000 Sec. 3. That the interest on all bon is heretofore issued,

should be in lieu of so many of the “Demand payable annually, may be paid semi-annually; and in liou of auch vonds authorized to be issued, the Secretary of the

notes”-to be receivable for all duties, imposts, 'Treasury may issue bonds bearing interest payable semi-excises, debts, and demands of every kind duo annually. And he may also issue in exchange for Treasury to the United States, and all salaries, &c., from botes heretofore issued bearing seven and three-tenths per centum interest, besides the six per cent honds heretofore

the United States, and shall also be lawful anthorized, like bonds of all the denominations in which said

debts. Treasury notes have been issued; and the interest on such

public and private, within the United States," to · Treasury notes after maturity shall be puid in lawful money, and they may be exchanged for such bonds at any time be exchangeable for twenty year six per cent. within three months from the date of notice of redemption by the Secretary of the Treasury, after which the interest

year seven per cent. bonds with interest payaOn such Treasury notes shall cense. And so much of the lax approved March 3, 1861, as limits the loan authorized ble semi-annually in coin. Such United States therein to the current fiscal year, is hereby repealed; and notes to be received the same as coin in paythe authority of the Secretary of the Treasury to borrow

ment for loans. Five hundred millions of money and issue therefor bonds or notes conferred by the Arst section of the act of March 3, 1863, entitled “ An act bonds authorized, payable after twenty years, to provide ways and means for the support of the Govern- at six per cent. interest payable semi-annually. Dieut," shall cesso on and after the passage of this act,

The other, offered as an amendment, authorexcept so far as it may effect affect] $75,000,000 of bonds Wready advertised.

ized $100,000 of Treasury notes at 3.65 per SPECIAL WAR INCOME TAX.

cent. per annum, payable in two years, to be Rescued, &c., That, in addition to the income duty alrea receivable for all public dues except duties on dy imposed by law, there shall be levied, ausessed, and culo imports, and for all salaries, debts, and delected on the first day of October eighteen hundred and

mands owing by the United States to individ. sixty-four, a special income duty upon the gains, profits, or income for the year ending the thirty-first day of Decem uals, corporations, and associations within the ker next preceding the time herein named, by levying, as- United States, at the option of such individu

king, and collecting said duty of all persons rosiding witlin the United States, or of citizens of the United States

Stats als, corporations, and associations, exchangeaTesiding abroad, at the rate of five per centuri on ull sums ble for 7.30 bonds with interest payable semi€Xerding six hundred dollars, and the samo shall be lovied, annually in coin, and receivable the same as a ssed, estimated, and collected, except as to the rates, I coin in payment of loans. $500.000.000 of according to the provisions of existing laws for the collection of an income duty, annnally, where not inapplicable bonds authorized-$200,000,000 at 7:30 interbereto; and the Secretary of the Treasury is hereby au

redeemthorizeil to Inake such rules and regulations as to time and

able after ten years, and $300,000,000, redeemmode, or other matters, to enforce the collection of the special income duty herein provided for, as may be noces. able after twenty-four years, at 6 per cent., Buy: Provided, That in estimating the annual gains, pro

the annual gains, pro- payable semi-annually in coin. fits, or income, as aforesaid, for the foregoing special income duty, do deductions shall be made for dividends or interest

The laiter was rejected-yeas 55, nays 95, as Peeived from any association, corporation, or company, nor follows: Hall any deduction be made for any salary or pay received. Yeas---Messre. Ancona, Baxter, Biddle, George H. Browne, This resolution passed the House, July 4-- William G. Brown, Cobb, Frederick A. Coukling, Roscoe

Conkiing, Conway, Corning, Cox, Cravens Crisfield, Critreas 53, nays 49, as follows:

tenden, Diven, Eliot, English, Goodwin, Grider, Harding, This Messis. Alley, Allison, Ames, Isaac N, Arnold, Holman, Horton, Johnson, Law, Lazear, Lurejoy, May,


Menzies, Justin S. Morrill, Morris, Nixon, Noble, Norton, among other things, to strike out the legal ten.
Nugen, Odéll, Pendleton, Perry, Pomeroy, Porter, Edward
H. Rollide, Sedgwick, Sheffield, Shiel, William G. Steele,

oder clause; but it was rejected without a
Stratton, Benjamin F. Thomas, Francis Thomas, Train, I division.
Vallandigham. Wadsworth, E P. Walton, Ward, Webster, The bill was then passed-yeas 30, Days 7,
Chilton A. White, Wright-55.

NATg-Messrs. Aldrich, Alley, Arnold. Ashley. Babbitt. | as 101/ows:
Goldsmith F. Bailey, Joseph Baily. Baker, Beaman, Biog-1 YEA8_Messrs. Anthony, Chandler, Clark, Davis. Dixon.
ham, Francis P. Blair, Jacob B. Blair, Samuel 8. Blair, Doolittle, Fessenden, Foot, Foster, Grimes, Hale, Harlan,
Blake, Butlnton, Burnham, Campbell, Chamberlain, Clark, Harris, Henderson, Howard, Howe, Lane of Indiana, La
Colfax, Cutler, Davis, Delano, Delaplaine, Duell, Dunlap, tham, McDougall, Morrill, Pomeroy, Rice, Sherman, Sum-
Dunn, Edgerton, Edwards, Ely, Fenton, Fessenden, Fisher, ner, Ten Eyck, Trumbull, Wado, Wilkinson, Wilson of
Franchot, Frank, Gooch, Granger, Gurley, Haight, Hale, Massachusetts, Wilson of Missouri-30.
Hanchett, Harrison, Hickman, Hoopor, Ilutchins, Julian, NAYS-Messrs. Collamer, Cowan, Kennedy, King, Pearce,
Kelley, Francis W. Kellogg, William Kellogg, Killinger, Powell, Saulsbury—7.
Knapp, Lansing, Leary, Loomis, McKean, Mcknight,
McPlierson, Marstou, Maynard, Mitchell, Moorhead, Anson Feb. 20--In the House, the question being
P. Morrill, Olin, Patton, Timothy G. Phelps, Pika, Price, on concurring in the amendment of the Senate
Alexander H. Rice, John H. Rice, Richardson, James S.

: | making the interest upon bonds and notes pay-
Rollins, Sargent, Shanks, Shellabarger, Sherman, Sloan,
Spaulding, John B. Steele, Stevens, Trimble, Trowbridge, able in coin,
Upton, Van Horn, Van Valkenburgh, Van Wyck, Verree,

Mr. STEVENS moved to include also “pay. Wall, Wallace, Charles W. Walton, Whaley, Albert S.

ments to officers, soldiers, and sailors, in the White, Wickliffe, Wilson, Windom, Worcester-95. The affirmative vote on the passage of the

Army and Navy of the United States, and for former was the same as the negative on the

all supplies purchased for the said Governamendment except that Messrs. W. G. Brown

ment;" wbich was rejected-yeas 67, nays 72. and Crittenden, who voted aye on the amend

| The amendment of the Senate. making interest ment, did not vote on the passage of the bill; |

ill. payable in coin was then concurred in-seas Messrs. Dunlap, Knapp, Richardson, and Wick: 88, nays 55, as follows: liffe, who voted nay on the amendment, voled

YEAS-Messrs. Ancona, Arnold, Ashley, Baxter, Beaman,

Biddle, Jacob B. Blair, George H. Browne, William G. nay on the passage; Messrs. Mallory, Robinson, Brown, Burnham, Calvert, Clements, Cobb, Frederick A. and Voorhees, who did not vote on the amend Conkling, Roscoe Conkling, Conway, Covole, Cox, Crarens, ment, voted nay on the passage ; Mr. Nugen,

Crittendin, Diven, Dunlap, Dunn, Eliot, English, Goodwin,

Gridor, Gurley, Haight, Hall, Harding, Holman, Horton, who voted aye on the amendment, voted aye on

Johnson, Kelloy, Knarp, Law, Leary, Lehman, Loomis, the passage ; and Messrs. Dunn and Riddle, Lovejoy, Mcknight, Mallory, May, Menzies, Justin S. Mor who did not vote on the amendment, voted aye

rill, Nixon, Noble, Norton, Nugen, Odell, Patton, Pendleton,

Perry, Timothy G. Phelps, Pike, Pomeroy, Alexander on the passage.

II. Rice, Riddle, Robinson, Edward II. Rollins, James & IN SENATE.

Rollins, Sargent, Sedgwick, Sheffield, Sherman, Suel, Sarith,

John B. Steele, Willum G. Steele, Stratton, Benjamin F. February 12—The Committee of Finance Thomas, Francis Thomas. Train, Trimble, Vallandlighan, recommended instead of making these notes re- | Vibbard, Voorhees, Charles W. Walton, E. P. Walton,

Ward, Washburne, Webster, Whaley, Wheeler, Wicklige ceivable for all demands due to, and all de

Woodruff, Wright-88. mands owing by, the United States, this substi NAYS--Messrs. Aldrich, Alley, Babbit, Joseph Baily, Baker, tute:

Bingham, Francis P. Blair, Samuel S. Blair, Dlake, Buftio

ton, Campbell, Chamberlain, Clark, Davis, Dawes, Duell, And sach notos herein authorized shall be receivable in

Edwards, Ely, Fenton, Fossenden, Fisher, Franchot, Frank, payment of all public dues and demands of every descrip-Granger, Hale, Ilanchett, Ilarrison, Hickman, liooper, Jution, and of all claims and demands ag inst the United

lian, Willian Kellogg, Killinger, Lansing, McPherson, States of every kind whatsoever, except for interest upon

Marston, Maynard, Moorhead, Anson P. Morrill, Voell, Olin, bonds and not-8, which shall be paid in coin.

John H. Rice, Shanks, Sloan, Spaulding, Stevens, TrowMr. SHERMAN moved to include with these bridge, Van Ilorn, Fan Valkenburgh, Verree, Wall, Wallace,

Albert S. White, Wilson, Windom, Worcester-55. notes, “the notes authorized by the act of July 17, 1861;" which was agreed to.

Other amendments were non-concurred in, and The amendment as amended was agreed to. & Committee of Conference agreed upon the

Feb. 13-Mr. COLLAMER moved to strike out bill as it became a law. these words:

One feature of this report was to provide And such notes herein authorized and the notes author- that the Treasury notes issued under the bill ized by the act of July 17, 1861, shall be receivable in pay- should not be a legal tender in payment of dument of all public dues and demands of every description,

ties, and the duties op imports, made payable and of all claims and demands against the United States of every kind whatsoever, except for interest upon bonds

would and notes, which shall be paid in coin, and shall also be interest on the bonds. lawiul money and a legal tender in payment of all debts,

| The report was agreed to in the House-yeas public and private, within the United States, except iuterest as aforesaid.

98, nays 22. The Nays wereWhich was rejected-yeas 17, nays 22, as Mergrs. Baker, Biddle, Buffinton, Chx, Edwards, English,

Hight, Ilooper, Johnson, Justin S. Morrill, Olell, Perlisten jollows:

Perry, Pike, Robinson, Sheffield, William G. Steele, Van YEAS-Messrs. Anthony, Bayard, Collamer, Cowan, Fes. Wyck, Voorhees, Wickliffe, Wood, Woodruff-22. sendes, Foot, Foster, Kenneily, King, Latham, Nesmith,

The Senate concurred without a division. Pearce, Ponoell, Saulsbury, Summons, Thomson, Willey-17.

NAYA--Messrs. Chandler, Clark, Davis, Dixon, Doolittle, While this question was pending before the
Ilarinn, Harris, Henderson, Howard, Howe, lano or Inui-Committee of Ways and Means, the Secretary
aga, McDougali, Morrill, Pomeroy, Rice, Sberman, Sumper,
Ten Eyck, Wade, Vilkinson, Wilson of Massachusetts,

Fof ihe Treasury, Mr. Chase, addressed them & Wilson of Missouri-22.

letter, from which this is an extract: Mr. DOOLITTLE moved to amend the bill so as

TREASURY DEPARTMENT, January 29, 1862 to make the notes a legal tender “in payment

SIR: I have the honor to acknowledge the recript of a

" resolntion of the Committee of Ways and Means, referring of

me to llouge bill No. 2:0, and requesting my opinion as to after contracted within the United States ;' the propriety and necessity of its immediate passage Ly

Congress. which was rejected without a division.

The condition of the Treasury certainly renders immerti Mr. King offered an amendment, proposing, I ate action on the subject of affording provision for the e..

it of

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penditures of the Government, both expedient and neces- | prohibits the circulation of bank notos of a less sary. The general provisions of the bill submitted to me, denomination than five dollars in the District kein to me well adapted to the end propoged. There are, however, some points which may, perhaps, be usefully of Columbia,” has received my attentive conAmended.

sideration, and I now return it to the Senate, The provision making Unitod States notes a legal tender

in which it originated, with the following obhas 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 to this provision my reflections have conducted me to the

legislation, probibiting the circulation of bank mame conclusions they have reached. It is not unknown to them that I have felt, nor do I wish to conceal that I now 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,

Samitting the issuing of such bills by banks not at present impossible, in consequence of the large expendi. tures entailed by the war, and the suspension of the banks,

he suspension of the banks, judgment, it will be found impracticable, in to procure sufficient coin for disbursements; and it has, therefore, become indispensably necessary that we should the present condition of the currency. to make resort to the issue of United States notes. The making such a discrimination. The banks bave generthem a legal tender might, however, still be avoided if the

ally suspended specie payments; and a legal Fillingnes manifested by the people generally, by railroad

Uatior companies, and by many of the banking institutions, to receive and pay them as money in all transactions were deemable notes of one class of them, will almost aleolutely or practically universal; but, unfortunately, there are sone 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 annecessary depreciation of the notes, but to establishized or unauthorized. If this view be correct, discrimination in business against those who, in this mat- the currency of the District, should this act ter, give a cordial snpport to the Government, and in favor 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 ateriorate to the serious injury of honest trade Jeral tender, in a great measure at least, prevents it, by put-1 and honest labor. tin; all citizens, in this respect, on the same lovel both of rights and duties.

2. This bill seems to contemplate, no end The committee, doubtless, feel the necessity of accom- which cannot be otherwise more certainly and panying this measure by legislation necessary to secure the beneficially attained. During the existing war. highest credit as well as the largest currency of thesó notes. This security can be found, in my julkinent, by proper pro

dro- it is peculiarly the duty of the National Gov. visions for funding them in interest bearing bonds, by well-ernment to secure to the people.a sound circuguarded legislation authorizing banking associations with låting medium. This duty has been. under circulation based on the bonds in which the notes are fundel, and by a judicious system of adequate taxation, which existing circumstances, satisfactorily performwill not only crente a demand for the notes, but-by secured

ue of ing the prorupt payment of interest-raise and sustain the United States notes, receivable for all Govern. cre lit of the bonds. Such legislation, it may be hoped, will divest the legal lender clause of the bill of injurious ten- ment dues except customs, and made a legal dencies, and secure the earliest possible return to a sound tend Currency of coin and promptly convertible notes.

interest on the public debt. The object of the I beg Icare to add that vigorous military operations and the unsparing retrenchment of all necessary expenses will

bill submitted to me, namely, that of providing also contribute essentially to this desirable end.

a small note currency during the present sus

pension, can be fully accomplished by authorizI have the honor to be, with very great respect, yours truly,

S. P. CHASE. ing the issue as part of any new emission of Hon. THADDEUS STEVENS, Chairman.

United States notes made necessary by the During the pendency of this question,

circumstances of the country-of notes of a 1862, January 15-Mr. CORNING offered this

similar character, but of less denomination joint resolution :

than five dollars. Such an issue would answer

all the beneficial purposes of the bill; would Resulred, &c., That in order to pay the ordinary expenses of the Government, the interest on the national loans, and save a considerable amount to the treasury, in bare an ample sinking fund for the ultimate liquidation of interest; would greatly facilitate payments to the public debt, a tax shall be imposed, which shall, with

soldiers and other creditors of small sums; the tariff on imports, secure an annual revenue of not less tlian $150,000,000.

and would furnish to the people a currency as

safe as their own Government. Which was adopted-yeas 133, nays 6. The Nays were :

Entertaining these objections to the bill, I

feel myself constrained to withhold from it my Messrs. Allen, Norton, Robinson, Shiel, Voorhees, Wood-6.

approval, and return it for the further consideraThe following Democrats voted aye :

tion and action of Congress. Messrs. Ancona, Joseph Baily, Charles J. Biddle, G. H.

ABRAHAM LINCOLN. Brnon, C. B. Calvert, G. T. Cobb, E. Corning, S. s. Cox, J. June 23, 1862. W. Chisfield, 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. Voble, J. W. Noell, R. H. Nugen, Odell, G. H. Pero

State Taxation. driton, N. Perry, J. S. Rollins, W. P. Sheffield, 'J. B. Steele, W.G. Sbele, c. 'L. Vallandigham, C. Vibbard, Wadsworth,

First Session, Thirty-Eighth Congress. E. Ward, C.A.Wickliffe, G. C. Woodruff, H. B. Wright-38. June 22—The loan bill before the House in

January 17- The Senate passed the resolu | Committee of the Whole, and the question bedion-yeas 30, nays 1, (Mr. Powell.)

ing on the first section, authorizing a loan of

$400,000,000, closing with this clause: SMALL BANK NOTES-VETO MESSAGE.

And all bonds, Treasury notes, and other obligations of To the Senate of the United States :

the United States shall be exempt from taxation by or The bill which has passed the House of Rep-| under

under State or municipal authority. resentatives and the Senate, entitled “An act Mr. HOLMAN moved to strike out the clause, to repeal that part of an act of Congress which which was agreed to-yeas 61, nays 44.


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Mr. Holman moved to insert at the end of Mr. Tomeroy movie this substitute for the the first section these words :

second section of the oill: And that the bonds and other obligations issued under Sec. 2. Ani be it further enacted, That the Secretary of this act shall be subject to State and municipal taxation. the Treasury may in-00, mpon the credit of the United

States, bopds of any denomination not less than $100, par. Mr. NOBLE moved to amend the amendment able in lawful money, thiee years from the date thereof, by substituting the following:

and bearing interest not exceeding eight per cent. per alt

num, payable semi-annually in lawful money, and may And all bonds, Treasury notes, and other obligations of receive at par there for the lawful money of the United the United States, shall be subject to State and municipal States. Treasury notes, certificates of indebtedness, or cer tuxation, on equal terms, the same as other property.

tificates of deposit issued under any act of Congress. And Which was rejected.

the Secretary of the Treasury, in addition to the total

amounts of bonds authorized by the first and second se Mr. KERNAN moved tbis substitute for Mr. tions of this act, shall issue at par, in redemption of any HOLMAN's amendment:

0.tstanding notes, certificates of deposit, cortificates of in And that the owners of the bonds and obligations issued

debte Iness of the United States, bonds similar to those

hereinbefore in this second section authorized, in denomiunder and by virtue of the provisions of this act shall be

nations of not less than $100, or of like denominations liable to State and municipal taxation upon the value thereof to the same extent as they are liable to such taxa

similar to the authorized by the first section, and pay.

able five years from date, with interest at six per cent. tion upon any other securities or similar personal estate

pa yablo seni-annually. And the Secretary of the Treasowned by them.

ury is further authorized to issue, in lieu of any bonds Mr. HOLMAN accepted the amendment, which beretofore authorized by law, and not now issued in pur.

suance thereof, bonds similar to and in the denominations was rejected-yeas 50, nays 59.

herely authorized. All outstanding notes, other than June 23-Pending the consideration of the United States potes, shall cease to be a legal tender in psy. un bill in the House being in Committee of ment of public or private indebtedness on and after the 1st

dav of October, 1864. Aid no notes, other than tuited the Whole,

States potes, shall hereafter be issued or reissued. Nor Mr. STEVENS offered this substitute for the shall the total amount of United States notes issued or to bill:

be issued ever exceed $100,000,000, and such additional sum,

not exceeding $50,100.000, as may be temporarily required That the Secretary of the Treasury he, and he is hereby, for the redemption of temporary loan authorized to borrow, from time to time, on the credit of the United States, $100,000,000, for the service of the fiscal

Which was rejected-yeas 44, nays 81, as year ending June 30, 1865, and to issue therefor, coupon or follows: registered bonds of the United States, redeemable, at the pleasure of the Government, after any period not less than

YEAR Messrs. Ancona, Augustus C. Baldwin, Brooks, tive nor more than thirty years, and, if deemned expedient,

William G. Brown, Freeman Clarke, Coffroth, Cole, Cratons, macie payable at any period not more than forty years from

Creswell, Dawes, D1w8om, Edgerton, English, Farnsworth date, payable in coin. And suid bonds shall be of such

Ganson, Griswold, Herringtım, Herrick, Holman, Hotcbdenominations as the Secretary of the Treasury shall direct,

kiss, Jonckes, Kalbfleisch, Kornan, Law, Marcy, Samuel F. not less than fifty dollars, and bear an annual interest not

Miller, James R. Morris, Morrison, Nelson, Ouril, Pike, exceeding eight per cent., payable semi-annually, and the

Pomeroy, Price, Pruyn, James S. Rollins, Rogs, Scotield. interest on all bunds heretofore issued, payable annually,

| John B. Steele, Thayer, Van Valkenburgh, William B. Wasbmay be paid semi-annually: and in lieu of such bond, au

burn, Whaley, Whecler, Wilson-14. thorized to be issued, the Secretary of the Treasury may

NAYS_Messrs. William J. Allen, Alley, Allison, Ames issue bonds, bearing interest, payable semi-annually. And

Arnold, Ashley, Baily, John D. Baldwin, Baxter, Bean , be may also isste in exchange for Treasury notes hereto

Blair, Blow, Boutwell, Boyd, Broomall, James S. Drea, fore issued bearing seven and three tenths per cent. inter

Ambrose W. Clark, Cobb, Thomas T. Davis, Denison, Dixon, est, besides the six per cent. bonds heretofore authorized.

Donnelly, Drigos, Elen, Eldrilge, Eliot, Frank, Goch, like bonds of the denominution of $100 and of $50. And

Ilale, Harding, Benjamin G. Harris, Ilooper, Aschel W. all bonds, Treasury notes, and other obligations of the

Hubbard, John H. Ilubbard, Ilulburd, Philip Johnson, Joe United States shall be exempt from taxation by or under

lian, Kelley, Francis W. Kellozg, Orlando Kellogg, KPUD, State or municipal authority.

Knox, Loan, Long, Longyear, McAllister, McBride, McClurg.

Wm. H. Miller, Moorhead, Morrill, Daniel Morris, Anos Mr. Holman moved to strike out the last

Myers, Leonard Myers, Noble, Norton, Charles O Neill, John sentence, which was rejected, on division-yeas O'Neil, Orth, Perlmum, Johu II. Rice, E. II. Rollins, Scheuck, 58, nays 73.

Shannon, Sloan, Smithers, Spaling, Wm. G. Sterle, Stevens

Stiles, Strouxe, Stuart, Tracy, Upson, Ellibu B. Washburne, The amendment was agreed to in Committee, / Webster, Williams, Windom, Winfield, Benjamin 100d, Fer yeas 72, nays 51; but immediately after was

was nando Wood-81. rejected in the House-yeas 59, nays 81, as 1 The bill then passed without the yeas and follows:

nays being ordered. YEAs-Messrs. William J. Allen, Anderson, Baily, Augus- June 27-The bill was slightly amended in tuis C. Balilwin, Baxter, Blair, Blow, Boyd, Brookx, Broomall, William G. Brown, Cole, Dawsom, Denison, Donnelly,

the Senate, and passed without a division. Eien, Eldridge, Farnsworth, Grider, Mariling, Benjamin G.

STATE TAXATION-AGAIN. Harris, ligby, Holman, Hotchkiss, Asabel W. llubbard, Ingersoll, Philip Jolinsin, William Johnson, Kallijleisch, June 28-On concurring in Senate amend. Knapp, Laro, Loan, Long, Marcy, McAllister, McClurg McDowell, William H. Miller, Moorhead, James R. Morris, ments, Mr. HOLMAN moved to add this proviso Murrison, Amo6 Myers, John O'Neill, Orth, Rolinson, Ross, to one of them : Scott, Shannon, John B. Steele, Stevens, Sweat, Thayer, Van Valkenburgh, Whaley, Wheeler, Chilton A. White, Joseph

Prorided, That nothing in this act shall impair the right 1. White, Wilson, Winfield-53.

of the States to tax the bonds, notes, and other obligations NAYE-Messrs. Alley, Allison, Ames, Ancona, Arnold,

issued under this act. Ashley. John D. Baldwin, Beaman, Blaine, Boutwell, Am- Which wa brose W. Clark, Freeman Clarke, Cobb, Creswell, Thomas

nas follows:

follow T. Davis, Dawes, Dixon, Drigge, Eckley, Elgerton, Eliot, English, Fenton, Finch, Frank, Ganson, Garfield, Gooch, YEAS-Messrs. William J. Allen, Ancona, Bliss, Brooks, Griswold, 11ale, Ilerrick, Ilooper, John H. liubbard, lul-James S. B:own, Chanler, Coffroth, Cox, Crarens, Dame, burd, Jenckes, Julian, Kelley, Francis W. Kelloux, Orlando Dawson, Denis in, Eden. Edgerton, Eldridge, English, Fiac, Kellogg, Kernan, Knox, Longyear, Marvin, McBride, Sam-Ginsoy, Grider, Griswoid. Harding, Harrington, (harles uel F. Miller, Morrill, Daniel Morris, Leonarul Myers, Noble, M. Harris, Herrick, Holman, Hotcbkies, Hulchins, Finip Norton, Ollell, Charles O'Neill, Patterson, Pendleton, Per Johnson, William Lhnson, Kalifleisch, Kerran, Krapa, ham, Pike, Pomeroy, Price, Pruyn, Rudford, Samuel J. Law, Lazeur, Le Blond, Lmg, Mallory, Marcy, Me Doter! Randall, John H. Rice, Edward H. Rollins, James S. Rol Mckinnry, Middleton, Samuel F. Miller, William H. Mit lins. Schenck, Scofield, Sloan, Smithers, Spalding, William ler, James R. Morris, Morrison, Noble. John O'Neill, Pet G. Steck, Siles, Strouse, Stuart, Upson, Wurd, Elihu B. dleton, Perry, Pomeroy, Pruyn, Radford, Samuel J. Rar Washburne, Willian B. Washbur, Webster, Williains, dall, Robinson, Ross, John B. Seele, William G. Sterle, Benjamin Wood, Fernando Wood-51.

Stiles, Strouse, Stuart, Sweat, Thomas, Tracy, Van Valken

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