When Mr. Sumner moved the repeal of the Treaty, it was upon the ground that it prevented us from levying a tax on lumber. The Ministers of Canada have at once conceded this, and agree that internal duties may be levied on all they send to us, and thus meet in advance the position of Mr. Sumner. They have shown a desire to revive the Treaty, and to cherish the great commerce between contiguous states. Mr. Derby reports to the State Department that they will extend the free list, and include our manufactures; that they will discourage illicit trade, and repeal all discriminating tolls and duties. The position taken by the Ministers of Canada is eminently wise and judicious. While we may not concede all the privileges they ask, is it our policy to decline to negotiate,—to shut out the materials we require and can command at low rates? Is it wise to propose, as a committee of Congress has done, to reduce a free commerce of seven millions of tons to a traffic in plaster and millstones, and thus jeopard our fisheries and stimulate smuggling? The Canadian Ministers, who visited Washington on business connected with the Treaty, were kindly received by our Executive. They placed the Provinces on the true ground by their proffered concessions and offers to negotiate, and can stand at home upon the ground they took, while their course in retiring after the rebuff they received from the committee was dignified and judicious. When Congress has disposed of reconstruction, and found leisure to attend to revenue and finance; when it sees that we need new materials for our rising manufactures, and require access both by the east and the west to the exhaustless pine forests of Canada,[G] to provincial oats and barley, purchasable at rates lower than those at which the West can afford to send them, and to coal on coasts which Nature designed for the supply of the gas-works and steamers of New England; when it finds proclamations issued excluding our fishermen from the waters to which the mackerel resort,—then Congress at last will doubtless be willing to resume negotiations, and to give to us coal, wood, butter, grain, fish, lumber, and horses at reasonable prices.
Eliminating from the summary of the Commission the items which are condemned by their Report, we have the following result:—
REVENUE LIST OF COMMISSIONERS, EXCLUDING TAXES ON INCOME AND TRANSPORTATION.
| Customs, | $130,000,000 |
| Excise on Spirits, Tobacco, Malt Liquors Cotton, Refined Oil, Spirits of Turpentine, and Rosin, | 108,000,000 |
| Licenses, | 15,000,000 |
| Salaries, | 2,000,000 |
| Banks, | 15,000,000 |
| Stamps, | 20,000,000 |
| Sales, Legacies, &c., | 7,000,000 |
| Add Tax on Dividend and Coupons, | 10,000,000 |
| Miscellaneous, | 21,000,000 |
| ————— | |
| Total | $328,000,000 |
| Amount deemed necessary by the Secretary of the Treasury to meet Interest and Expenses of Government annually, | 284,000,000 |
| ————— | |
| Surplus, | $44,000,000 |
We thus deduce from the estimate of the Secretary and the conclusions to which we are led by the Commission a surplus revenue or sinking fund of $44,000,000, and this, too, after discontinuing all taxes on production, income, and transportation, and liberating industry from the trammels imposed by war. In addition, we may expect from cotton, whenever the crop exceeds two millions of bales, a further revenue from the five-cent tax, while the income from customs, which we rate at $130,000,000, has actually been increased since June, 1865, to the amount of $58,000,000 more.
These results, achieved by the country while emerging from the smoke of the battle-field, and disbanding its troops and placing army and navy on a peace footing, are in the highest degree reassuring. What is there, then, to prevent the nation's prompt return to specie?
Our chief bankers estimate their annual remittances to American citizens for foreign travel and residence abroad at less than five millions yearly. Our exports again exceed our imports, and foreign exchange is at 7-1/4 in gold, or two per cent below par. An emigration, chiefly from Germany, greatly in excess of any former year is predicted. It has been well ascertained that each emigrant brings, on the average, seventy dollars in funds to this country, and these funds alone will suffice to meet our interest abroad. What period could be more auspicious for a gradual return, say in six months, to specie? Of course there would be some decline in merchandise, but the loss would fall on declining stocks, often sold in advance, and would not reach stocks in bond, the price of which is to be paid in specie. The improvident might suffer a little; but when the first shock was past, would not a strong impulse be given to industry? Would not enterprise be at once directed to the erection of the houses, factories, ships, steamers, locomotives, and railways which our growth demands? Would not the community immediately seek to renew their wardrobes and furniture, now worn out or exhausted by the war? Our mutual friend Mr. Smith might then meet his friend the coal-merchant with a smile, and cheer himself with his open fireplace, putting away his stifling but economic stove; he might postpone his retirement from the three-story brick to the wooden two-story in the suburbs, eat his roast beef again on Sunday, and regale himself with black coffee after dinner, without a thought of the slow but sagacious Dutchman, who is transferring at his expense a national debt of $800,000,000 from the sea-girt dikes of little Holland to the populous and fertile isles and spice groves and coffee plantations of Sumatra and Java.
FOOTNOTES:
[F] Report of the United States Revenue Commission to the Secretary of the Treasury, January 29th, 1866.