8356. TAXES, War and.—
The report of
the Committee of Finance proposes taxes to
the amount of twenty millions. This is a
dashing proposition. But, if Congress pass it,
I shall consider it sufficient evidence that their
constituents generally can pay the tax. No
man has greater confidence than I have in the
spirit of the people, to a rational extent.
Whatever they can, they will. But, without
either market or medium, I know not how
it is to be done. All markets abroad, and all
at home are shut, to us; so that we have
been feeding our horses on wheat. Before the
day of collection, bank notes will be but as
oak leaves; and of specie, there is not within
all the United States, one half of the proposed
amount of the taxes. I had thought myself as
bold as was safe in contemplating, as possible,
an annual taxation of ten millions, as fund for
emissions of treasury notes; and when further
emissions should be necessary, that it would
be better to enlarge the time, than the tax
for redemption. Our position, with respect
to our enemy, and our markets, distinguish
us from all other nations; inasmuch, as a
state of war, with us annihilates in an instant
all our surplus produce, that on which we
depended for many comforts of life. This
renders particularly expedient the throwing a
part of the burdens of war on times of peace
and commerce.—
To James Monroe. Washington ed. vi, 395.
Ford ed., ix, 493.
(M.
Oct. 1814)
