e general purpose was to secure
as low a rate of interest as possible, to distribute the securities
among the largest number of persons possible, to provide the best
mode, time and terms for redemption, and to put the securities in
such form as to be used as a currency. No one can question the
wisdom of the management of the public debt by Secretary Chase.

The origin and development of the present system of internal taxes
must be interesting to every student of finance. The policy of
the government had been to confine, as far as possible, national
taxes to duties on imports, and, in ordinary times, this source of
revenue, exclusively vested in the United States, together with
the proceeds of the sale of public lands, was ample to defray the
current expenses of the government. During and shortly after the
War of 1812 resort was had to direct taxes apportioned among the
states respectively, and to internal taxes authorized by the
constitution under the name of excises, but the necessities of the
treasury becoming more urgent, and the reliance on the public credit
becoming more hazardous, Congress, at the special session which
convened in May, 1813, determined to lay the foundations of a system
of internal revenue, selecting in particular those subjects of
taxation which would be least burdensome. These taxes were at
first limited to one year, but were extended from time to time, so
that they acquired the name of "war taxes." A direct tax of
$3,500,000 was laid upon the United States, and apportioned among
the states respectively for the year 1814. Taxes were imposed on
sugar refined in the United States, on carriages, on licenses to
distillers of spirituous liquors, and other forms of internal
production. It was estimated that the internal taxes and the direct
tax would yield $3,500,000. For the fiscal year ending June 30,
1815, internal taxes yielded $5,963,000. In 1816 they yielded
$4,396,000. In 1817 they yielded $2,676,000, after which there
was no revenue from internal taxes except from the collection of
arrears, amounting in 1818 to $947,946, the law providing for such
taxes having expired by limitation. A comparison between the
receipts from this source then and the receipts subsequently derived
from internal revenue, is a significant indication of the difference
in population and wealth between 1812 and 1862.

When the Civil War commenced and the necessity of a large increase
of revenue became appar