ure of Savannah
and the northward march of General Sherman's army is part of the
familiar military history of the country.

The second session of the 38th Congress convened on the 5th of
December, 1864. It was a busy and active session confined mainly
to appropriations, loan and currency bills. The necessary expenditures
had been so greatly increased by the war that the aggregate amounts
appropriated naturally created some opposition and alarm, but there
was no help for it. As chairman of the committee on finance I did
all I could to reduce the appropriations for civil expenses, but
in respect to military expenditures there could scarcely be any
limit, the amount necessary being dependent upon military success.
The hopeful progress of the war gave encouragement that in a brief
period the power of the Confederate States would be exhausted and
peace would follow. We had, however, to legislate upon the basis
of the continued prosecution of the war, and it therefore became
necessary to increase the revenues in every possible way, and to
provide for new loans. The act approved March 3, 1865, authorized
the Secretary of the Treasury to borrow not exceeding $600,000,000,
and to issue therefore bonds or treasury notes of the United States
in such form as he might provide. This was the last great loan
authorized during the war. An act to provide internal revenue to
support the government was approved on the same day, which modified
many of the provisions of the previous act, but added subjects of
taxation not embraced in previous laws. It especially increased
the taxes on tobacco in its various forms. The 6th section
provided:

"That every national banking association, state bank, or state
banking association, shall pay a tax of ten per centum on the amount
of notes of any state bank or state banking association, paid out
by them after the first day of July, eighteen hundred and sixty-
six."

This tax on state bank circulation was a practical prohibition of
all state bank paper, and before the time fixed for the commencement
of the tax, this circulation entirely disappeared. Additional
duties were placed upon certain foreign importations. Provisions
were also made for the collection in the insurrectionary districts
within the United States of the direct taxes levied under the act
of 1862. During the entire season my labor was excessive, and when
it closed my health and strength were greatly impaired.

CHAPTE