penditures of the Government, both expedient and necessary. The general provisions of the bill submitted to me, Beem to me well adapted to the end proposed. There are, however, some points which may, perhaps, be usefully

amended.

prohibits the circulation of bank notes of a less denomination than five dollars in the District of Columbia," has received my attentive consideration, and I now return it to the Senate, in which it originated, with the following objections:

The provision making United States notes a legal tender has 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 1. The bill proposes to repeal the existing to this provision my reflections have conducted me to the same conclusions they have reached. It is not unknown legislation, prohibiting the circulation of bank to them that I have felt, nor do I wish to conceal that I now notes of a less denomination than five dollars 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, mitting the issuing of such bills by banks not at present impossible, in consequence of the large expendi- now legally authorized to issue them. In my tures entailed by the war, and the suspension of the banks, judgment, it will be found impracticable, in to procure sufficient coin for disbursements; and it has; the present condition of the currency, to make therefore, become indispensably necessary that we should resort to the issue of United States notes. The making such a discrimination. The banks have generthem a legal tender might, however, still be avoided if the ally suspended specie payments; and a legal willingness manifested by the people generally, by railroad companies, and by many of the banking institutions, to sanction given to the circulation of the irrereceive and pay them as money in all transactions were deemable notes of one class of them, will almost absolutely or practically universal; but, unfortunately, there certainly be so extended, in practical operation, are some 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 unnecessary depreciation of the notes, but to establish ized 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 support to the Government, and in favor of those who do not. Such discriminations should, if pos- become a law, will certainly and greatly deteriorate to the serious injury of honest trade and honest labor.

sible, be prevented; and the provision making the notes a legal tender, in a great measure at least, prevents it, by putting all citizens, in this respect, on the same level 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 these notes. This security can be found, in my judgment, by proper pro- it is peculiarly the duty of the National Govvisions for funding them in interest bearing bonds, by well- ernment to secure to the people a sound circuguarded legislation authorizing banking associations with lating medium. This duty has been, under circulation based on the bonds in which the notes are funded, and by a judicious system of adequate taxation, which existing circumstances, satisfactorily performwill not only create a demand for the notes, but-by secured, in part at least, by authorizing the issue of ing the prompt payment of interest-raise and sustain the credit of the bonds. Such legislation, it may be hoped, will divest the legal lender clause of the bill of injurious tendencies, and secure the earliest possible return to a sound currency of coin and promptly convertible notes. I beg leave to add that vigorous military operations and the unsparing retrenchment of all necessary expenses will

also contribute essentially to this desirable end.

United States notes, receivable for all Government dues except customs, and made a legal tender for all debts public and private, except interest on the public debt. The object of the bill submitted to me, namely, that of providing a small note currency during the present suspension, can be fully accomplished by authorizing the issue-as part of any new emission of United States notes made necessary by the circumstances of the country-of notes of a

During the pendency of this question, 1862, January 15-Mr. CORNING offered this similar character, but of less denomination joint resolution:

Messrs. Allen, Norton, Robinson, Shiel, Voorhees, Wood-6.
The following Democrats voted aye:
Messrs. Ancona, Joseph Baily, Charles J. Biddle, G. H.
Browne, C. B. Calvert, G. T. Cobb, E. Corning, S. S. Cox, J.
W. Crisfield, 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. Noble, J. W. Noell, R. H. Nugen, Odell, G. H. Pen-
dleton, N. Perry, J.S. Rollins, W. P. Sheffield, J. B. Steele,
W. G. Steele, C. L. Vallandigham, C. Vibbard, Wadsworth,
E. Ward, C. A. Wickliffe, G. C. Woodruff, H. B.Wright-38.
January 17-The Senate passed the resolu-
tion-yeas 30, nays 1, (Mr. Powell.)

SMALL BANK NOTES-VETO MESSAGE.

To the Senate of the United States:

than five dollars. Such an issue would answer all the beneficial purposes of the bill; would save a considerable amount to the treasury, in interest; would greatly facilitate payments to soldiers and other creditors of small sums; and would furnish to the people a currency as safe as their own Government.

Entertaining these objections to the bill, I feel myself constrained to withhold from it my approval, and return it for the further considera

tion and action of Congress.

June 23, 1862.

ABRAHAM LINCOLN.

State Taxation.

First Session, Thirty-Eighth Congress. June 22-The loan bill before the House in Committee of the Whole, and the question being on the first section, authorizing a loan of $400,000,000, closing with this clause:

And all bonds, Treasury notes, and other obligations of the United States shall be exempt from taxation by or

The bill which has passed the House of Rep-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.

Mr. POMEROY move this substitute for the second section of the oill:

SEC. 2. And be it furthe enacted, That the Secretary of the Treasury may issue, "pon the credit of the United States, bonds of any denomination not less than $100, payable in lawful money, theee years from the date thereof, and bearing interest not exceeding eight per cent. per annum, payable semi-annually in lawful money, and may receive at par therefor the lawful money of the United States, Treasury notes, certificates of indebtedness, or certificates of deposit issued under any act of Congress. And the Secretary of the Treasury, in addition to the total amounts of bonds authorized by the first and second sec

Mr. KERNAN moved this substitute for Mr. tions of this act, shall issue at par, in redemption of any HOLMAN'S amendment:

Mr. STEVENS offered this substitute for the shall the total amount of United States notes issued or to bill:

NAYS-Messrs. Alley, Allison, Ames, Ancona, Arnold, Ashley, John D. Baldwin, Beaman, Blaine, Boutwell, Ambrose W. Clark, Freeman Clarke, Cobb, Creswell, Thomas T. Davis, Dawes, Dixon, Driggs, Eckley, Edgerton, Eliot, English, Fenton, Finck, Frank, Gunson, Garfield, Gooch, Griswold, Hale, Herrick, Hooper, John II. Hubbard, Hulburd, Jenckes, Julian, Kelley, Francis W. Kellogg, Orlando Kellogg, Kernan, Knox, Longyear, Marvin, McBride, Samuel F. Miller, Morrill, Daniel Morris, Leonard Myers, Noble, Norton, Odell, Charles O'Neill, Patterson, Fendleton, Per-Johnson, William Johnson, Kalbfleisch, Kernan, Knapɔ, ham, Pike, Pomeroy, Price, Pruyn, Radford, Samuel J. Randall, John H. Rice, Edward II. Rollins, James S. Rollins, Schenck, Scofield, Sloan, Smithers, Spalding, William G. Steele, Stiles, Strouse, Stuart, Upson, Ward, Ellihu B. Washburne, William B. Washburn, Webster, Williams, Benjamin Wood, Fernando Wood-81.

Messrs. Allen, Ancona, Beaman, Burnett, Cox, Cravens, Crittenden, Dunlap, English, Grider, Haight, Harding, Holman, Jackson, Johnson, Law, Logan, Mallory, May, Menzies, Nor--15. ris, Noble, Norton, Odell, Pendleton, Reid, James S. Rollins, Shiel, Smith, Trowbridge, Vallandigham, Vibbard, Voorhees, Wadsworth, Ward, Webster, Chilton A. White, Woodruff, Wright-39.

Same day, it passed the Senate-yeas 34, nays 8, (Messrs. Breckinridge, Bright, Johnson of Missouri, Kennedy, Latham, Polk, Powell, Saulsbury.)

THE INTERNAL REVENUE ACT OF 1862. Second Session, Thirty-Seventh Congress. 1862, April 8-The House passed the bill to provide internal revenue, support the Government, and pay interest on the public debt-sachusetts-10. yeas 126, nays 15. The NAYS were

Mr. SUMNER'S amendment was then rejected

Messrs. William Allen, George H. Browne, Buffinton, Cox,-yeas 14, nays 22, as follows:
Kerrigan, Knapp, Law, Norton, Pendleton, Richardson,
Shiel, Vallandigham, Voorhees, Chilton A. White, Wickliffe
-15.

June 6—The bill passed in the Senate-yeas 37, nay 1, (Mr. Powell.)

years of age," which was agreed to, and the amendment, as amended, was then rejectedyeas 17, nays 23, as follows:

TAXES IN INSURRECTIONARY DISTRICTS, 1864.
IN SENATE.

June 27-The bill passed the Senate with ont a division.

July 2-It passed the House without a division.

YEAS-Messrs. Anthony, Chandler, Clark, Fessenden, Foot, Grimes, Harlan, Howard, Howe, King, Morrill, Simmons, Sumner, Trumbull, Wade, Wilkinson, Wilmot-17. NAYS-Messrs. Bayard, Browning, Carlile, Cowan, Davis, Dixon, Doclittie, Foster, Hale, Harris, Kennedy, Lane of Indiana, Latham, Mc Dougall, Nesmith, Powell, Rice, Saulsbury, Stark, Ten Eyck, Willey, Wilson of Mass., Wright The National Currency Act* of 1863.

-23.

First Session, Thirty-Eighth Congress.

INTERNAL REVENUE ACT OF 1864.

April 28-The House passed the act of 1864 -yeas 110, nays 30. The NAYS were:

Messrs. James C. Allen, William J. Allen, Ancona, Brooks, Chanler, Cor, Dawson, Venison, Eden, Eldridge, Finch, Harrington, Benjamin G. Varris, Herrick, Philip Johnson, William Johnsm, Knapp, Law, Le Blond, Long, Marcy, Mc Dowell, McKinney, James K. Morris, Morrison, Noble, John O'Neill, Pendleton, Perry, Robinson, Ross, Stiles, Strouse, Stuart, Voorhees, Ward, Chilton A. White, Joseph W. White, Fernando Wood-39.

June 6-The Senate amended and passed the bill--yeas 22, nays 3, (Mesars. Davis, Hendricks, Powell.)

The bill, as finally agreed upon by a Committee of Conference, passed without a division.

TARIFF ACT OF 1562.

Second Session, Thirty-Seventh Congress.
IN HOUSE.

1862, July 1-The House passed, without a division, a bill increasing temporarily the duties on imports, and for other purposes.

July 8-The Senate passed it without a division.

THE TARIFF ACT OF 1864.

Third Session, Thirty-Seventh Congress.

gress:

To the Senate and House of Representatives:

I have signed the joint resolution to provide for the immediate payment of the army and navy of the United States, passed by the House of Representatives on the 14th and by the Senate on the 15th instant.

The joint resolution is a simple authority, amounting, however, under existing circumstances, to a direction to the Secretary of the Treasury to make an additional issue of $100,000,000 in United States notes, if so much money is needed, for the payment of the army and navy.

My approval is given in order that every possible facility may be afforded for the prompt discharge of all arrears of pay due to our soldiers and our sailors.

While giving this approval, however, I think it my duty to express my sincere regret that it has been found neces sary to authorize so large an additional issue of United States notes when this circulation, and that of the sus pended banks together, have become already so redundant as to increase prices beyond real values, thereby augmenting the cost of living to the injury of labor, and the cost of supplies to the injury of the whole country.

It seems very plain that the continued issues of United States notes, without any check to the issues of suspended

June 4-The House passed the bill-yeas 81, banks and without adequate provision for the raising of nays 28. The NAYS were:

Messrs. James C. Allen, Bliss, James S. Broom, Cox, Edger ton, Eldridge, Finck, Grider, Harding, wington, Chas. M. Harris, Herrick, Holman, Hutchins, Blond, Long, Mallory, Marcy, McDowell, Morrison, Nets, Pendleton, Perry, Pruyn, Ross, Wadsworth, Chilton A. White, Joseph W. Wuite-28.

June 17-The Senate passed the bill--yeas 22, nays 5, (Messrs. Buckalew, Henicks, McDougall, Powell, Richardson.)

TAXES IN INSURRECTIONARY DISTRIOS, 1862. Second Session, Thirty-Seventh congress. 1862, May 12-The bill for the collection of taxes in the insurrectionary districts passed the Senate-yeas 32, nays 3, as follows:

YEAS-Messrs. Anthony, Browning, Chandler, Clark,
Davis, Dixon, Doolittle, Fessenden, Foot, Futer, Harlan,
Harris, Henderson, Howe, King, Lane of Indiana, Lane of
Kansas, Latham, McDougall, Morrill, Ness.th, Pomeroy,
Rice, Sherman, Sumner, Ten Eyck, TrumbuJ. Wade, Wil-
kinson, Willey, Wilson of Massachusetts, Wright-32.
NAYS-Messrs. Howard, Powell, Saulsbury .

money by loans, and for funding the issues so as to keep them within due limits, must soon produce disastrous consequences. And this matter appears to me so important that I feel bound to avail myself of this occasion to ask the especial attention of Congress to it.

That Congress has power to regulate the currency of the country can hardly admit of a doubt; and that a ju dicious measure to prevent the deterioration of this cur rency, by a reasonable taxation of bank circulation or otherwise, is needed, seems equally clear. Independently of this general consideration, it would be unjust to the people at large to exempt banks enjoying the special privilege of circulation from their just proportion of the public

burdens.

In order to raise money by way of loans most easily and cheaply, it is clearly necessary to give every possible sup port to the public credit. To that end, a uniform currency, in which taxes, subscriptions to loans, and all other ordinary public dues, as well as all private dnes, may be paid, is almost if not quite indispensable. Such a currency can be furnished by banking associations, organized under a general act of Congress, as suggested in my message at the beginning of the present session. The securing of this cir culation by the pledge of United States bonds, as therein suggested, would still further facilitate loans, by increasing the present and causing a future demand for such bonds.

In view of the actual financial embarrassments of the Government, and of the greater embarrassments sure to come if the necessary means of relief be not afforded. I feel that I should not perform my duty by a simple an

May 28 The bill passed House- yeas 98, nouncement of my approval of the joint resolution which пЯуs 17.

The NAYS were :

Messrs. Biddle, Calvert, Cravens, Johnson, Kerrigan, Law,
Mallory, Menzies, Noble, Norton, Pendleton, Pur, Francis
Thomas, Vallandigham, Ward, Wickliffe, Wood-17.

The Democrats who voted AYE were:
Messrs. Ancona. Baily, Cobb, English, Haight. Holman, Leh-
man, Ode'l. Phelps, Richardson, James S. Rollins, Sheffield,
Smith, John B. Stele, Wm. G. Steele-1.

proposes relief only by increasing circulation, without expressing my earnest desire that measures, such in substance as those I have just referred to, may receive the early sanction of Congress.

By such measures, in my opinion, will payment be most certainly secured, not only to the army and navy, but to all honest creditors of the Government, and satisfactory provision made for future demands on the Treasury, ABRAHAM LINCOLN.

January 17, 1863,

THE FINANCES.

NAYS-Messrs. Carlile, Collamer, Cowan, Davis, Dixon, Foot, Grimes, Henderson, Hicks, Kennedy, King, Latham, McDougall, Powell, Rice, Richardson, Saulsbury, Trumbull, Turpie, Wall, Wilson of Missouri-21.

fifty, one hundred, five hundred, and one thou-
sand dollars-yeas 76, nays 54, as follows:

February 20-The bill passed-yeas 78, nays Grinnell, Griswold, Hale, Hotchkiss, Asahel W. Hubbard, 64, as follows:

YEAS-Messrs. Aldrich, Alley, Ashley, Babbitt, Beaman, Bingham, Jacob B. Blair, Blake, Buffinton, Calvert, Camp bell, Casey, Chamberlain, Clements, Colfax, Conway, Co vode, Cutler, Davis, Delano, Dunn, Edgerton, Eliot, Ely, Fenton, Samuel C. Fessenden, Thomas A. D. Fessenden, Fisher, Frank, Goodwin, Granger, Hahn, Haight, Hickman, Hooper, Hutchins, Julian, Kelley, Francis W. Kellogg, William Kellogg, Lansing, Leary, Lovejoy, Low, McIndoe, McKean, McPherson, Marston, Maynard, Moorhead, Anson P. Morrill, Noell, Olin, Patton, Timothy G. Phelps, Potter, Alexander H. Rice, John H. Rice, Sargent, Sedgwick, Segar, Shanks, Shellabarger, Sherman, Sloan, Spaulding, Stevens, Trimble, Trowbridge, Van Horn, Van Wyck, Verree, Wall, Wallace, Washburne, Albert S. White, Windom, Worcester-78. NAYS-Messrs. William Allen, Anema, Baily, Baker, Baxter, Biddle, Cobb, Frederick A. Conkling, Roscoe Conkling, Cox, Cravens, Crittenden, Dawes, Edwards, English, Gooch, Grider, Gurley, Hall, Harding, Harrison, Holman, Horton, Johnson, Kerrigan, Knapp, Law, Lazear, Loomis, Mallory, May, Menzies, Justin S. Morrill, Morris, Nixon, Noble, Norton, Nugen, Odell, Pendleton, Perry, Pike, Pomeroy, Porter, Price, Robinson, James & Rollins, Sheffield, Shiel, John B. Steele, William G. Steele, Stiles, Stratton, Benjamin F. Thomas, F. Thomas, Vallandigham, Wads worth, Wheeler, Whaley, Chilton A. White, Wickliffe, Wilson, Woodruff, Wright-64.

YEAS-Messrs. Anthony, Chandler, Clark, Collamer, Con-Jenckes, Julian, Kasson, Kelley, Francis W. Kellogg, Loan, ness, Dixon, Doolittle, Fessenden, Foot, Foster, Hale,' Harlan, Howard, Howe, Johnson, Lane of Indiana, Lane of Kansas, Morgan, Morrill, Pomeroy, Ramsey, Sherman, Sprague, Sumner, Ten Eyck, Trumbull, Van Winkle, Wilkinson, Willey, Wilson-30.

Longyear, Marvin, McBride, McClurg, Morrill, Daniel Mor-
ris, Leonard Myers, Charles O'Neill, Perham, Price, Alexan-
der H. Rice, Edward H. Rollins, Schenck, Shannon,
Washburne, William B. Washburn, Wilder-56.
Smithers, Spalding, Stevens, Thayer, Upson, Ellihu B.

MR. STEVENS'S SUBSTITUTE.

Upon these and other amendments being adopted, Mr. STEVENS offered a substitute for the whole bill, which he explained as differing from the amended bill in these respects only: Pending the consideration of this bill, The substitute provides for a uniform rate of interest at seven per cent., and withdraws these national banks from April 6- A section was adopted, authorizing the issue to those banks of notes of the denomi-State taxation and leaves them to be taxed by the national nations of one, two, three, five, ten, twenty, Government.