No. 306.
Mr. Nelson to Mr. Fish.
Mexico, April 8, 1872. (Received April 12.)
Sir: On the 1st instant the secretary of the treasury presented to [Page 413] congress an interesting report on the use which he has made in his own department of the extraordinary faculties granted to the government by congress in December last. As some of the measures decreed by him, such as the new tariff, and the law concerning the use of revenue-stamps, might seem to go beyond the spirit of the grant of ample faculties, which was intended merely to enable the government to suppress the rebellion. Mr. Romero begins by asserting that he has confined himself within the strict letter and spirit of that grant. Quoting from the said law the clause authorizing the executive “to provide resources to impose contributions, and make disbursements for the object of re-establishing and preserving public peace,” he argues that Congress thereby delegated to the Executive its legislative faculties in financial matters, and that any measure tending to increase the federal revenues during the subsistence of the rebellion is clearly within the said “ample faculties.”
Mr. Romero proceeds to say that, in order to augment the federal revenues, two courses were open to him, one being the ancient system of forced loans and contributions, and the other to adopt a new legislation for the purpose of increasing the receipts, by stimulating production, the movement of commerce and the development of the sources of wealth. Between these two systems the Executive could not hesitate to adopt the latter.
At first sight it would seem that the readiest method of obtaining money would be the imposition of new taxes, for which the government had explicit authority by the law of December 1, 1871. Nevertheless, in view of the grave objections to this course, which would have been only partially efficacious, and might have produced disaffections tending to prolong the insurrection, the government deemed it possible to obtain the desired results in another manner, and the result has justified that opinion.
Notwithstanding the heavy additional expenses brought about by the rebellion, the sequestration of the federal revenues by the insurgent States, and the paralyzation of commerce from the same causes, the government has been able to purchase at current prices all effects required for the use of the army, and to pay that army sometimes in advance of the stipulated day.
As it was necessary for the efficiency of the measures adopted that they should establish general rules of permanent application, they have taken the form of laws. In consequence, Mr. Romero submits to Congress the various laws and contracts which he has authorized by virtue of his “extraordinary faculties,” most of which have already been the subjects of special dispatches to the State Department. They include the new tariff of the 1st of January last, the law upon revenue-stamps, the contracts giving subsidies to steamship lines, the law for the free exportation of bullion, that granting freedom of pearl and other fisheries, that upon contributions in the district, the contracts with the various mints, the various measures concerning the collection of duties on goods proceeding from the insurgent States of the north, and that for the establishment of coast-guard steamers.
I am, &c.,