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 Duke University Libraries 
 Letter to chair 
 Conf Pam q#28 
 
Creasttrij lejiartnicnt, C. |, 51. 
 
 RICHMOND, November 21, 1864. 
 Hon. F. S. LYON, 
 
 Chairman Committee Ways <£•• Means, 
 
 C. S. Ho. Heps. : 
 
 SIR, 
 
 The doubts esprei^sed as to the equality of limiting the tax in kind for the support of the currency to three articles 
 only, have had my attentive consideration, and my convictions have not undergone any change. 
 
 Assuming tlie sum of notes to be redeemed at $ 400,000,000, and the proportion of North Carolina, for example, at one-tenth 
 or $40,000,000, the tax in kind for that State would be, in corn, 20,000,000 bushels; and it appears to me that the burthen of the 
 tax is in no degree affected by the mode of payment. Being one tenth of the agricultural income, if paid in kind, it would take 
 from the farmer 20,000,000 busliels of corn; and if paid in money, the value of that quantity. Consequently the State of Virginia, 
 though not taxed in kind on the tobacco crop, if taxed one-tenth of the v.alue in money, would sell that proportion of the crop and 
 paying the money into the Treasury, contribute thereby her equal share to the common burthen. 
 
 To extend the tax to all the present subjects of the tax in kind, would cnl.irge the sinking fund and allay the apprehensions of 
 possible inequality ; but there is something w.anting besides a sinking fund ; we want a measure of value also. Onild we commence 
 the immediate redemption of tho notes in specie, and give to all the assurance of receiving payment on demand, the currency would 
 rise at once to specie value. Could we enter immediately upon the redemption in corn at $ I per bushel, with the assurance of an 
 adequate sujiply to meet all demands, the appreciation, I think, would be nearly as r.-ipid, and the restoration of tho value almost 
 complete. My impressions are that it w-onld be (iiiite complete if the privilege of exportation could be given tc the purchaser. 
 
 The uniformity of quality that belongs to this staple; its character as an article of food ; its universal use; and its simplicity 
 as an article of commerce, cumbine to give it a value more uniform and stable, and more extensively known in our country than that 
 of any other commodity except gold .and silver. For this reason, had the supply of corn been equal to the redemption of the notes 
 within a reasonable time, and the immediate funding of a large proportion not been of such great inifortance, I would have inclined 
 strongly to the use of corn ^lone. To encourage imn)e<Iiate funding, and secure adequate moans for the early redemption of the 
 whole, cotton and wheat were added, but it must he admitted, 1. think, that these additions impair, to some extent, the simplioity of 
 the plan, and the certainty and invariability of the value of the notes. Three classes of certificates, in unerpial proportions and of 
 different value, nnist now be used in lieu of one certificate of uniform value. The necessity however of providing an ailoquate fund 
 rendered this concession unavoid!*ble. But to go further in tliis direction seems unnecessary. 
 
 If tobacco, sugar, rice, hay, hemp, .tc. wore iiitiudueed, the yield of each, and the ratio it bears to the others, would have to be 
 ascertained, the comparative value to be determined, and another class of certificates for each to be issued, in the just proportion it 
 bore to the others. This would greatly complicate the plan and seriously endanger its successful execution, and at the same time 
 define and express with less clearness and precision tiie value of the notes. More I think Would be lost thereby, in that part of the 
 plan which is designed to ilotlie the notes with the attributes and qualify them to perfurm the functions of money, than would be 
 gained by enlarging the sinking fund, wliicli is .ilready anipb-. My impressions are very strong that this view of the subject is 
 correct, and I hope tho deliberatioiis of the Committee may bring them to tho same conclusions. Speedy legislation is of the utmost 
 importance, and tnanimity would be of great value, in inq/ning confidence and securing the co-opeiation of the citizens and the 
 States. The latter may contribute greatly to the success of the measure, and at the same time materially reduce the burthen of 
 the tax. 
 
 Take tho St.tte of North Carolina as an example. Suppose her share of the debt created by the issue of Treasury notes to be 
 Ji 40,000,000, and this measure be not adopted, but by funding or otherwise tho payment of the notes in money be provided for ; in 
 that case her citizens would have ? 40,000,000 to pay in specie at a future day. To raise this sum after the war would require at 
 least 50,000,000 bushels of corn ; while under the proposed plan 20,000.000 bushels would suffice. It offers also other and greater 
 advantages. If she can borrow $2,000,000 in specie and sterling exchange, which her banks may in a great degree supply, she may. 
 in the ratio of 20 for 1, buy up the whole sum of $40,000,000 and reduce her indebtedness from 40 millions to 2 millions, and relieve 
 her citizens from the tax of 20,000,000 bushels of corn. Or in other words, she may purchase 20,000,000 bushels of corn at 10 cents 
 per bushel. It would be the interest of every State, I think, to pursue this course, whether her citizens contributed to the tax in 
 kind set apart for the currency or not. If Virginia, for example, purchase half the certificates for which North Carolina was to 
 provide the means of redemption, the benefit to her citizens would bo precisely the same as that predicated of North Carolina. Each, 
 upon the hypothesis stated, by the expenditure of $1,000,000 in coin would acquire $20,o0d,00t) in certificates. North Carolin.-i 
 would thereby commute a tax in kind of 10,000,000 bushels of coin, and Virginia would levy a tax on other States of 10,000,000 
 bushels of corn. If the value of corn ip the market were $1 a bushel. North Carolina, by laying out § 1,000,000 now, would save 
 $10,000,000; Virginia, by the same means, would make $10,000,000, and reimburse her.seif for a money tax of $ 10,000,000, 
 
 I venture respectfully to submit these reflections to the consideration of the Committee, and remain. 
 
 With sentiments of great respect, 
 
 Your most ob't serv't, 
 
 G. A. TRENHOL.M, 
 
 SiXTclar;/ of Tnasui-y. 
 
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