C0NFEDERATE\STATE3 OF AMERICA,
Treasury Department,
Richmond, July 24th, 1861..
Hon. Howell Cobb,
President Congress, C. S. A.,
Sir :
In conformity with the requirement of Congress, I
have endeavored to procure information from the various
State Governments in regard to the value of the property,
the revenue system, and the amount collected during the last
fiscal year in each of the Confederate States. The revenue
system adopted in the several States is so difficult that it is
impossible to reduce it into one form. Even the valuation
of lands in some of them is made upon an arbitrary rule,
without reference to their real value. Some of the States
levy a poll tax on each slave; others value them, and impose
an ad valorem tax. The subjects of taxation in each State
are so various that they can be classified only by rejecting
all except the principal items, which are set forth in the
accompanying schedule. I have, therefore, concluded that
I would best promote the design of Congress by ascertaining
as nearly as possible the value of the general items thus
classified, and leaving out the various subjects of which no
return is made in many of the States. I have accordingly
caused to be compiled a table exhibiting the value of the
principal subjects of taxation in the several States.
It is proper to add that many of these results are only
approximations. In South Carolina no return of the value
of lands has been made since 1840, and I have assumed an
increase of 75 per cent, on that valuation as the present
value. Neither is there iu several other States any valua-
tion of negroes, and in others where negroes are valued, only
those within certain ages are included. I have, therefore,
been obliged to resort to the census for the number, and to
assume a general standard of valuation, which is set down
at say $600 per head.
The property set down under the head of merchandise is
also irregular. In some of the States the stock of merchan-
dise on hand is valued, and in others the sales only are
returned; and in others again, the sales are distributed into-
sales by auction, by private venders, and under license.
2
It appears evident from this statement that Congress will
not be able to adopt a plan of taxation resting upon the
revenue system of the States, but will be compelled to adjust
for itself a scheme.
If a proportion were established by which the relative
amount to be paid by each State could be adjusted, then a
simple per centage upon the last tax paid by each State
would offer the simplest of all modes of rating the tax. The
State machinery could then be invoked, and the subjects of
taxation having already been adjusted according to the wishes
of each State, the tax would assume the form to which its
citizens had already been accustomed. Under the perma-
nent Constitution the ratio for the payment of direct taxes
is adjusted in proportion to numbers, and if that ratio be
applied by Congress to the tax now to be raised under the
Provisional Government, it will then only be requisite to
ascertain the amount of tax to be raised.
It is feared, however, that a direct tax raised upon this
basis will impose too heavy a burthen upon those States
which are least able or willing, under existing circumstances,
to pay large sums. The Provisional Constitution leaves
Congress free to levy taxes in any mode which may be
deemed expedient, and I would respectfully suggest the
expediency of raising the amount required by an ad valorem
tax upon property.
We have not in our possession the returns of the last
census; but from a general statement made by the Secretary
of the Treasury of the United States, it appears that the
gross value of property in the States of this Confederacy is
$5,202,176,109. A tax of only fifty cents on each hundred
dollars of property would raise twenty-six millions of dollars.
This, of course, includes property of all kinds, and if, in
each State, distinct returns has been made upon the same
basis, there would be little difficulty in assessing the tax.
But, as has already been stated, no such returns exist, and
the attempt to procure them would, in those States where
they have never been made, produce much vexation and dis-
content. A better course would seem to be to disregard all
minor subjects of taxation, and impose the tax by a per
centage upon those articles which are generally owned in all
the States, and are considered by us as proper to be taxed.
The schedule herewith furnished gives sufficient informa-
tion to attain this end. It brings within the scope of the
taxing power property valued at $4,632,160,501, leaving
3
out about six hundred millions as the value of non-enume-
rated articles. As this last amount includes articles which
are probably distributed in equal portions over the different
States, no inequality or injustice will result from leaving it
free of tax; and it simply remains to ascertain the amount
of tax required for the use of the Government, and to create
the machinery requisite to collect it. This machinery need
not be different from that used by the State Governments,
unless some of their laws forbid the use of their State
officers. It is only necessary to appoint assessors and col-
lectors in the various districts in the manner indicated by
previous acts of Congress. In respect to the amount of tax
to be raised, the events which have occurred since the
adjournment of Congress require a larger Sum than was
then supposed. At least twenty-five millions of dollars
ought to be raised for the wants of the Government, and to
sustain its credit in taking up the loans which will become
necessary. There should be a supply of means abundantly
sufficient to pay the interest and part of the principal of
such loans at stated periods. To raise this amount, a tax
of fifty-four cents per cent, on the property set forth in the
schedule will be sufficient. The property selected for such
taxation is classified under the following heads :
1.—Slaves.
2.—Real Estate.
3.—Merchandize.
4.—Bank Stocks.
5.—Railroad and other Stocks.
6.—Money at Interest.
It is not improbable that ^Congress may prefer that differ-
ences should be made in the rate assessed upon these various
items.
1. As to slaves. These constitute the chief item of value
in Southern property, and may themselves be considered as
indicating an ability in the owner to pay. They never
belong to persons who do not own other property; and inas-
much as the scheme of taxation recommended exempts much
of this other property, the amount assessed upon slaves may
properly be so much larger. The origin and character of
the war in which we are engaged would seem to make this
species of property more particularly bound for its support.
I assume, therefore, that it can bear the highest rate of tax.
2. Real estate offers the next great subject of taxation.
This naturally divides into town lots and country property.
4
The former are in many of the States subject to a higher
rate of taxation; and in time of war the reasons for this
increase are quite as strong as in time of peace. It is not
practicable, however, to present a separate estimate of town
property, because in four of the States no separate return is
made of town lots. If it be deemed expedient, therefore, to
vary the rate of taxation, the product of the tax will be
conjectural. The possession of land is not as distinct an
indication of ability to pay, as the ownership of negroes.
Much of it is unproductive, and where it is cultivated by
the owner himself, a state of war calls him away from its
•cultivation. It would seem proper, therefore, to exonerate
proprietors under a certain amount from the tax.
The ownership of a town lot is, however, generally a bet-
ter indication of ability to pay, than the ownership of mere
land. The amount of taxes usually paid by towns for mere
^corporation purposes, clearly exhibits that ability; and when
we consider the exposure of towns to the dangers and cas-
ualties of war, and the inducements they offer to the inva-
ding army, it seems proper that they should bear a heavier
burden than the country at large.
3, For somewhat similar reasons, merchandise on hand
for sale in the hands of merchants, should pay an increased
rate of taxation. The merchant, too, has the ability to re-
lieve himself by casting the tax upon the consumer. It will
be necessary to assess the tax on the stock on hand at the
time of the assessment, in order to attain the same basis of
valuation. The want of proper returns makes it difficult
to set down in figures the probable amount of the proceeds
of this tax; and besides this, the merchandize now for sale
in the country, is probably greatly less in quantity than at
any period referred to in the tables.
4. The remaining items of stocks and money at interest,
present a subject more difficult to deal with. Many of the
railroad and canal stocks produce but little revenue to the
owners, and yet of all the items of property within a coun-
try, the stocks and money at interest depend most upon the
stability and good faith of the Government. The owners
have nothing in possession but script or some instrument in
writing, which, through the instrumentality of Government,
secures to them values which extend to millions of dollars.
It seems highly proper, therefore, that when the existence
of the Government is threatened, these stocks should con-
.tribute to the common defence an amount equal in propor-
5
tion to tlie visible landed property of the country; and, for
the same reason that the tax on land is laid upon the capi-
tal instead of the income, it is proper that it should be laid
upon the capital stock of these corporations.
On the other hand, it is to be considered that the banks
and railroad companies have in general exhibited a spirit of
liberal and generous patriotism. The railroad companies
have been content to work for the Government at half price,
and to take pay in Confederate Bonds. The banks have
offered their means and credit freely to the country, and are
entitled to the kindliest considerations of the Government.
The stocks, therefore, of these various corporations should be
put on the same footing with the general property of the
citizens.
The only additional aid which I can offer to the delibera-
tions of Congress, is contained in the tables herewith sub-
mitted, which show the difference produced in each State,
as one or the other mode of assessing the tax, may be
adopted.
All of which is respectfully submitted.
C. G. MEMMINGER,
Secretary of Treasury„
TAXATION.
STATES.
Value of all Real
tstate, includ'g
Town Lots.
Value
of Town L'ts
Alone
Number
of
Negroes.
495,473
109,065
63 809
467 461
312 186
479,607
82* 377
407,185
2-7,1 2
184,956
495 826
8,571,057
Value
of
Negroes.
Capit'l Invest-
ed in Trade,
Mdze., Etc.
Bank
Capital.
Railroad
and*
Other Stocks.
Money
at
Interest.
Total.
Alabama,
Arkan as,
Fli ida
Geor ia,
Louisiana,
Missi-si pi,
North Carolina,
South Ca olina,
Tennessee,
Texas,
V irginia,
143,765 708
68 6< 2 895
18.592,933
196 904,370
210 356,827
143,000,0(10
97,77 ,975
121,833,873
242 591 *51
14o,2b7,740
374,989,8b8
§
5,217,689
§
35,139,415
§
§
12 050 373
«i,8a«,878
29,770,858
1. ,982,980
59,563,667
261,283,800
65 439,o00
38 2 o* ,4' 0
280 476,600
187, ;11,600
2-7,764,200
197,026 200
244 311,000
172,267,200
1 (0.973,600
297,495 600
41,362 517
2,864,' 59
2.002 568
15,577 193
86,657 729
19,213,370
* 20 000 000
26,388 861
* 25 000,000
19,256,500
48,489,131
5,000,000
881.263
9 028,078
24,436 866
436,344
6 .626 478
14,000,000
8,131 762
16,707,775
20,975,639
142,000
6 368,699
24,000,000
16,073,"70
9.024,444
13.698,469
19,000,000
27,348,141
7,578 943
47,000,000
22,578,370
1,334,6 I
2,121,069
107 336 .-58
5,701,493
12,198 9 4
* 8,000,000
* 15 000,000
* 10,00 ,000
4,000 000
10 147,367
491.966,034
138,442 085
67,751,9: 2
f 83,322 499
480 597,285
471,677 812
843,124 122
440,033,734
485,838 954
282,076 783
794,829,761
1,758,233,060
191,068,855
2,142,634,200
256,851,928
84,808,566
191,209,605
198,418,142
4,632,160,501
* Estimated.
§ No means of separating the Talue of Town Lots from the aggregate value of " Real Estate, including Town Lots."
STATEMENT
Exhibiting the amount payable by each State, on the value of property within each, at the rate of 54 cents on the
$100, and the amount payable by each State upon the basis of the number of Representatives to which each is
entitled, in order to raise $25,000,000; exhibiting also the difference in each, if the tax is levied according to the
number of Representatives,instead of the value of property:
States.
Alabama, - -
Arkansas, - -
Florida, - - -
Georgia, - -
Louisiana, - -
Mississippi,
North Carolina,
South Carolina,
Tennessee, - -
Texas, - - -
Virginia, - -
Value of Property.
Number of Representa-
tives.
jAmount of Taxes pay-
i able at the rate of 54
' cts. on the $100.
494,966,034
9
2,672,816
138,442,Of 5
4
747,587
67,751,932
2
365,*60
633,322,499 '
10
3,419,941
480,597,285
6
2,505,225
471,677,312
7
2,547,057
343,124,122
10
1,852,870
440,033,734
6
2,376,182
4*5,338,954
11
2,620,830
282,076,783
6
1,523,214
794,829,761
16
4,292,080
4,632,160,501
87
25,013,662
&
cs H ®"
CI, C 01
00 •rs M
® "£ ^
M © ®
o
O .
+3 o 73
s ®al
a - el
2,586,207
1,149,426
574,714
2,873,563
1,724,138
2,011,495
2,873,563
1,724,138
3,160,919
1,724,138
4,597,699
25,000,000
* Sf®
® U ~
O O ®
©
S3-®
a
© t3 '
a ■
eg >>
-u O w
<« s ft
® S o
.a
S
Gain.
86,609
546,378
871,087
535,562
652,044
Loss.
401,839
208,854
1,020,693
540,089
200,924
305,619