The State of Georgia has substantially paid in the balance due by her, and the State of South Carolina has paid the whole amount due by her into the Treasury, in the form of 6 per cent. call certificates. But as the final settlement has not yet taken place, the certificates have not as yet been delivered up and the account is not yet closed. The returns from the States of Alabama, Louisiana, Mississippi, Arkansas, and Texas have not yet been rendered int complete. The two former States have, nevertheless, paid their taxes in advance.
From the documents furnished it appears that the States of North Carolina and Alabama have overpaid their respective assessments, and I will ask leave to submit an estimate of the amounts to be refunded them as soon as the complete returns shall be received.
The collection of the war tax has presented several difficulties, which it is proper that Congress should have in view whenever a further tax shall be levied. These difficulties are presented together in a report from the chief clerk of the War-Tax Office, a copy of which is herewith respectfully submitted. It is also proper to state that by a judgement of the district judge of South Carolina money invested in State bonds has been excepted from the war tax. An appeal has been ordered, the effect of the judgement will be to release from any future tax all moneys invested in this form in South Carolina, or in any other State wherein the district judge may hold the same opinion.
Since the last meeting of Congress I have appointed three new places of deposit for public moneys-one at Galveston, Tex., one at Knoxville, Ten., and one at Augusta, Ga.
The assistant treasurer at New Orleans has removed his office for the time to Jackson, Miss., and the depositary at Mobile has made a temporary removal to Montgomery, Ala.
All of which is respectfully submitted.
C. G. MEMMINGER,
Secretary of the Treasury.
TREASURY DEPARTMENT, WAR-TAX OFFICE,
August 1, 1862.
Hon. C. G. MEMMINGER,
Secretary of the Treasury:
SIR: Believing that the continuance of the war and the exigencies of the country arising therefrom will impose upon Congress the duty of providing for another war tax, I feel it my duty to present for your consideration some of the views I entertain, which result from my observation of the operations of the act of 19th August, 1861, and to suggest certain amendments which I think should be adopted in the constructions of any statute that Congress may enact on this subject.
It is not intended to dictate to you what you should recommend Congress to do in the premises, but merely to lay my suggestions before you, so that, if you perceive any merit in them, you may adopt such as are approved, and present them at the proper time for the consideration and action of Congress.
The returns, so far as received from four States, exhibit an inequality in the valuation of certain species of property, which is unjust in its effects upon a large portion of tax-payers, and which, in any future legislation, I think, should not exist. For instance, in the