There was much more financial legislation in 1862; but Chase
continued to stand aside and allow Congress the lead in
establishing an excise law, an increase in the income tax, and a
higher tariff--the last of which was necessitated by the excise
law which has been described as a bill "that taxed everything."
To enable American manufacturers to bear the excise duties levied
upon their business, protection was evoked to secure them the
possession of their field by excluding foreign competition. All
these taxes, however, produced but a fraction of the Government's
revenue. Borrowing, the favorite method of the Secretary, was
accepted by Congress as the main resource. It is computed that
by means of taxation there was raised in the course of the war
$667,163,247.00, while during the same period the Government
borrowed $2,621,916,786.00.
Whatever else he may think of Chase, no one denies that in 1862
he had other interests besides finance. Lincoln's Cabinet in
those days was far from an harmonious body. All through its
history there was a Chase faction and a Seward faction. The
former had behind them the Radical Republicans, while the latter
relied upon the support of the moderates. This division in the
Republican party runs deep through the politics of the time.
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