Pending the loan bill of June 22, 1862, before the House in Committee of the Whole, and the question being on the first section, authorizing a loan of $400,000,000, closing with this clause: And all bonds, Treasury notes, and other obligations of the United States shall be exempt from taxation by or under state or municipal authority. There was a sharp political controversy on this question, but the House finally agreed to it by 77 to 71. Party lines were not then distinctly drawn on financial issues. INTERNAL TAXES. The system of internal revenue taxes imposed during the war did not evenly divide parties until near its close, when Democrats were generally arrayed against these taxes. They cannot, from the record, be correctly classed as political issues, yet their adoption and the feelings since engendered by them, makes a brief summary of the record essential. First Session, Thirty-Seventh Congress. The bill to provide increased revenue from imports, &c., passed the House August 2, 1861—yeas 89, nays 39. Same day, it passed the Senate—yeas 34, nays 8, (Messrs. _Breckinridge_, _Bright_, _Johnson_, of Missouri, _Kennedy_, _Latham_, _Polk_, _Powell_, _Saulsbury_.)[24] Second Session, Thirty-Seventh Congress. _The Internal Revenue Act of 1862._ 1862, April 8—The House passed the bill to provide internal revenue, support the Government, and pay interest on the public debt—yeas 126, nays 15. The NAYS were: Messrs. _William Allen_, _George H. Browne_, Buffinton, _Cox_, _Kerrigan_, _Knapp_, _Law_, _Norton_, _Pendleton_, _Richardson_, _Shiel_, _Vallandigham_, _Voorhees_, _Chilton A. White_, _Wickliffe_—15. June 6—The bill passed in the Senate—yeas 37, nay 1, (Mr. _Powell_.) First Session Thirty-Eighth Congress. _Internal Revenue Act of 1864._ April 28—The House passed the act of 1864—yeas 110, nays 39. The NAYS were: Messrs. _James C. Allen_, _William J. Allen_, _Ancona_, _Brooks_, _Chanler_, _Cox_, _Dawson_, _Denison_, _Eden_, _Eldridge_, _Finck_, _Harrington_, _Benjamin G. Harris_, _Herrick_, _Philip Johnson_, _William Johnson_, _Knapp_, _Law_, _Le Blond_, _Long_, _Marcy_, _McDowell_, _McKinney_, _James R. Morris_, _Morrison_, _Noble_, _John O’Neil_, _Pendleton_, _Perry_, _Robinson_, _Ross_, _Stiles_, _Strouse_, _Stuart_, _Voorhees_, _Ward_, _Chilton A. White_, _Joseph W. White_, _Fernando Wood_—39. June 6—The Senate amended and passed the bill—yeas 22, nays 3, (Messrs. _Davis_, _Hendricks_, _Powell_.) The bill, as finally agreed upon by a Committee of Conference, passed without a division. Second Session, Thirty-Seventh Congress. _Tariff Act of 1862._ In House—1862, July 1—The House passed, without a division, a bill increasing temporarily the duties on imports, and for other purposes. July 8—The Senate passed it without a division.