Sometimes it is said, that, if cotton is not taxed, the Cotton States will escape taxation, which would be a practical injustice to other parts of the country. But I am not satisfied that we cannot tax their slaves. Besides, the $200,000,000 of cotton exported assures the importation of $200,000,000 of foreign products, which, with twenty-five per cent duty, gives a revenue of $50,000,000 annually. But if cotton must be taxed, it should not be by a specific tax, but by a tax _ad valorem_, and for obvious reason. Cotton is sold in the market under seven different grades, varying materially in value. These grades are classified as follows, beginning with the lowest or least valuable, and ending with the highest or most valuable: (1.) ordinary, (2.) good ordinary, (3.) low middling, (4.) middling, (5.) good middling, (6.) middling fair, (7.) Sea Island. For ten years, from 1850 to 1860, the average price of ordinary cotton was six and five eighths cents a pound, while middling fair, the highest grade except Sea Island, averaged twelve cents a pound. A tax of one cent a pound on ordinary cotton would be over fifteen per cent on its value, while one cent a pound on middling fair cotton would be eight and one third per cent, and the same tax on Sea Island cotton, commanding the highest price of all, would be less than five per cent. The tax on cotton, if any is imposed, ought not to exceed five per cent _ad valorem_. In the natural course of events, without interruption of war, the cotton exported would have amounted in value for a year to $200,000,000. If to this we add the value of cotton used in the United States, $35,000,000, we shall have the sum-total of $235,000,000. A tax of five per cent _ad valorem_ on this would be $11,750,000. The proposed tax of one cent a pound is much larger. During the year ending the 30th of June, 1860, the value of the cotton exported was $191,806,555, and the number of pounds exported was 1,767,686,338. A tax of one cent a pound would be $17,676,863,--a very large sum, which I should be glad to pour into our Treasury. But, assuming the value of this cotton at ten and eight tenths cents a pound, the tax of one cent a pound will be above nine and one fourth per cent,--nearly double what the tax ought to be. Consider now, if you please, the effect of this tax on cotton manufactures. It appears that we manufacture annually about seven hundred thousand bales of cotton, one half of which is of the three lower grades, and is worked into what is called by manufacturers coarse goods. Of these one pound of cotton will make about two and a half yards, worth twenty cents. Now a tax of three per cent on this cloth would be six mills. Add the tax of one cent a pound on cotton, and you have a total of sixteen mills, making a tax of eight per cent on the value of the cloth,--a higher tax than is imposed by the Tax Bill on anything except dogs, whiskey, and tobacco.