A considerable revenue was already derived from customs imposed upon imported goods. In 1861, and again in 1863, tariffs were raised enormously, professedly to increase the revenue. These high rates in a measure defeated their own purpose, altogether stopping the importation of not a few articles. The war compelled the Government to resort to internal taxation--always unpopular and now unknown in the United States for nearly half a century. Taxes were laid upon almost everything--upon trades, incomes, legacies, manufactures. The words of Sydney Smith will apply to our internal taxes during the war: "Taxes on the ermine which decorates the judge, and the rope which hangs the criminal; on the poor man's salt and the rich man's spice; on the brass nails of the coffin and the ribands of the bride." The tax on many finished products ranged from eight to fifteen per cent.; on some it rose to twenty per cent. [Illustration: Two men looking out a window.] Maximilian Watching the Departure of the Last French Troops from the City of Mexico. But these taxes, severe as they were, could furnish only a small part of the necessary income. The Government must borrow. In the first year of the war the banks loaned the United States $150,000,000 at 7.3 per cent. interest. Many other loans were secured as the war went on--one for $500,000,000, another for $900,000,000. As security the Government issued bonds, bearing various rates of interest and payable after a certain number of years. Treasury notes were also issued and made legal tender for all debts public and private. As the Government paid its own debts with them, they were in the nature of a forced loan. Of those which bore no interest (commonly known as greenbacks) $433,000,000 were issued from first to last. Also, when property was seized for the use of the army, the owners were given certificates of indebtedness which entitled the holders to payment at the United States Treasury. The proportion of revenue derived from each of the above sources is illustrated by the report of the treasurer of the United States for the year ending July 1, 1865. Customs yielded $85,000,000, internal revenue $209,000,000, loans $1,470,000,000.