e imposed on
distilled spirits, on the retailing of spirits, on salt, sugar,
carriages, sales at auction, a stamp duty of one per cent. on bank
notes, on all notes discounted by a bank, and on inland bills of
exchange.

It is clearly shown by the papers on file in the treasury department
that Mr. Sherman exercised the utmost care in the collection of
these taxes through his deputies. No difficulty seems to have
occurred until July, 1817, when the government, without previous
notice, refused to take the paper then in circulation in Ohio, but
demanded notes of the Bank of the United States, or its branches,
one of which was located at Chillicothe. This left upon the hands
of his deputies a large amount of money that soon became utterly
worthless. The system of local banking failed and the loss fell
upon the holders of notes, and, largely, upon the collectors of
internal revenue and their deputies. Among my father's deputies
the principal one seems to have been Peter Apple, of Pickaway
county, who at the time of his appointment held a county office,
was postmaster, and a justice of the peace. He was a leading man,
of high character and standing, and supposed to be of considerable
wealth. In 1817 he became embarrassed and insolvent, and was
removed from his position as deputy. His bonds proved worthless,
and the whole loss and liability fell upon my father. This, with
other losses occurring through the failure of other deputies, was
the most unfortunate event of his life. His correspondence with
the Internal Revenue Bureau shows that he exercised the utmost care
in keeping and reporting his accounts, and the difficulties and
losses he sustained in converting local bills into such notes as
the government would receive in payment of taxes. It is clearly
shown that the loss was not caused by any failure or neglect on
his part. In like circumstances, under the existing law, Congress
has, in all cases where due diligence on the part of the collector
has been proven, relieved the collector. My father declined to
make any appeal for such relief, but applied the proceeds of all
his property, and a large part of his earnings, to make good, as
far as he could, the defalcations of his deputies. This loss was
a great embarrassment for him and his family during his life. It
did not affect his standing, either at home or with the government,
but it deprived him of many comforts, and his family of advantages
and opportuni