New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1853-10-12
HOW TO DFpLETE THE TREASURY.


For the second time in history there has arisen
the question-IIow shall the treasury be depleted
Seventeen years since the revenue much in ex-
cess that the treasury held less than thirty millions
and then as now il supposed that great prosperity
would result from its depletion 1t was depleted but
the act of distribution followed BY adversely so
great that it Frustrated first the banks next the pe0
PIE and finally the Government which, after having
paid of all its debt and distributed large surplus rev
enue found itself compelled to beg abroad for loans
and to submit to the degradation of seeing its agent
driven from the doors Of every banking house in En-
gland France and Holland.
We have now repetition Ofthe state Ofthings that eX-
isted in 1896. The treasury is full and money is
and high and spectators Of all kinds are anxious that
the overweight millions now in the various subrea-
sures should be paid out to make money plenty
and sustain the price of fancy stocks The mind of the
Secretary is also exercised nregard to the vastsmOunt
of treasure under his control and he is anxious that the
process of depletion shall be commenced All agreed
that the wolk must be done but the question not yet
settled to how it may safely be DONE and with he de-
cison Oftbat question the future reputation Ofthe secre
tary largely connected. If he make bundsrnow his
administration may be characterized by occurrences sim
liar to those which unhappily distinguished the ad
ADMINISTRATION of Mr. Van Buren, and he himsefmay be set
down a. a failure whereas, if be now act judicously
and with single eye to the prosperity of his country
he may and probably will, earn the reputation Of
statesman He has therefore deep interest in en-
deayoring TO arrive at right decision We are, how
ever disposed TO believe have already said, that
apart from all selfish feelings he is DESTROYS TO do what
he thinks to be rghtto act the part Of the statesman
and not that of the mere partisan He is yet
nitted to any policy and we canno, but hope that be-
fore determining upon the to be adopted
he will scruiinze carefully those of his predecessor
who found himself in a similar situation in lSJ6.
If we wish to understand the present, or to pre-
diet the future we must study the past If we wish
TO remedy al evil we must first understand It's
Two cases Of surplus revenue have occurred and
both occasions they have had their origin in similar
causes and if the present be not treated in
widely different from the former, il may lead similar
result, namely, the almost entire demolition OF the pub
lie and the nearly complete bankruptcy of the
treasury Whatwere the causes then and what are the
causes now, purpose to show, and thus contribute
aid toward the determination of the question as to
how the treasury may safely be depleted.
In the last three years that preceded the passage of
the protective tariff of l52S, the average customs
revenue was twenty-five millions, one-half of which
amount applied to the payment of principal and
interest of the public debt Under the highly protect
i've tariff Of 1928 that revenue rose to twentyiour,
twenty eight and finally, in 1928 to twenty nine mil
lions and the discharge Of the public debt proceeded
with such rapidty that at length nothing remained but
tie three per cent stock, which, readers will
reooect, was paid of at par, and the national debt
hen ceased to exist Much of it had been held in Eu
rope, aud as we were then not accustomed TO selling
ponds abroad, it followed that foreign debt had
yreay diminished while our independence of foreign
banks and bankers had greatly increased.
With the discharge of the debt il had become neces
AIRY to look at the tariff with view TO reduction OF
he revenue, and coffee tea railroad iron, silks, wines
md other articles, declared free, while the duties
IN cotton, wOOleDs iron, and other commodities were
placed in course of reduction to end in the adoption
IF strictly revenue tariff in 1872 the rate Of duty be-
ng fixed at 20 per cent. Up to that time, there had
,een a steady tendency to the increase OF msnuiac-
ures and it continued for short period thereafter
u thencelorward they ceased to keep pace with the
demands of our growing population and the reason for
his was that Congress had decided against any further
continuation of the policy which looked bringing the
com and the anvil into the neighbOrhOod Of the plow.
,sptal being thus shut cut from manufactures, the
ountry was more and more thrown upon foreign pro-
ucers for its supplies and with every increase of
ur demands upon them there was a rise of prices and
bus the effect of the compromise tariff was 10 cause
TO pay far more for goods under reduced tariff than
We had paid under high one and the more the duty
ell the higher rose the foreign price-thus proving
hat it was the foreigner who had paid the duty.
Shut from manufactures capital now sought road
baking and next the issue Of bonds the eontrae-
ion of large foreign debt and the increased Deepen
ence of the people and the treasury upon the vara
ions of foreign markets. Bonds could readily be sold
ecause the policy of the country was enriehng the
'reisn manufacturer, while diminishing the customs
evenue In 1881 bar iron could be bought for IS 1919
ut in 1876 il sold for $40 IL g. and thus the only ef
ct of freeing railroad bars had been that Of enabling
be British iron maker TO pocket the duty that had been
Lead copper, cotton and wooden goods
ks and all other Manufactured commodities partic
ated in the rise and prices were considerably higher
ian they had been under the protective tariff Of ls2s
ID thus was that the foreigner was enabled to take
} large quantity Of bonds The compromise tariff
Id gwen him the power Of taxing our consumers and
2 took bonds for part Ofhis taxes.
The rise of prices abroad tended of course 70 raise
ices at home. Furnaces and rolling mills had almost
ased to be built and domestic competition ceased TO
ow, and thus II was that monopoly OF The market
as established in favor OF the foreigner and of few
mestic producers, who accomplished large fortunes
the cost Of the consumers. The higher the prices
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