The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1859-09-17
The Finances or the Government and tho
Country.

The Finances or the Government and the
Country.
Notwithstanding the efforts which are being
constantly made to diffuse correct views on
financial questions throughout the community,
there yet remain quite number of newspapers
and public speakers who impute it to Mr.
Buchanan as fault, that though he took Office
with surplus in the Treasury he has been
compelled to borrow money over and above
the ordinary revenues of the government to
carry on the public service. In some localities
the alleged "extravagance" of the administra-
ton is the staple cry of the opposition leaders;
not week passes but some journal winds up
political TRADE against the President with the
tremendous peroration that he entered tho
White House with magnificent surplus in the
Treasury, and that when he leaves it the coun-
try will be deeply in debt.
If there be any respectable men, not politi-
clans, who have been deluded by these state
ments, they should lose no time in making
themselves acquainted with the statistical and
financial history of the government; from
careful study Of which they will speedily dis
cover that the deficiency of revenue which
compelled the government to borrow money
under the present administration arose from
causes with which Mr.. Buchanan has had no
more to do than the Pope, and that instead Of
leaving the White House with floating debt
running against the government, there is a
prospect that Mr.. Buchanan, like Mr.. Pierce
will go out leaving large surplus behind him.
The revenue of the United States government
depends on causes far beyond the control of
statesmen or politicians. About nine-tenths of
the ordinary revenues of the government are
derived from customs duties, which of course
are proportional to the amount of importa-
tons, which in their turn fuctuate according
to the general prosperity of the country and
the amount of bank and general credit expan-
son When the country is prosperous, credit
general, and the banks widely expanded, the
receipts from duties are large, and the pub
lie revenue increases till it exceeds
the expenditure and leaves surplus;
when, on the contrary, the country
is poor. trade depressed, and the banks con-
tracted, the customs receipts fall off and the
public revenue falls below the expenditure
leaving deficit, and compelling the govern
ment to borrow Over these movements ad-
ministrations have no control whatever. 1t
was the fortune of Mr. Pierce to be President
when the country enjoyed unexampled pros
perity. and the customs revenue left surplus
each year 1t has been thus far the lot of Mr..
Buchanan to be President during period of
general distress and depression, and hence the
customs revenue has fallen largely short of the
public expenditure. All that governments can
do is to check extravagant expenditure in flush
times, and to enforce rigid economy when
times are hard. That Mr.. Pierce neglected,
while Mr.. Buchanan has faithfully performed
this duty, glance at the figures will show.
During the fiscal year 1928, during which
Mr.. Pierce was inaugurated, the total revenue
was SCI 500 900, of which s5s,93l 1865 were de-
rived from customs-both unexampled amounts
at that time. That year the expenditure was
S54,577 ,OG1, and the Treasury showed asurplus
when it ended. That surplus, which the in
creasing prosperity Of the country continued
to swell year after year, led Mr.. Pierce's ad-
ministration into habits of unprecedented
wastefulness The following figures will show
how the public expenditure increased with the