The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1864-08-01
FINANCIAL AND COMMERCIAL.

SUNDAY, July 81, 1854.
amusing 70 hear some persons speak OF contrac.
too Of the currency being present time mprac
tcaee, and that the Treasury has other 20
pursue than OF continued imitation, when 10 10 per
fscty obvious that single act of Congress- might be
passed which would result IN the Withdrawal OF the en-
tire currency issues Of the government or any part OF
the same from circulation ana The substitution therefor
Of funded deol That the power OF the gov
Is essy show by supposng that Congress
authorized funding Of the currency debt into coupon
bonds bearing say Eve per interest In gold the
funding take place within q stated time, after
which the currency issues would be no longer con-
sidered q legal tender. The interest on this debt
could be raised BY special taxation payable
spece by property Of three four per cent
which, estimating tue currency ~ six hundred aud
fwsny millions and the property OF the Sttes outside OF
the rebeous districts at fourteen hundred thousand
millions, would be ample for the purpose, allowing
for contingencies and evasions OF the In payment
OF this coupons the bonds would have
TO be made receivable the equivalent of gold. This
would stimulate the demand for aud sustain the price OF
che bonds for property holder liable TO the specie
tax would eDdeawor protect himself by securing suf-
hcisnt amount Of their interest equal TO
she tax.
Such . this would probably meet with
strong opposition among the majority OF property hold
The former would in 1t ultimate advantage by the
check depreciation Of values IT would afford. Although
their expenditure would be directly TO the
lent Of the taxation they would gain than
Equivalent in the improved value OF their accumulated
property and by the decline or prices for produce and
general merchandise which would result from retiring
currency The value real would be especially
Improved ror calculating by the specie Standard has
suffered great depreciation since the suspension and
property worth million In gold then is in reality, not
worth moro than hall much now, other conditions
being equal although It's value in currency dollars may
be considerably In excess Of It's former specie valua
Zion.
Our resources such that better capable Of
enduring heavy taxation than any other nation in the
world Great Britain last year under reduced tariff
and tax bill, ased, we have before had occasion
20 quote, seventy millions OF pounds sterlng and II
necessary double the amount could be raised, SO
that the country would be enabled to carry
q foreign without having 10 either
loans currency; and yet the population is only
twenty nine millions three millions OF which consist or
persons who unable contribute in any degree to
the revenue, being recipients Of indoor outdoor parish
relief Mr.. Pashey 10 his work on s'Pauperism," has
called them ian ignorant, degraded and pauper Glass;
and TO these may be added another three millions
who almost equally STEPPED in poverty, and yield
little by taxation. After deducting this large number
taxable population the free States is not very far short
OF that Of Great Britain and is the working OF
the people, and not the rich q any country who pay the
taxes.
Taxation, art has only Of late years made much
progress towards perfection, by which mean the
raising Of the largest with the least cost and ncon
veneDce to both the government and the people, Taxa
tion q the present dsy, in nearly every European
country both less costly and oppressive and
duotve than It was quarter OF century, o. We may
say ten years, ago. Even Spain, for long period,
che moss backward and rstrogressivs Of prom
insnt Powers, has pronted BY the march Of
potco science and increased her from
sixty millions Of dollars per annum in 1851 70 hun
dred and tan millions Of dollars spsces during the asca
year just endsd.
Political economists have begun to appreciate more
chan ~ important feet that taxation touch
0qneol apasss. me time and genuine strength and
heu48 ASountry, and the moral and religious con.
ns& rsaseN happiness Of iw people, are materially
Uaesncd by 10 Ascal regulations II inordinats taxs
tsoa demand from ingenuity and industry larger sacr
nos than they are able or ought 70 make
o. exchange for the benefits Of government popular dis
satisfaction and political discrd Inevitably arse and
10 therefore OF consequence that
sap should direct ts efforts 70 the perfection 0 aschsms
Of taxation which should bear upon all with much
equality and lightly possible, the scala being pro-
psrtioned 70 the wealth q indiviauals
The vast expenditures Of the present war; which are
% rapidly adding 70 orr already large national
dsbt, conducted with . certain reckleesnsss
a cost which would seem to threaten she
psrpetuation Of . system Of extravagsncs which
after return 70 peace could not be consinued i'm
ponity. Popular d,sconteat would msoess ITSELF and
the administrative would BE- eneebled by party contests
The history OF former and the experience Of modern
times alike confirm this. the fiscal DEGREES Of the |
Court Of France had not been carried
tavagnce too great 70 be sanctioned the obse
9uious Parliament Of Paris the PROVINCES might |
not have been encouraged to become refractory,
and the nrst OF the series Of modern French |
revolutions might have been sverted. That |
Political revolutions have their origin In oppressive
unequal taxation is maxim which the historic records
OF nations tend abundantIy to show.
While. therefore, heavy taxation Ii indispensable to
eeoe the sovency Of this country Legislators must
be careful how they tax It rs admitted axiom
financial science that taxation dimnishes consumption
and 10 proportion 70 the amount levied
The OF revenue, well 10 our expenditure,
should undergo the strctest Investigation and matures
consideration only by the Secretary OF the Treasury,
but members both houses Of Congress who have
the industry, the knowledge and the moral courage 70
perform the hercuean labor.
Let us NOT forget, amid the excitement Of war, the
enormous excess OF public expenditure over the In
come that the testimony Of al history establishes
che fact that heavy national debt great future in
cumbrance, and that the We exceed our national
strength beyond certain limit now the greater viii be
ahs prostraton hereafter Judcous taxation while the
var lasts win do much 10 diminish the increase OF our
Indebtedness lesson the burdens which we shall
saddle upon posterty. But the Tax bill and tariff
ai present n force very defective, and in some re
spec calculated impair instead OF develop the fiscal
resources the government particularly as regards i'm
more or LEES prohibitory.
Tho immense recuperative power Of this country will
undoubtedly enable work OF large national debt in
much shorter time than any other in this world, and
thh makes our ultimate financial future problem less