New Orleans daily crescent. [volume] ([New Orleans, La.]) 1851-1866, 1866-01-11
rrNAncIAL POLICY OF THE GOVERNMENT,

ssss5 ------
In some remarks on Secretary Mccullough re-
port, not long ago, we suggested that perhaps it
might not be the very best policy 10 pay off the i'm
meHse public debt of the country within the very
short time indicated by the Secretary. 10 be
sure there would be d sort of extraordinary and
almost superhuman celebrity in liquidating debt
Of three thousand million dollars in the course OF
thirty wears, which would be extremely fiattering
I to American vanity and highly illustrative of
American energy and resources But after all the
process might cost q good deal more than it would
come ID. The result would be immense; but the
effort to accomplish the result would be immense
likewise. The debt might be got rid Of in thirty
years, or in twenty years, or in ten years, by
simply duplicating or duplicating Secretary Nc
Cullough's process; but the prosperity of the
country would certainly be got rid of at the same
time. In other words the burthens which industry
aud commerce and labor would have to bear
would be entirely beyond their ability to sustain.
Some people seem to imagine that because we
can pay a debt Of d given amount, in certain
number of years that, therefore, by merely in
creasing our annual payments we can Just as
easily pay the same amount in q proportionately
less number OF years. No fallacy can be greater
than this. We can pay the debt only with
The proceeds of our industry, and the surplus pro-
ceeds at that Of course we cannot pay the
amount before we make it; and that may take us
thirty, forty, or a hundred years.
When we suggested these ideas we had little
hope that they would meet with a response-at
least until experience should demonstrate the
inutlty of attempting to achieve results entirely
beyond our strength. We are glad to find, how
ever, that the New Fork World takes very much
the same view. That paper very wisely declares
itself opposed to any attempt, at this time, to Gre
ate sinking fund.- or to adopt any other measure
looking to the immediate reduction of the public
debt The fact is that the sinking fund system is
mere delusion as long as government Is borrowing
money to meets its current obligations So far as
the Treasury Is concerned 1T is only putting into
one pocket what is taken ont Of the other; and,
SO far as the public are concerned it is only need
essly increasing the bnrthens and restrictions which
are already almost insupportable. sinking fund
or other measure for the immediate reduction of
the public debtwonld necessarily involve increased
taxation. But taxes are already enormous any
material increase would make them insupportable
Iii the present distracted and disorganized CON
ition Of the industry Of the country, it Is simply
absurd, not to say absolutely wicked 70 talk about
increasing the rate of taxation. Any such scheme
would result in certain ruin to the naseent pros
perity of the Southern States. In such condition
of affairs the aggravated pressure of unusual ia
alton might familiarize the public mind with that
ifaa of Reputation which at present has only
phantasn,al shape. The argument that the public
credit would be enhanced by these extraordinary
efforts is eminently uGsound 1t would soon be
made evident that the very effort to pay too quiol
" had seriously impaired the ability to pay at all.
The only real and solid foundation for the public
credit Is the capacity Of the country to pay; that
canacity il involved in the reorganization and re-
suscitation of its Industry contamination which
is altogether irnpracticable in face of grinding,
onerous and oppressive taxation.
Secretary Mccullough has asked for authority
to make considerable loans This is wise and
proper. Loans are necessary in order to effect the
s#ithdrawal Of the legal tender and to enable the
country to pass safely through the next two or
three years Of commercial and industrial recon
struction. Taxes should be diminished rather than
Increased, and they should be distributed on
juster an more equal system than the present
one. The lowest rate Of taxation adequate at this
time to meet current expenses and interest on the
public debt would, hereafter, produce surplus
constantly augmenting in proportion to the in,
crease Of the productive industry and the wealth
of the country. Such surplus could very pro-
perry be applied to reduction Of the debt ANY
other sort Of a surplus would be simply draft on
the vital energies Of the people.
The number Of United States paymasters robbed
all over the country is something amazing and
alarming Another has just lost $4,000 in Kan
sas City. Exchange. @ VI u
Our contemporary does not understand the
goak.n Most Of them are not robbed at all.
They put out q report that they are, bring a pri-
vate bill before Congress for relief, pay pernrer
. hundred dollars or 50 to prove the robbery, and
have q bill passed allowing them the amount said
to be stolen, when they come to settle their ac
counts. This il an old dodge with some govern
ment fduciaries, practiced before the war, but Of
course much more extensively practiced now.
Messrs Gardner Smith & Co. will sell this day,
at halfpast 10 o'clock, at their salesroom, No. 80
Campstreet, for account of whom it may concern,