The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1867-09-21
Debt and TaxatIOn-Tho yruo Policy

Debt and TnxatIOn-The True Policy.
From the NJ y. Times.
The letter of Senator Morton contrasts most
favorably with recent outgivings, Republican
and Democratic, on the subject of finance.
Mr.. Pendleton and General Butler have
touched it only to disturb and alarm. Both
have suggested methods of dealing with the
national debt which directly affect the faith of
the Government towards the public creditor.
Mr.. Pendeton's proposition is to substitute
for debt as represented by bonds debt repre-
sented by currency; literally to flood the
country with greenbacks, and ruin all inte
rests by unlimited initiation. General Butler
does not go quite so far as that. Without
raising the question of currency, he insists
upon a rigid adherence to the letter of the
bond, which, with certain exceptions, he reads
as payable in legal-tender paper, not gold.
Radical and Democrat, Messrs. Butler and Pen
dleton are thus working in the direction of
practical repudiatiOn; and we already see the
mischievous result of their teaching in more
than one Western journal. That, separately
or together, they will produce any strong inn
preston, we do not believe. Wendell Phil
lips says truly that any party which shall
commit itself to reputation in any form will
be crushed out of existence by the American
people. But evil is nevertheless wrought by
the bias which the discussion of the debt,
apart from taxation, imparts to the popular
conception of fnance and especially by the
misappTehension to which these ideas give rise
in Europe.
1t is satisfactory, then, to turn from the en-
pirical plans of financial relief which Messrs.
Pendleton and Butler have respectively pro"
mulgated, TO the clear statement and whole
some reasoning of Senator Morton. The former
limit their nostrums to the debt, leaving un-
touched the matter of taxation, except as it is
-, 41,o, ,gs
Mr.. Morton, on the contrary, addresses HIM
self to the question of taxation as the question
of the day, placing that of debt in secondary
position. This is the proper relation OF the
two questions. The debt, large as it is, is not
in excess of our resources, and ere 1t reach
maturity will have dwindled almost into insig-
nihcance, compared with the rapid growth OF
the country in population, productive indus
try, and available wealth. But the present
taxation is oppressive, exhaustive, almost un-
endurable. 1t represses production, crlpPies
industry, embarrasses trade, and fosters dis'
content in degree which no statesman can
overlook.
The mere politician exhausts his financial
capacity when he invents plan for the re-
duction of the national debt. The debt is his
bugbear, and he is not scrupulous in the
choice of means for reducing its amount.
Mr.. Pendleton's mode is that of infinite dllu-
ton, after the manner of hom@opathy-th
bonded debt being lost sight of in an ocean
Of worthless paper. And there are others,
differing with Mr.. Pendleton in all things, who
would keep the taxation screw In constant
operation simply with a view to the paying oil
of the debt. One would beggar the patient by
filing his pockets with rags; the other would
tax the patient to death for the satisfaction o.
his creditors. Both methods belong to the
quackery of finance, Both anticipate danger
| where none exists, and overlook the danger
! that lies before us.