Daily Ohio statesman. [volume] (Columbus, Ohio) 1855-1870, 1867-03-01
Taxatfon and Debf-Their -Indu.
= - ..l.reElce on sBusineael. q 81


q The high. tariff men and the currency in
Aationists rarely condescend to discuss the
causes, Of the depression that prevails in all
branches of business. They accept the fact,
and prescribe their favorite specifics as SOW
ereign remedies. s:Issue more legal-tender
paper,' say the currency doctors, fand
prosperity willrethrn ;''<fofgettiBg that the
amount in circulation vastly exceeds the
requirements of Legitimate trade, and ig-
noring the terrible collapse which expert
ence shows to be the end of protFacted in
c0nveftibility. ''Impose higher duties"
CRY. the prohibitlonists; rsshnt out foreign
trade and all will be well ?, as thoughIa
people impoverished by high prices and re-
strieted tereourseS coulda aong3be spretita-
BILE customers to the protected classes Not
inIinfIations not In prohibition. is the rem
edy to be found. Either would make mat
tets, worse rather than better. Applied
conjoint tly, as seems not impro obable con-
isidering the complexion Of Congress- only
.asspecials Providence could avert distress
and ruin. r. - 49, ,..,-s..rcyad
4 The anomalous condition of the Southern
States. has unquest tiOnably much to do with
the business depression. Impoverished
and disorganized, their industry paralyzed
and their trade nearly extinct, they con-
tribute little to the adjustment of our for
eign trade, and consume still less of the
goods we have to sell. ( The sources of our
richest products and the market for our
largest sales before the war;, they are now
unable to buy or sell, That this circum-
stance contributes to the difficulties of the
commercial situation, does not admit of
doubt Nor is there ght inthel Congress
sional policy of reconstruction that justifies
hopes of early Improvement. Until the
harmony ofsthe States shall have been in
some manner re-estab blished-u the new
labor system shall run smoothly, and re-
ne wed confidence shall invite capital-un-
til law and order shall prevail and the last
yestige of military dominion disappear-=it
with the South. And since reconstruction,
as now pursued, promises to be slow and in
its results uncertain, we must look else
where than to the South tor the means of
securing relief to business. - .s..Is
Ofthercauses ofdepression that are with
in our reach, none is more potent than tax
ation.s The speculation begotfen of an in
fiated currency has been a fruitful source
of evil, and it is one that only . firm policy
of contraction will cure. But though
Speculation Nnsettles and demofaliZes, it
does not crush after the manner of ca xation.
It drags down, trade to the level of gam
bling; taxation puts amend to many forms
of industry, and cripples all. Mr.. Wells
Iexposition'o of the destructive effects Of the
present system tallies with the knowledge
of every aobserXant man. Mr.. Hatch, in
his report, has illustrated the same fact by
a reference to the extinction OF the ship
building trade, and its transfer to the Brit
ish provinces under the pressure of our
taxes And with more or less force the
same argument applies to other branches
of industry. From no other single cause
does the country suffer so seriously as from
| its fiscal system; and no single measure
which it is in the power of Congress TO enact
would operate so benefciallV as a measure
largely reducing the annual aggregate OF
\ taxes.
| , Thescheme ofthe Ways and Means COM
mittee is good so far as it goes. Its lessen
| ing of the income tax will bring Joy to
multit6des, and its exemptions will aid in
1 dustry to an appreciable extent. But its
scope is not equal to the emergency. In
| stead OF fifty millions, the country should
1 be aided by reduction, of at least hum
dred or a hundred and fifty millions;
1 and this vastly greater reduction
might be effected if Congress would
be consistent enough to associate
the revision, of taxes with the dimin-
ution of Government expenditures
/ The proper mode OF procedure would be to
| apply the pruning knife unsparingly to
/ expenditure, with the view of rendering
the largest possible amount available for
the HghteniBg of taxation. The practice
of Congress is the very opposite. By some
unexplained process, it determines the
amount of taxation to be stricken of, and
1
/ that further taxation will be unavoidable
Upon this point the Financial Chronicle has
some sensible remarks: Il
with the exception of Hon. Justin S
1 Morrill, we: do onotremember any member
of either House to have enforced upon Con.
-gress the obvious necessity for liberal re
duetfon Of the expenditures of the Gov
ernment. The ease with which revenue Il
raised begets an indifference about expen'
ditures, and large sums are voted away ap
/ parently without any thought for the con
sequent drain upon the pockets of the peo
pie; instance, the Bounties bill, proposinS
an addition to the debt estimated at $75,
OO0,00O to 5000, 100000. 1t is true that i
punishment of some branches of interna
revenue is proposed; but it is sought to com
pensate for the consequent loss of Income
..-'i i-:It ..,s.-... 4-.i. NV