The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1867-07-15

they may get money, and get money that they
may retain power. Offices in their hands are
not administered for the public good, but for
their own profit.
MismanRgement OF the Treasury.
From he Herald.
The gross mismanagement of our national
finances by Secretary McCulloch has reached
point that is really alarming. The frauds
upon the revenue amount to something like
hundred millions year in two or three arti-
ces only-namely, in whisky, tobacco, and
petroleum. In fact, the whisky frauds alone
swell up to nearly that amount. Astounding
as this statement is, it is not exaggerated; it
is a well-known fact. Looking at these dis
covered enormous frauds in a few articles, and
at the incapacity and neglect of duty on the
part of the Treasury Department in other
respects as well, we should not overestimate
probably the entire losses to the Government
at hundred and fifty millions to two hundred
millions year, through having such an inca
pable man as Mr.. McCulloch at the head of the
Treasury Department. This is paying very
dear for poor whistle. What cost is this
Secretary to the country No other country
in the world could stand such mismanagement
without becoming bankrupt in year or two,
and we cannot with all our wonderful re-
sources, stand it long.
Let us state some of the facts as far as they
have been revealed. 1t is estimated that ninety
millions of gallons of spirits year were pro-
duced anterior to the war. There has been
little less if any, manufactured since; but
allowing the large margin of thirty-three per
cent. reduction.in consequence of the increased
tax, that would give sixty millions of gallons
year. The tax is two dollars gallon, and
therefore, the revenue from this source at the
lowest estimate ought to be hundred and
twenty millions. Last year the amount of
revenue received from whisky was only thirty
seven millions; this year, judging from the
present returns, it will not reach twenty mil
lions. Thus, we see, the Government is de-
frauded of upwards of hundred millions a
year from whisky alone. What the loss is
from frauds in petroleum, tobacco, and other
articles, we cannot determine, having yet no
data to go upon. 1t is not less, probably,
than fifty millions. Add to these sums the
loss to the Treasury of over twenty millions a
year on the circulation given to the National
banks, the loss by keeping hundred and
forty millions of unproductive capital or money
shut up in its vaults, the numerous leakages
from defaulting agents, and the vast unneces-
sary expenditures in the management of the
Department, and we shall have a total loss of
about two hundred millions year. An able
Secretary of the Treasury could save this
enormous amount. Mr.. McCulloch loses it. Is
not this paying dear for very poor whistle 7?
But the Secretary may say the fault is with
Congress. He may plead that in the matter of
collecting the revenue Congress has passed
laws that cannot be enforced; and as regards
the loss by the national banks, he has no con-
troll over that. Should he make such plea,
we maintain there is no foundation for it. For
the frauds on the revenue he is directly respon-
sible. The revenue is collected in other coun-
tries, where the taxes or duties are higher on
some articles than in this cOuntry-we may
mention England particularly-and why
should it not be collected here 1t is
collected with little loss, too, under much
less expensive system. With the costly ma
chinery he has for collection, the British or
French Government would scarcely lose a
dollar. Frauds, perjury, and the criminal con-
duct of Government agents are punishable
here as elsewhere. The laws, on the whole,
are good enough If executed. The fault is in
the administration of the Treasury in not
appointing proper agents, in the want of vigi-
lance, and in not bringing to punishment those
guilty of defrauding the Government. But
| suppose the laws need amendment; who
should know this, and who should point it
| out to Congress but the Secretary of the Trea-
suryl That is his duty; he is placed where
| he is for that purpose. AS regards his su bor-
| dinates or agents, every business man-every
one with common sense-knows that the head
of an establishment is responsible for them.
| Any man in the ordinary business of life, at
| the head of bank, commercial firm, or com
pany of any kind, who allows frauds to be
committed, or who is incapable of prevent
| ing them, is removed at once. Why should
not the business of the Treasury be conducted
on the same principle Why should man
so utterly incapable be permitted to hold
| Office
With regard to the fraud upou the people
| by giving the national banks the profits of
national circulation, and in perpetuating a
! moneyed oligarchy that eats up the profits of
a nations industry, Mr.. MeCulloch is indi-
rectly, if not directly, responsible. He was
one of the original promoters of this infamous
| system, and has earnestly sustained it ever
since he has been in power. II he had an idea
above that of little oountrylbanlzer he would
| see the monstrous evils of the national bank
| ing associations, both present and prospective;
but he is out Of his element he has not the
| least qualification of a statesman; he is a mere
| village banker. Congress naturally looks to
him for information on all questions Of national
finance and currency; yet he.has recommended
| nothing but measures ruinous TO the country.
| He has sustained the national banks has in
creased their profits and power, has largely
curtailed the proper national legal-tender cur
rency, has increased the debt bearing gold in
terest, thus causing a heavy drain OF the
precious metals from the country; and has
brought us to the verge of bankruptcy through
| deficiency in the revenue, when by proper