The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1867-11-26

time, apparently, the aim is to obtain relief
by reduction instead of an inofease of taxa
tion. Not the tariff but the internal revenue
system is the object Of attention. the manu-
facturers wisely holding that the depression
and distress of which they complain proceed
more from the ruinous nature and amount of
taxes levied upon industry and enterprise
than from defects in the scale of customs
duties. Their general view therefore har-
monizes with the general interest; and though
we must recognize selfshness as the impelling
motive of the movement, at least we may avail
ourselves of it as a valuable auxiliary in the
work of fiscal reform, For the men embarked
in it speak from experience. Their state
ments as to the exhsustng effect of the bur
dens imposed are verified by the condition to
which nearly all forms of industry have been
brought. And the succor they pray for will
commend itself to the people by its immediate
bearing upon their pockets.
AS broad principle, perhaps it is not too
much to insist that in existing circumstances
the amount of taxes levied should be regulated
solely by the current wants of the Govern
ment, without reference to plans for the re-
duction of the national debt. The latter pur-
pose will be in order when the country shall
have recovered from the effects Of the war
| when production and commerce shall have
regained prosperity, and when the load conse-
| quent upon an inflated currency shall have
| been lifted off the shoulders of the people.
| Time and judcious statesmanship, and wise
| and universal economy, can alone restore the
strength and ease which should precede the
| application of measures for paying the princi-
| pal of the debt. Meanwhile these plans are
premature, and, being premature, are neither
/ wise nor expedient. The questions which
force themselves on every mans attention
| pertain to the actual, unavoidable necessities
| of the day-not to the discharge of liabilities
| which will not mature for years to come.
Positive wants require all our attention. The
| struggle to live is severe enough, without
| adding to it by assuming obligations gratui-
tously, for the qualification of some financial
theorist.
If this view is right, the proper measure of
| taxation is at present the current expenditure
| OF the Government plus the interest on the
| debt. All taxation imposed for purposes
| other than these, being unnecessary, should
| be abolished. And as it is estimated that
| the excess of revenue collected under exist
| ing laws, above the sum needed for these
| purposes, is not less than $3.50, 200, 900, it
follows that Congress, without inconvenience
| to the Government or damage to the public
credit, may reduce the annual aggregate of
| taxes to this enormous extent. A vigorous
| system of retrenchment would render a still
| larger reduction practicable, and such sys-
tenn Congress ought to enforce in every de-
| partment. Leaving possible savings out of
the account, however, there yet remains the
| fact that on the present basis of revenue and
| expenditure $3.50, 900, 900 are collected above
| the positive necessities of the country. To
| this amount, therefore, the taxpayers are en-
| titled to relief.
AS result of this large reduction, the Trea-
| sury policy will need essential modification.
With the relief to producers aud consumers
uyhi 80 inv Iua1 -, fIo
temporary stoppage of the debt-paying pro-
| cess. That must be deferred to a more conve-
nlent season, which, however, may be ex-
| pected long in advance of the period at which
the bulk of the debt will be due. In another
respect change is desirable Just now we
reduce one form of debt with one hand and
increase another form of debt with the other.
| ShOrt-time currency debt is all the time being
converted into longtime gold-bearing debt
| Notwithstanding, then, the continued system
of reducing Indebtedness, the interest payable
| in gold is as constantly increased. There
would be no harm in the substitution if green
backs and gold were on level. But with gold
at forty per cent. premium, and with all the
chances OF speculation open, the process GER
tainly cannot be commended as economical,
To convert obligations payable in paper money
into obligations payable in gold, may pass
under the term of funding, but its profitable
ness is past finding out. Its effect is to in
crease the debt.
Instead of allo wing the holders of the cur
rency debt to convert it into gold bonds at
pleasure, to the manifest injury of the tax
payers, sound policy would seem to require
its redemption with gTeenbacks when possible,
or its renewal with other short currency obli-
cations when necessary. The proper use of
so much OF legal-tender currency as the Trea-
sury may from time to time command is the
redemption of currency debt; SO obviating
the embarrassment incident to contraction
while reducing the debt The natural order
OF finance is just now reversed. We contract
the non-interest bearing debt, while we enlarge
the gold-inteTest bearing debt; which is at
once unjust and eXtravagant. BY following
the more reasonable course and paying
the currency debt as fast as we can with
greenbaoks, we should steadily improve the
interest account, and at the same time obviate
the contraction which, as now conducted ope-
rates detrimentally by keeping business inte-
rests in state OF constant uncertainty. Under
the most careful management the transition
from an inflated currency to specie payments
will be attended with anxiety and disaster.
But these may be lessened by deferring con-
traction until the legal-tendsr currency shall
have fulfilled its purpose, which is the re-
demptiOn of the currency obligations of the
Government. This accomplished, cautious
contraction may be renewed with a safety that
will be increased with the natural growth of
the country in the intervening period.
Whatever policy Congress may ultimately
adopt, let us hope that its action will be pre-
dicated upon a thorough and intelligent ex-
animation of the kindred subjects of debt
taxation, and currency by the financial com
mittees OF both Houses. Doubtless a great
effort will be made TO repress individual