The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1867-05-31
The Pnblic Finnnces.

"NbOAA'A"AN
important subject. 1t is one upon which there
is a great lack of information among all classes,
and a wide diversity of opinion even among
the most intelligent. Men who have made it
a specially are often Numerically opposed in
their views. Hence we find the greatest variety
of opinions prevailing as to the proper mea-
sures to be pursued in conducting the finances
of the nation. Some would have the currency
contracted believing that it is redundant, and
that its redundancy enhances prices and re-
presses production. There are others who be-
lieve, on the contrary, that there is no re-
dundanoy of the currency, that the amount is
no greater than the wants of the people de-
mand, and that its contraction would be fol-
lowed by commercial distress and disaster.
What constitutes the true volume of the cur
rency is itself question Of dispute among
financial authorities. A recent able writer
brings forward some strong arguments, ac-
companied by statistics, to show that the
amount of circulation in 1866 was actually
less than it was in 1861, while Secretary Nc
CulIOch makes the amount to have been vastly
in excess. He charges the Secretary with ga
grave and extraordinary blunder," in declaring
officially to the world ''that our bank loans
and paper currency are five hundred millions
greater than they really are"
Some regard the resumption of specie pay
ments as both practicable and desirable, while
others think it neither; and writer in the
New York Herald of yesterday devotes two
columns and half to an elaborate essay de-
signed to prove "the evils of a metallic cur
rency as shown in the past history of the
United States, and the advantages of paper
money"
In regard to the liquidation of the national
debt, similar diversity of opinions exists.
Secretary McCulloch thinks it might and
ought to be paid by the generation which con-
tracted it. Others would pay it off by small
instalments extending over period of one
hundred years or more. Those who would
pay the debt off rapidly are necessary advo-
Gates of high rate of taxation sufficient to
defray all the current expenses of the Govern
ment, and to leave large surplus towards the
extinguishment of the debt. Those on the
other hand, who would defer the full liquida-
tion of the debt to late period, are in favor of
sistent with paying the annual expenses of
the Government, aud devoting small and
definite sum to the extinguishment of the
debt.
In many quarters there is strong feeling
of opposition to the whole system of National
Banks, and desire to see them abolished;
while on the part of perhaps a majority of the
Sc 41,o
banking system is the soundest and safest
banking system ever known in our country,
and productive of vast and varied good.
These diverse and opposing opinioA al
serve to show that upon financial toys the
public mind is all at sea. Nothing is definite
and settled. There seems to be no common
ground to start from in constructing financial
theories. There are no financial axioms that
command universal assent, or, if there are,
their relation to ultimate conclusions is so in
distinct as to fail to force conviction upon the
public mind. AS might be expected, we have
no settled financial system in the Government
The public debt is organized upon no consis-
tent theory-indeed, it is not organized" at
all. We have no fewer than twelve different
cent. interest, and issued under twelve diff
ferent acts of Congress. OF the five per cent
loans there are five different issues, each with
its peculiar contingencies of conversion, re-
newal, redemption, etc. There are nine con-
tingencies appended to one issue of the seven
thirtes. Our public debt has nineteen diff
ferent periods of maturity, and six different
rates of interest.
Our method of taxation is equally anoma-
lous. There is no system about it. 1t is
governed by no principle. 1t bears no intel
ligible relation to the wants of the Government
or to the necessities of the people. 1t sets at
defiance all the laws of productive industry.
In short, it is huge, ungainly, haphazard
mass of legislation, the fruit of caprice and
ignorance.
From all this we argue that the financial
question, in all its aspects of currency, tariff,
internal revenue, public debt, etc., is to be
the great question of the political future. And
the public men who would be capable OF
leadership in that future must devote more
attention to the study of this great question.
yney must become adopts in the science OF
political economy. It is now more than
twenty years since these great topics ceased TO
enter actively into our politics. The tariff
question has not been political issue since
1914. Meanwhile, by the growth of hecountrv
and particularly by the results of the war
financial questions have assumed an import