Spirit of Jefferson. [volume] (Charles Town, Va. [W. Va.]) 1844-1948, 1867-12-10

that people viii be more honest than the
government under which they live; and while
the government of the United States refuses
to pay its notes according to their tenor, or
at least as long as it fails to make proper
effort to do so, it practically teaches to the
people the doctrine of Reputation"
He insists strenuOisly upon the mainte-
nance of the public faith, and declares that
nothing but absolute insolvency will save
from the infaDy of reputation nation that
does not pay its debts according to the I'M
derstanding at the time they were contracted;
and when nation voluntarily violates this
understanding, it viii soon be unable, from
the very effect of It's own example, to enforce
its revenue laws, md its expenditures will
only be checked by its inability to collect"
de refers briefly to the present tariff and
shows the superiority of specific duties over
the adj V0Iorem system because they afford
less opportunity for fraud.
He admits that the duty on distilled LIQUORS
is so high, and the temptation to avoid paw
ment SO great, that both the manufacturers
and the officers of revenue have become great
ly demoralized. Although the meter adopt
ed by the government may diminish fraud,
yet the collection of SO heavy tax as that
imposed will be impossible, unless higher
standard of qualification for revenue officers
than now exists shall be established"
The Secretary urges great economy in the
use of the magnificent resources of the gov
ernment, and expresses the opinion that with
proper prudence in this regard the whole ma
tional debt might be extinguished within the
century. He suggests in the way of curtail-
ment OF expenses that the army should be
reduced to the minimum required to garrison
forts, and preserve the peace on the frontiers
and along the lines of the Pacific roads; that
the navy also be reduced to the smallest force
required to protect our commerce, and main
tain our reputation as a maritime power; that
retrenchment be introduced into all DEPART
ments of the civil service; that there be no
payments Of damages which were the una
voidable incidents of war, and that there be
no additional grants to railroads, unless at the
time they are made special tax be imposed
to reimburse the government.
The proposition to pay off the national debt
in tho currency of the country, whatever it
may be, when the debt natures. meets with
no favor from the Secretary. The loans re-
quired by the government 1T the times of its
greatest need could never have been obtained
on any other terms than their re payment in
coin. In this connection he asks 8: how we
would stand before the world if the govern.
ment should decline to pay according to agree.
ment the money it borrowed when its exist
ence was in peril, on the ground that lenders
tooS advantage of its necessities ~
The important subject of the taxation of
the government bonds is a subject upon which
the following striking recommendation is
made. Instead of permitting the States or
the local authorities Of the States to tax these
bonds as other property, and in that mode
make them a source of revenue, he proposes
that the debt of the United States shall be
funded in bonds to be known as the CONSOLE
dated debt Of tho United States and bearing
six per cent interest. One>sixth of the in
terest or ono per cent. shall be reserved by
the government for the benefit of the States;
and the distribution to be made according to
population. Assuming that the debt thus
funded would be two thousand millions the
interest coming TO each State per annum would
be as follows:
Maine, $685., 500 IS; Massachusetts. s748.
31S 43 ) New Hampshire, S194,41I II; Yer
mont, SlS6,O26 90; Connecticut, s2S2,4IS-
OF; Rhode Island, Sl07, IVA I6; New York,
S2,3Sl, 1875 SO; New jersey, S4l2 .466 %:
Pennsylvania, 81, 783, CAT II Ohio, 81 49,
$50 50; Indiana, 1886, ri 81; MICHIGAN.
$4,000 50; Illinois, 81 300, S92 Sc; Wis
cOnsin, 1921 ,554 40; Iowa, S493 ,I59 10;
Minnesota, sl77, $40 81; Missouri, s773,,
83l 10; Kentucky, s709,3OS 45; Tenues-
see, s681, l47 So; Arkansas, 1857 ,259 %;
Louisiana, S434 $40 II; Texas, s529, 772 40;
Alabama, $3.50 ,5l2 %; Mississippi, s471,-
1872 %; Georgia, S645 ,9I5 %; Florida, 800
200 60 South Carolina, s43I sos l3 North
Carolina, 1926, 634 %; Virginia. S738 GEO
so; West Virginia, S2i9,OSS IL; MARYLAND.
1921 $50 SO; Delaware, sos, 1913 AZ; Kan
sas, S156,662 80; Nebraska, s33. ZIG Sc;
California, S2SS, 758 II Nevada, "a, O4S "a;
Oregon 10000 rs.
The Secretary closes his report with esti-
mates of the receipts and expenditures, of
which be suppOses there will be of the for.
mer 81 millions, and of the latter 372 mil
lions
The document breathes throughout an
earnest incubation of the theory that many,
if not most of, the monetary troubles of the
country are attributable to the non-restoration
of the Southern States to their proper posi-
ton in the Union, and to the paralysis pro-
duced by the extreme and unjust measures Of
Congress in the commerce, trade, and indus
trial pursuits generally, of that section of the