The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-07-13

Aoo kkOoo mlSmoubSCuOns VI o04 aSsVuoi
finances by Secretary MoCulloch has reached q
point that is really alarming. The frauds upon
the revenue amount to something Ike q
hundred millions Q year In two or three articles
only-namely, in whiskey, tobacco. and petro-
leum. In fact, the whiskey frauds alone swell
up to nearly that amount Astounding as this
statement is, 1t ID not exaggerated; it is well
known fact Looking at these discovered
enormous frauds In few articles, and at the
incapacig and neglect Of duty on the part Of
the Treasury Department In other respects az
WE'LL We should not overestimate, probably,
the entire Losses to the government at hundred
and my millions to two hundred millions .
year, through having such an incapable man
- 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 suoh Encouragement without
becoming bankrupt in year or two, and we
cannot, with all our wonderful resources, stand
1t long.
Let us state some Of the facts as far a. they
have been revealed. II is estimated that
ninety millions Of gallons of spirits year
were produced 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, tho revenue from this source at the
1nxvoct ookS IN - hn 6v>c orI
twenty millions. Last year the amount of
revenue received from whiskey 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
defrauded Of upwards of hundred millions
year from whiskey alone. What the loss is
from frauds in petroleum, tobacco, and other
articles, we cannot determine, having yet no
data to 60 upon. It is not less probably,
than fifty millions. Add to these sums the loss
to the Treasury of over twenty millions year
on the circulation given to the national banks,
the loss by keeping hundred and forty mil
lions of unproductive capital or money shut
up in its vaults the numerous leakages from
defaulting agents, and the vast unnecessary
expenditures in the management of the Depart
ment, and we shall haye = total loss of about
two hundred millions year. An able Secre-
tary of the Treasury could save this enormous
amount Mr.. McCulloch loses it. Is not this
paying dear for very poor whistle!
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-
stole. 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 why
should 1t not be collected herei II is
collected with little loss, too, under q much
less expensive system. With the costly ma
chinery he has for collection the British or
French government would scarcely lose
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 appoint
ing proper agents, in the want Of vigilance, 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 Treasury! That is his
dury he is placed where he is for that pur-
pose. AS regards his subordinates or agents,
every business man-every one with common
sense-knows that the head of an establish
ment is responsible for them, because he selects
and controls them. Any man in the ordinary
business Of life, at the head OF bank, CONNER
cial firm or company Of any kind, who allows
frauds to be committed or who is incapable Of
preventing them, Is removed at once. Why
should not the business Of the Treasury be
conducted on the same principle? Why
should O man so utterly incapable be per-
mitsed to hold ofi,ei
With regard to the fraud upon the people by
giving the national banks the profits Of q ma
tional circulation, and In perpetuating q
moneyed oligarchy that eats up the profits Of
a nations industry, Mr.. McCulloch Is indi.
rsctly, II not directly, responsible. He was
one Of the original promoters Of this Infamous
system, and has earnestly sustained IL ever
since he has been in power. If he had an ides
above that Of little country banker 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 statesman; he Is mere
village banker Congress naturally looks to
him for Information on ell 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