The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-12-10

| on account OF their inQuisitoriai character. One
ars fnrcs oas annually are EXPENDED or sne
poyed In the execution OF laws both unneces
sarv ana unconstitutional one hundred and
pay the interest on the public debt; an army Of tax
gatherers imp0verishes the nation; and pubic
placed by CONGRESS beyond the control .,
large sums or money which they collect rem the
people In the name OF the government Judicious
legislation and prudent economy can alone remedy
defects and avert evils which, If suffered TO exist,
cannot fail TO diminish c0nG1 In the pubic coun-
Hs Ind WEAKEN tae ns nu Whot
proper care the small balance which IL Is esumaCeo
win remain In the Treasury at the close Of tne
fiscal year win not be realized, and additional mil
lions VIII be added to debt which is now emu
merated by billions.
OF the Secretary the Treasury that the receipts
the fiscal year ending June 80 1885, were $406 0S3,
and that the expenditures for the same period were
1877 $40 2Sf leaving In the Treasury surplus OF
sos 297 7ps. II is estimated that the receipts during
the present fiscal year ending June 80 1850, will be
sS4 $685. and the expenditures $685. 1872 47O show
ing small balance Of 1893 In favor OF the gov
| eminent. For the fiscal year ending June 80, 1870
il is estimated that the receipts wan amount t.
1927 900 000 and the expenditures to $685. 900 000
leaving an estimated surplus OF $4,000 900.
THE PUBLIC DEBT
II becomes proper, in this connection, to make a
brief reference to our public indebtedness which has
accumulated with such alarming rapidty and as
sumed such colossal proportions.
In 1889. when the government commenced opera
tons under the federal constitution it was burdened
with an Indebtedness OF $4,000 900, created during
the war of the Revolution. This amount had been
reduced to 001 when in 1872 was declared
against Great Britain. Tho three years. struggle
that followed largely increased che national obligs,
tons, aud ia 1915 they had attained the sum Of
$l27 100000 Wise and economical legislation,
however, enabled the government to pay the
entire mount within period OF twenty years, and
the extingushment OF the national debt flied the
land with rejoicing and was one Of the great events
OF President JacksOn's administration. After its re-
demptlon large fund remained in the Treasury,
which 1euOllted for safe kpaDinV with the
raj states, condition that it should be returned
when required by the public wants. In 1s49the year
after the termination OF an expensive war with
Mexco-we found ourselves involved in q debt or
$64, 900 900; ana this was the amount owed by the
government in 1860 just prior To the outbreak OF te
rebellion. In the spring or 1861 our civil war COM
menced Each year OF its continuance made an
enormous addition TO the debt; and when, in the
spring OF 1885, the nation successfully emerged from
the conflict the obligations OF the government had
reached the immense sum OF $2,S9S992, 700. The
Secretary OF the Treasury shows that the LIST day
OF November 1861 this amount had been reduced TO
s.49l, 504 450; but ut the same time his report
hbits an increase during the past year of 1885,
for the debt on the LIST day Of November last is stated
to have been So 527 652 IL is estimated by the
Secretary that the returns for the past month will
add to liabilities the further sum OF $1l, 000 600
making total increase during thirteen months Of
$45. 500, 000
In my message to Congress of December A. 1885,
1t was suggested that policy should be devised
which, without being oppressive to the people,
would ut once BEGIN to effect reduction OF the
debt and, If persisted In discharge IT. fully within
definite number OF years. The Secretary Of the
Treasury forcibly recommends legislation OF this
character and Justly urges that the longer It Is de-
plishment We should follow the wise precedents
established IN 1859 and 1915 and without further
tons at as early q period as may be practicable.
The fruits OF their abors should be enjoyed by our
raner than Gsea 70 Dua nP ana sustain n
foreign debt Is already computed by the Secretary OF
the Treasury at eight hundred and fifty millions;
citizens Of foreign countries receive interest upon
large portion OF securities, and American tax
payers are made to contribute large sums for their
support. The idea that such debt is to become
volving taxation too heavy to be borne, and payment
once In every sixteen years. at the present rate Of
This vast debt, II permitted TO become permanent
and increasing must eventually be gathered into the
GUS and controlling power in the affairs OF the gov
eminent. The borrowers would become servants to
the the lenders-th me lenders the masters Of
having gwen freedom to four millions of the
colored race; 1t will then be our shame that
usurpaton and pronigacy, have suffered themselves
to become enslaved, and merely exchanged slave.
owners for new taskmasters In the shape Of bond
holders and taxgatherers Besides, permanent debts
pertain TO m0narchcal governments and, tending
10 monopolies. perpetuites and class legislation are
totally irreconciabe with free institutions. Intro
duced into our republican system, they would gra-
dualy but surely sap ITS foundations, eventually
subyert our fabric ana erect upon It's
TO transmit unimpaired TO our p0sterty the bless
ings of liberty which were bequeathed to us by the
those who are to follow US carefully to avoid the
dangers which threaten free and independent
people,
Various plans have been proposed for the payment
OF the public debt However they may have varied
as 10 the time and mode In which 1t should be re-
deemed, there seems to be general concurrence as
TO the proprety and business or q reduction in the
present rate of interest The Secretary Of the Trea
sury IN his report recommends five per cent; Con-
gress in a bill passed prior TO Adjournment on the
2ith of July last agreed upon four and four and a
half per cent, while by many three per cent has
been held 10 be an an amply sufficient return for the
Investment The general impression as TO the ex-
orbtancy OF the existing rate OF interest has
led TO an inquiry In the public mind respect
ment has actually received for its bonds and
the conclusion is becoming prevalent that the amount
which 10 obtained was In real money 500 or 400 per
less than the obligations which 1t issned In re-
turn. II cannot be denied that paying an ex-
travagant percentage tor the OF the money Dor.
rowed, which was paper currency, greatly depre.
ciated below the value OF coin. This fact In made
apparent when we consider that bondhoders
celve from the Treasury upon each dollar they own
in government securities six per cent In gold, which
IL nearly quite equal To nine per cent in currency;
thai the bonds then converted into capital for the
national banks. upon which those institutions
issue their circulation bearing six per cent
interest; and that they are exempt from
and thereby enhanced two per cent in
the hands of the holders. we thus have aggre-
gate of seventeen per cent which may be received
upon each dollar by the owners OF government
curites. system that produces such results IL
justly Icgaruc1 as iaVOrlnx lew nj the expense or
the many and has led TO the further inquiry whether
our bondhoiders in view Of the large profits which
they have enjoyed. would themselves be averse 10
settlement oi our Indebtedness upon plan which
would yield them n 1air remuneration and ut the
same time be just TO the taxpayers OF the
nation, Our national credit should be sacredly
observed; but in making provision for our
creditors we should not forget what Is due 70
the masses OF the people. 1t may be assumed
that thu holders OF our securities have already
received upon their bonds larger amount than their
original investment, measured by q gold standard.
Upon this statement OF facts IL would but Just
and equlraoe that the six per cent interest paid
by the government should be applied to the reduce
ton OF the principal IN semiannual instalments,
which In sixteen years and eight months would liqni
date the entire national debt Six per cent In gold
would az present rates be equal 60 nine per cent In
currency and equivalent to the payment OF the debt
and half times In traction less than seventeen
years This, in connection with all the other adyan.
fages derived from their investment would AFFORD TO
the public creditors fair and liberal compensation
for the OF their capital and with this they should
be satisfied. The lessons VI the past admonish the
lender that IL In not well To be xlous In exact