Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1868-06-19
TEMPHES APPEAL.
FINANCES AND THE NATIONAL

I
oonsa the Government has always dis
honestly refused, with now and then an
exception, to pay interest on any claims
against it.
The Pension list calls for over thirty
millions per snnum.
Thus, apart from the current expenses
Of carrying on the Government, ana
without paying any part of the principal
of the public debt, the Government must
nav one hundred and eighty millions per
annum; and the necessary cost of carry
ing on the Government and the Federal
taxes amount to at least three hundred
millions per snnum.
The burthen Of taxation, which was st
first patiently and even cheerfully borne
by the people, begins to press more and
more hardly upon them, because 1t ex-
scts too large 8 percentage OF their
earnings and incomes, and is unjust ana
UNEQUAL Ia its operation 4: and the ex-
enutior from taxation of wealth invested
bv individuals and corporations in Gov
eminent bonds, as it makes the burthen
of taxation heavier on those less able to
nav. increases the discomfort.
Financial endorsements begin seri-
ouslv to threaten the Government, which
Congress seems to be utterly incapable to
avert. The reduction of the debt has
ceased. The last report shows an in
crease of debt Of ten millions; and II Is
certain that there has been no reduction
since the LIST of January.
While additional revenue was needed
10 prevent an increase of the debt, taxes
on manufactures, producing sixty mill
lions per annun, were repealed, in order
TO secure the support of the manufsc-
turing interest for the Radical candidate
for the President. 1t was simply huge
bribe to purchase votes.
The reserve Of coin in the Treasury
has begun to decline. 1t has exceeded
one hundred millions nett: it is now but
seventy millions in excess Of the out
standing gold certificates and this will
soon be reduced by the payment of eight
millions of Mexican war debt, thirty
millions of interest, and seven millions
Of purchase money for Alaska: so that
there will probably not be fifty millions
of coin in the Treasury on the 4th of
Julv next, over and above the amount
deposited there by private owners and
balanced by gold certificates of deposite;
snd the debt will certainly be larger four
months hence than it is now.
We take these figures and statements
from the New York Tribune; and the
source from which they come gives as
surance that they are not exaggerated.
1t is evident that there is not the least
| likelihood Of any diminution of the bur
then Of taxation which presses SO heavily
on the farmer, the merchant and the
mechanic, or Of the public debt
The currency in circulation is In
amount about seven hundred millions,
of which some three hundred millions
are National Bank paper. This is repre-
sented, founded upon and secured by
about three hundred and fifty million
/ Collars in Government bonds, deposited
bv tie Banks, and on which the Gov
erument pays these Banks Interest at
stx per cent. per snnum in gold, the
amount so paid being about twenty-one
million dollars per annum, equivalent to
us,>rly or quite thirty millions In cur
rency, at presentrates.
The banks deposit their three hundred
and. f3ftv nnill;aps In bonds, and receive
in return psrmissiSn 70 issue three hun
dred and fifteen million dollars of their
own notes, for the payment OF which
the deposited bonds are the only secu-
rity. These notes are loaned TO persons
who become borrowers on interest. The
banks thus make 8 large profit on their
Town promises to pay, besides the interest
on the bonds. With $4,000, Ma
tional Bank purchases 800, 600 in bonds,
and receives in exchange for. these some
$50. 900 in notes to be issued by itself On
the bonds it receives annually $4,000 in
gold or its equivalent in specie, as inter-
est; and loans the notes at eight per
cent. or more, besides; thus really re-
ally receiving double interest on the cur
rency at first invested.
This interest is paid by the people, the
working and producing Glasses. Why
should not the National currency be re-
tired, and greenbacks substituted for
them? This would retire the bonds on
which the paper is Issued, and stop the
payment Of thirty millions of interest
per annum in currency, an amount larger
than the whole expenses Of the Govern
ment, under the administration Of John
q Quincy Adams.
Under the present system, the Nation
al Bank bondhOldeF receives from the
Government nearly nine per cent. inter-
est in currency on his bonds, loans the
paper represented by 1t at eight per cent.
more, or employs outside agents to loan
. Il on mortgage of real estate at from
three to five per cent. month, and is
relieved from about three per cent. tax
on his bonds. His aggregate profits are
thus about twenty per cent. per annum.
The load of taxation on the people is
enormous enough, without this In favour
of the stockholders Of the National
Banks. Other Governments have theil
income tax; but none imposes burther
= at all comparable with our five per cent
1t is excessive and unconscionable and,
like the whiskey tax, does much TO defeat
itself. To tax salary, or professional
| income, barely sufficient for mans sup
port, at such rate, when he expendl
every dollar SIS soon as he receives it, anC
may perhaps st the end Of each gear b
In debt, is little less than cruelty. BY
our law, the income Of 8 MECHANIC, al
editor, a lawyer or q physician, requiring
In each skill and labor, which ill-hesltt
.>ther causes may at any moment sus'