New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1868-03-13
AROLJSHTNG TAXES.

Congress has abolished the Excise on Cotton,
which reduces the Revenue by about Twenty
five Millions per annum. The House has
passed an additional bill, abOlishing the Excise
on Home Manufactures geneIally-Liquors, To-
bacco. and Refined Petroleum constituting the
exceptions. This measure, should it become a
law, viii reduce TIE Revenue by a still further
aggregate Of Seventy-Five Millions, making the
total reduction One Hundred Millions
Can we afford so great reduction VIII
it not cripple the Treasury at time when 1t
especially needs TO be strong9
Our Government owes gigantic Debt OF
Twenty-Five Hundred Millions. whereof Two
Billions are drawing interest at ratios ranging
from Z $40 Currency down TO (gold) per
annum. The bulk Of this Debt is funded IN
" Five-Twenties THAT is, six per cent (goid)
bonds. which the Government may redeem
when stley have run FIVE years. but is not
OBLIGED TO redeem till they have run twenty
years respectively
Some of these Five -Twenties' having been
issued in 1892, the Governments option TO re-
deem has already matured on them; and 1t 10
rapidly maturing on the residue.
We ought TO be able to replace every one Of
these. SO fast as it shall mature, 10y new bonds.
running from twenty to fifty years, and drawing
an interest of 4, d, or at the utmost per cent
Could we do this, the saving Of interest would
of itself pay off and extinguish the principal
of the Debt within thirty TO fifty years.
But this cannot be done while the Govern
ment is financially weak, the Treasury depleted,
the Revenue falling Of, and capitalists appre-
hensive that the interest may not DO punctuaLy
paid.
We object, then, to all the Regulating
schemes now current, that they arc as foolish
as they are villainous-that they tend TO inn
poverish both Government and People, by dis
aiding us to borrow at low rates in order TO
replace in Peace the loans which we had TO
make at high rates while involved ia perilous
War.
And we likewise object TO q meager, dwin-
ding Revenue at this crisis. In our judgm ent,
if the Treasury could have been enabled to
pay off and extinguish (not merely shift One
Hundred Millions per annum of our funded
Debt in 1907, and could repeat the operation in
1SCs-all tho time appearing strong and con-
fdent of its resOurces-we might now be fund
ing our Five-Twentes as the five years option
natures in long bond at a, or in short one
at per cent.
This, then, is our objection to the course on
which Congress seems bent-that every dime
distracted by 1t from our present burdens adds
a Dollar to their ultimate weight. And we pre-
fer to bear heavy taxation a few years longer
rather than pay heavy interest On our great
Debt for generation.
To-day, the credit Of the United States in
the great money markets of Europe rules lower
than it did when Congress met. And this for
the excellent reason that capitalists find our
legislators honey -combed with rasCality, and
demagogically intent on swindling our credi-
tors, or (what is the same in effect bullying
them into a surrender Of their rights by threat
ening to swindle them.
Between the higlwayman who levels his pis-
tOl at your breast and exclaims, "Your money
DOR your life!r and the statesman who says to
public creditor. "Take less than your honest
educ, or you will fare worsem the former Is
of course the better man. Villain as he 49, he
may possibly not be foolish villain, while the
repudiator must be.
Congress, we hear, is bent on large retrench-
ments and economies on every side. We arc
very glad to hear it-shall be still gladder to
see it. But il is not best to discount these re-
trenchments too soon. Let us at least scent the
fox's track before we sell lis skin. And we fear
that the $100,0O0,000 saved to our taxpayers by
the measures Of Congress will cost them three
or four hundred millions in the long run.
A Washington dispatch says that the House
Committee of Ways and Means proposes to
carry on the Government for the ensuing Gs-