The New Orleans crescent. [volume] (New Orleans, La.) 1866-1869, 1868-01-15
TAXATION AND EXPENDITURES.

|
and moral reflections. 1t contains some
highly interesting features, which, however,
have to be sought through an appalling pro-
lixity of statements and calculations. Taken
altogether it is a praiseworthy plea for re-
trenchment of public expenditure and reform
in the administration of the public revenue.
But so voluminous a document was hardly
necessary to prove the advantage of economy
and honesty in the financial affairs of the
country. Whether Congress was ignorant
up to the present time, of this rudimentary
principle, principle taught in the very horn
book of craftsmanship, or whether that re-
markable body was serenely Indifferent
thereto, in its high preoccupation with the
political chemistry of resolving the "best
government upon which the sun ever shone"
into anarchy with the solvent of negro suf-
frage, the day lis too late, in either case, to
| hope that it will profit in considerable
| degree from the instruction offered it. by
| Commissioner Wells. His statistical tabula-
| tons and his arithmetical Celebrations are
likely to produce about as profound an i'm
preston upon the authors of the reconstruc-
ton follies aud iniquities, as the reading of
the decalogue and criminal code would pro-
duce upon the most inveterate rogue that was
ever committed, or deserved to be commit
ted for life to the penitenhary.
Commissioner Wells recommends, as inds-
| pensable to the maintenance and develop
ment of the tax-yielding resources Of the
country, large abatement of taxation; aud
ha 1o,,N 10
such an abatement, retrenchment in the fol-
lowing items to be absolutely necessary:
First-That all expenditures for the navy be
restricted to an amount merely sufficient to main
tain the police of the seas, and to preserve the
| public property from deterioration.
| Secondly-That the numerical strength Of the
| army be not increased, but reduced, as soon as
practicable; that 70 appropriation be made for
! ordnance except what is necessary for immediate
! use, or for Notifications beyond what is required
| to keep the same in repair.
Thirdly-fhat no appropriation be made for
public works, other than Notifications, except
such as are of the most urgent necessity.
Fourthy-That, 80 long as the necessities OF
the nation are paramount TO those Of individuals,
no claims for damages sustained in consequence
OF the rebellion be either paid or considered.
Ffthly-Tbst the heads of the various depart.
ments he required by Congress to practice the
most rigid economy, and to reduce their employees
TO the minimum number requisite for the dis
charge Of the public service.
sixtbly-Thst DO money be appropriated for
the fnrther purchase of foreign territory. and
that no commercial treaty with any foreign rs.
tim be ratified Of character calculated materi.
ely 10 diminish the CUSTOMS revenue.
The commissioner believes that by an econ
omical policy such as above indicated, the or
binary expenses of the government might be
reduced TO one hundred and forty millions from
nearly two hundred millions. Even when thus
reduced, they would amount to an excess of
one hundred per cent. over what they were in
the fiscal year of 1861. To the one hundred
and forty millions would have to be added one
hundred and thirty millions to meet the in
terest on the public debt; an addition that
would make an aggregate of two hun ired and
seventy millions. Beyond all this, the COM
missioner thinks that fifty millions should be
annually set aside for extinguishing that much
of the principal of the public debt This
would raise the total expenditure and con-
sequently the total demand from taxation, to
three hundred and twenty millions. The
necessity for su.h an annual provision, while
the principal of the public debt 10 not yet
due, is by no means obvious. There is more
urgency for relieving the taxpayers from pre-
sent dispensable burdens, and thus enabling
them to increase their capacity to meet future
demands upon their taxable resources, than
there is for anticipating the unmatured claims
of bondholders. In relation to this matter,
it seems to us that the usually clear-sighted
commissioner is found nodding. He evil
IDENTIFY lost sight of the maxim of Say that
the best tax is the least tax, and the inan-
cial philosophy Of Turgot who held that the
indispensable basis of public credit and of
a correct and effective revenue system is the
development of the productive industries of
the country.
Commissioner Wells makes the following
comparison between the financial resources,
as well as financial exactions upon the people,
during the war and at the present time
II therefore appears that during the years from
1861 To 1896, labor and commodities were con-
tinually Withdrawn from the productive employ.
ment Of peace TO the destructive occupations of
war, and Il at the measure OF this unproductive
diversion was in excess of s7l2 600 900 per aunum
and yet during the continuance Of all this dram
the Northern and Pacific States did not cease to
make real progress in the creation of substan.
tisl wealth. Thus, the aggregate of the Northern
crops, measured in bulk quantity and not in
money, did not decrease, but increased; the area
of territory, placed under cultivation was con.
tinusly enlarged railroads continued to be built,
miues to be opened, and mills, stores and dwell.
hngs - be erected. But hostlties have now
ceased and peace has returned; and with such
change in the condition OF affairs the question be-
comes both pertinent aud suggestive: il portion
OF the country could contribute of its surplus
labor and capital an annual value Of s2l OF
per cdpiiG, for destructive purposes, viii it not be
easy for the whole country, with its labor and
capital restored TO productive empoyments, to
contribute s. 70 per CAPITA for the payment of 10.
terest, expenses and the reduction of the debt?
And yet the payment of this sum will meet at
present an laUnusl expenditure of $4,000 900
for ordinary expenses, $3.50 600 600 for interest
and $50 600 0O0 for the reduction of the principal
of the debt; and if the same rate of per capita
taxation be continued for the future, il will ex.
tngush the entire principal of the debt 10 less than
twenty years. even if it shall become necessary to
add to the above estimate Of $4,000 600 for or
diuary expenses a sum equal to 81 per head on
the average annual increase of population, which
average increase may be expected to augment
the population Of the United States, by the year
1854, 10 nearly sixty millions go O90 000.) Fur.
thermore, this proposed rate of So 70 per capita,
which is only about three-fourths of the rate of