The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-09-11

the campaign stump orators and party news
papers about the public debt, how much it has
increased or decreased, how it should be paid
and whether the United States bonds should
be taxed. These orators and newspapers
generally know little Of the subject and make
it about as clear as mud by their discussions
Some maintain that the debt has been actually
increased, though the figures do not represent
it 50; while Mr.. Atkinson, of Massachusetts,
and several radical organs, taking the public
debt statement just published as the basis of
argument, make out that it has been reduced
since the war more than eight hundred millions
of dollars. Why did he not 60 back further
and take the enormous amounts raised from
the people and expended during the war as so
much in liquidation of the debit He might
thus have carried up the figures to two thou
sand millions. One statement would have
been just as reasonable as is the other. To
estimate the proceeds of the war loans and
war revenue as 80 much applied to the reduc-
ton of the debt during the period referred to
is simply absurd. We must come down to the
time after the war was ended, when there was
no longer any necessity for an expenditure on
the war scale, and compare the expenditures
of the government with the income to ascer-
tain the truth relative to the management of
the finances.
By the official statement we find that the
debt was, July 81, 1865, just at the close of
the war, So, 757, 253, 275, and at September l.,
1868, 1885, 6l4,3l3. Thus the debt has
been reduced nominally in figures during the
last three years and one month of peace
1921, 638,962. The receipts of the govern
ment for the same period from different sources
have been in round numbers over
81, 800, 100000; that is, from internal revenue
upwards of $500, 100000; from customs
$3.50, 900, 900 in gold, which at the premium it
has commanded during the past three years
amounted to 1910, 900, 900 in currency at least ;
and from direct taxes, sale of government
stores, premium on the sale of gold, sale of
public lands and other sources nearly
5000. O00,0 900. Indeed, we have no doubt the
otalreceipts have reached fully 81, $50, 900, OO0
Out of that 1921 1888, 1862 of the debt has been
paid, leaving over ST. 600, 900, 900 for the three
years expenditure, or at the rate of more than
1888, 900, 900 year. But it is said there was
a large sum due in July, 1865, for pay of SOL
diers and other arrearages which ought to be
deducted from the current and annual expendi-
data from which to make an estimate of the
amount, but it could hardly have reached
over $500, O0O, 900 in all. Taking that as the
sum, and deducting the 1921 ,638, 962 OF debt
paid the actual current expenditure of the
including the interest ON the debt,
has been more than four hundred and thirty
hree millions year or, exclusive of the inte-
est on the debt and simply for running the ma
,hinery of the government, about three hun
lred millions a year. This is rather under
amount the government cost just before the
war. 1t is the peace expenditure under radi-
cal rule.
These same newspaper organs and campaign
speakers that make Figures lie in order to
blind the public and to help their own poiti-,
cal party are opposed to the bondholders being
taxed, and labor necessarily to force specie
so that the wealth of the
may he increased thirty
to forty per cent. They look only at that
interest and lose sight of the crushing burden
of the debt upon the industrious classes. They
demand payment in gold for bonds which cost
on an average only about fifty cents on the
dollar. The bondholders are drawing six per
cent interest in gold on the original investment
of fifty cents, which amounts in reality to
fifteen per cent in currency The exemption
of the bonds from national and State taxation
favOrs the bondhOlders to the amount of five
per cent probably on their investments, as
with the burden every other kind of
property has to bear. Thus we see the bond
holders are making about twenty per cent in
all on the capital originally invested in the
bonds.
Yet the bondhOlders and their organs cry
out reputation, national dishonor and all
sorts of evils when it is proposed to tax
the bonds. They hold up the law
and the constitution as defence
and entrench themselves behind these.
They are grasping and selfish, and care
not who bears the enormous burdens of the
country if they can escape. But why should
not those who are drawing 80 much from the
government help to sustain it Why should
not this kind Of property bear fair proportion
of the public burden both national and Stata
1t was never intended by the trainers of the
constitution or makers of the law that they
should not. If there appears to be difficulty
in the decisions of the Supreme Court against
States taxing national securities, or in the
laws of Congress exempting the bonds from
direct federal taxation, the bondholders can
be reached in some other way. The people
of this country will never consent to have such
vast amount of wealth EXEMPT from taxation