The New York herald., 1868-03-14

The sweeping measure of Mr.. Schenck, re-
ported from the Committee of Ways and Means,
to repeal the Internal Revenue tax ON the
long list of articles which we published
yesterday, together with other internal taxes
previously abolished, will reduce the revenue
of the government hundred millions year
or more. This, then, Is highly important
bill, and naturally suggests the inquiry whether
the government can afford such reduction in
It's income and for whose benefit the taxes are
to be abolished. From the almost unanimous
vote in favor of the bill in the House OF Repre-
sentatives there being only two against 1t out
of hundred and twenty-fou votes and, con-
ssquently, from the probability that It will pass
the Senate with little or no modification, 1t is
evident that Congress believes the reduction
may be made. But is not this reckless legisla-
ton? Is mot Congress rushing blindly into
extraordinary changes without calculating the
results? Or is this not measure concocted
for political purposes, just as the elections are
coming off, regardless Of the wants OF the
Treasury or the consequences to the country
The amount of revenue coming In latterly,
we believe, has not been more than the Treasury
requires for current expenditures and the IN
terest on the debt, and 1t Is more likely to
decrease than to increase from natural causes
for some time to come. To meet the wants OF
the government, therefore, should Mr. Schencks
bill become law, it will be necessary to cut
down the expenditures Immediately hundred
millions or more. Is Congress cutting them
down or likely to cut them down as much as that?
Can 1t do so, indeed, in the present condition
of the country2 1t would require reduction
of over thirty per cent in the expenditures of
government all around to meet such a sweeping
reduction in the revenue. We see no prospect
of this, no efforts to that end The few hum
dreds of dollars here and the few thousands
there which Congress is pairing down and
making great fuss about amount 70
little. They are like drops in bucket.
It is true the estimates of the War
Department have been reduced few mil
lions, but looking at the condition of the
country, at the military despotism in the
South and at the hostile Indians, to say nothing
of contingencies that may arise, we have no
doubt that that department will be under the
necessity of appealing to Congress hereafter
for deficiency bill. Then the pension bills and
numerous other bills calling for money which
are being slipped through will probably require
nearly as much from the Treasury as the amount
reduced for the several departments. While
Congress is stopping one hole it is opening
others through which the public money runs
out. If Mr.. Schenck's bill should pass the
Senate we shall probably find at the end of the
fiscal year the Treasury empty and the debt
increased.
OF course it would be very agreeable to have
these internal taxes taken of, as it would be to
have the income tax and the duties on tea,
sugar and other articles of necessity in general
use taken off; but can the Treasury do with
ont them? The abolshment Of these internal
taxes will benefit few except the manufac-
turers. Mr.. Schenck's bin is for their special
advantage, and the rest of the community will
have to pay for it in some other way. New
England will be chiefly benefited, and the bill
appears to have been very adroitly brought
forward just at the time the elections were
about to take place there. We understand it
acted like q charm upon the manufacturing
population Of Manchester and other towns in
New Hampshire and contributed greatly in
turning the election for the radicals. The in
PRODUCTION Of this bill, therefore, may have
been only political dodge, though the cute
people Of manufacturing New England may
hold Congress, over which they have SO much
influence, to the measure.
But the worst feature of this reckless cutting
down of the income Of the government will be
seen in its effect upon the public credit. 1t is,
in fact, a sort of incipient and sinister repudia-
ton. 1t cuts off every opportunity of reducing
the principal of the debt Indeed, the debt in
all probability must be increased. This, of
course, will destroy confidence both abroad
and at home, and the taxpaying people will
become restless under the prospect of this
enormous debt being perpetuated and probably
increased. 1t is the first step, and very long
one, toward reputation. Talk of Pendleton,
Stevens, Butler and the Western people being
repudiators because they advocate the payment
of the debt in legal tenders, why, none of
them 20 so far as Mr.. Schenck and this
Congress in the way of reputation.
The former would pay the debt in the
same money as received for it, and as all other
debts are now paid in, but the latter cut of
the means of paying anything at all. They,
and they alone, are the practical repudiators
Stop paying the debt, and the people will
soon become discouraged and talk repu-
diation. Increase 1t in time Of peace, as
will be the case If Mr.. Schenck's bill passes
the Senate, and reputation will become a
familiar and popular word. Let Congress
beware how it plays with FIRE; for such stu
pendous national debt in republic like ours is