Evening star. [volume] (Washington, D.C.) 1854-1972, 1869-12-20
lEPORT OF THE SPECIAL COMMIS
S1ONER OF THE REVENUE.
An Interesting Document.

The Secretary of the Treasury to-day sent {
Congress the fourth annual report of the Specis
Commissioner of the Revenue, Hon. David A
Wells, upon the industry, trade, commerce, an
revenues Of the country. Like its predecessor
it is document of much interest.
The experience of another year, the Commits
missioner says reaffirms the principle befor
announced that the progress and growth of tn,
country, through its elements of vitality, viz.
great national resources and an inherent spiri
OF energy and enterprise i'm the people, is i'm !
the impOyerishment and disorder which tn,
stoned.
The national revenue for the fiscal wear end
ing June 80, 1869, was Ss510. .9iS 1922. The
national expenditure for the same period was
S32l, l,-9oos'I5, leaving an excess OF revenue
over expenditure of So, ,453, 1896.
On the LIST of September, 1865, the amount of
the public debt, then at its maximum, was less
cash in the treasury, S2,751 ,6s9, ,511.43. At tho
commence cement of the present fiscal year, July
/, 1869, the amount OF the public debt. less cash
and sinking fund in the treasury, was =. .iSl.-
002, ,4s0.5s, showing a reduction TO that date of
S26e, ,6Sl ,090.S5. Within the same period, taxes
which il continued to the present time would
have yielded, in the aggregate, upwards of
S2JO,UD,t0O per annum, have also been abate,l
or relinquIshed. To find a parallel to such re-
suits, the financial history OF other nations will
be searched to no purpose.
The amount of the public debt on the lst OF
December. 1862 less cash and sinking fund i'm
the treasury, was s2,453 ,55s. .I35.23, making a
total reduction since the 1st OF September, 1865
OF 1904 129 s36.2', and for the current calendar
year, of Se1 ,1iI ,466.02.
The Commissioner thinks this an opportune
time to place upon record the exact cost of the
war. The sum OF Si,1I1 ,9l4, 1883 represents
the cost of the war to the United States Govern
ment down to June 80, 1869. To this sum should
be added the value Of the pensions now paid by
the Government on account of the war, if the
same were capitalized. This, at eight years
purchase of the present annual payment would
amount to about two hundred millions. But
this aggregate, however large. must still further
be increased by other items ii we would reach
the true cost of the war TO us as a people the
above representing only the expenditures of the
National Government. These additional charges
show an aggregate destruction OF wealth, or
diversion OF industry which would have pro-
duced wealth, in the United States since is6l
approximating nine thousand millions of dol
iars-a sum nomlnally in excess of the entire
increase of wealth, as returned by the census
for the whole country from 1850 TO 1860
This, then, was the cost of the destruction OF
slavery; the cost OF compromise. 1t Is three times
as much as the slave property OF the country
was ever worth. 1t is sum which at interest
would yield to the end Of time twice as much rs
the annual slave product OF the South i'm its hest
estate. Without faltering, and without tanner
ing with the public faith, it Is now the duty of
this people to undertake the far easier task OF
payment Tor the service already rendered. If
we hesitate or falter, dishOnor, second ONLY To
that which tolerated slavery, will oyerwhe
the land, and the idea of free people govern
ing themselves will become a scorn and n nv
word among nations.
The present increment of population of the
United States, from the natural increase OF
births over deaths and from immigration il
probably at the rate Of 100 900 per annum as a
minimum.
The number of miles of new railway construct
ed III the United States during the past wear
Will, IT Is believed approximate to five thou
sand; making a total construction since and in
Guiding the year 1865, the year of the termina-
ton OF the war, of about thirteen thousand.
The telegraph system of the United States has
been extended during the past year by at least
seven thousand miles of new wire, as compared
WIN an n 81 and x tMS aSHssnd IN
in 1866.
The industrial resuscitation and deyelopmcnt
of the South is progressing favorabIy. The year
1S6} has also closed auspiciOusly. The aspre-
gate OF the crops has almost uniformly beer
greater, while prices have continued TO prove
highly remunerative. The true diversity of en-
ployment which results from freedom has now
become TO the South for the first time, possible.
and Southern capital can soon be advantageous
ly applied to the manufacture of agricultural
tools and implements leather, wagons. wooden
ware, soap, starch, clothing, and similar articles
These are manufactures in which iron, steel and
cloth are raw materials They employ the larg-
est amount OF labor in proportion to product
and capital, and warrant the payment Of high
wages. On the other hand, what are commonly
called manufactures, viz: iron and steel, and
cotton and wOOllen cloth, are examples of con-
cent? alton. They require large capital, employ
hut few hands, and would naturally come much
later. We already have in the United States an
excess OF cotton and wOOlen spindles, and to in
vest calatal i'll more would be simply a waste
when there are vast needs at the South requiring
far less capital, and warranting much greater
compensation for labor than can be paid in tex
tile fabrics.
The Commissioner estimates that, deductinp
the estimated cost of the war to the government
and to the people, from direct expenditure and
from the diversion of industry and the destruc-
aa Oiv ahnv 90 ADOn mn mn
we should have left s2I 1SS, 900 900 as the accu
mulated wealth of the country at the close OF
the present decade. He estimates the gross an
nual product Of the nation at So ,s25 600 OOO and
dividing this among the assumed number of the
directly productive class makes q per cdpito
product of S6S260; which sum approximately
OF the direct producers OF wealth in the nation.
out of which the whole population have to live,
provide food and clothing, pay taxes and ali
other expenses, and accumulate surplus of
future productive capital.
The Commissioner proceeds to consider the
question, what causes are operating to retard
national development, and enumerates among
them the condition of the foreign trade of the
country; the diversion and Generalization of in
dustry; the subOrdinatiOn Of labor to capital
the failure to use our great natural resources
intelligently; the want cf legislation to promote
a proper distribution of the annual products of
labor and capital; an inflated and irredeemable
currency and unequal taxation, &c, &c.
The Commissioner proceeds to discuss the
to trade, commerce, and industry would seem
to render necessary. Setting aside minor con
the chief elements of disturbance
are to be found in the present condition of the
currency and of the national taxation and il is
through reform In these directions that relief is
mainly to be expected.
The simple, reasonable remedy for the evils Of
imitation would seem to be contraction, pure
and simple, without artifice or indrection. Con-
traction, however, is opposed on account of the
immediate distress which II is supposed would
follow the adoption of such policy. But il
requires no gift OF prophecy to f0retell that the
country must soon experience all the hardships
which contraction could entail, whether con-
traction and the ultimate benefits of contraction
be secured or not. 1t Is morally certain that
prices in almost every department of industry
will sooner or later be disturbed as greatly as
contraction would require; the only difference
being that in one case a temporary hardship is
submitted to for permanent relief and great
good; and in the other Ii will be suffered TO no
purpose, and the causes which produced the
mischief be left as entire and powerful as ever
All the incidents and all the effects of contrac-
ton, so far as 1t involves commercial disaster
and industrial distress, are inevitably coming
and speedily. The only question which IL Is
left us to consider Is, whether we will allow this
experience again and again to repeat itself.
Thus 1t has been shown that the amount of
our foreign Indebtedness was increased during
the past year to the extent Of 500, 600 600
Up to this time the annual adverse balance of
trade which has been experienced since the
close Of the war has been mainly adjusted by
abroad. But 1t is evident that this process can
not hA in6afinfa1v n.