The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-11-16
RumOred Financial Policy of the Admins.
trRtiOn.

trnti0n.
We have rumor from Washington to the
effect that the President in his forthcoming
message to Congress, will make particular
reference to the national finances, and that he
will suggest the desirability Of adopting mea-
sures to insure speedy resumption of specie
payments. With regard to the action of
General Grants administration on the national
| finances nothing can be said but in commenda-
| ton. The President set out with the purpose
to execute the laws and to collect faithfully
the revenue, and he has succeeded. We see
the result in the enormous returns Of the reve
nue., in the expenditures that have been cut
down and in the surplus of forty-fye millions
applied to the reduction of the debt, in excess
of the sinking fund, during period of eight
months of his administration. So far, then, as
the administrative action Of General Grants
government in this matter goes the President
can speak proudly to Congress, and the country
will endorse what he may say.
The policy, too. Of the President as indi-
Gated by our Washington news, relative to
funding the debt at lower rate of interest
and Of keeping mp the income of the Treasury
till that can be accomplished, will meet with
the appreciation of both Congress and the
people. II is the common sense view of the
subject. In all such matters General Grant is
eminently practical. Every one, except per-
haps, the bondholders, will admit that the
interest on the public debt is too hph-that
the burden upon the people is too heavy-and
that the result OF this high rate Of interest and
untaxed investments in government securities
is to absorb the active capital Of the country
and to check our material progress.
People will not invest in enterprises
which tend to develop the country
while they can get six per cent in gold or
eight per cent In currency on money put into
United States bonds which are free also from
taxation. In every way, both as a heavy
burden upon the taxpayers and as absorbing
active capital that would be employed in the
development of the country, the present high
rate Of interest on the debt is a great evil and
ought to be reduced. Then it is wise and
statesmanlike idea to keep up the large income
Of the Treasury by not prematurely taking off
The taxes, so as to raise the credit of the gov
eminent and to fund the debt on the lowest
| terms possible. 1t is evident, too that the
President does not regard the national debt
national blessing; for he wisely desires the
liquidation Of it as soon as possible. A large
permanent debt like great standing army,
is inimical TO republican institutions and free
dom and should be got rid of as soon az prac-
tcable.
Now, however, we come to subject on
which the President is less practical, if his
views be reported correctly-tbat is the sub
ject OF returning to specie payments. 1t is
said he will suggest the necessity of speedily
returning to or forcing specie payments True,
this report comes with the qualifying remark
that the President has not yet determined
upon the manner of efeciing this object, and
that he may leave the entire question to Con-
gress, after merely suggesting that something
should be done. We have more confidence in
this last statement about the President not
having determined upon the manner Of return
ing to specie payments than in the practical
hility OF the idea. The truth is General Grant
win 90 beyond his depth il he attempts to
carry out the notion of the on-to-specie pay
ment theorists. Eminently practical as he Is
in military affairs and in administrative action,
and remarkable as he is for strong common
sense, he will plunge into waters beyond