Delaware gazette. [volume] (Delaware, Ohio) 1855-1886, 1870-02-11
TEaT1 TAX aUEsTIOK-THE TWO
EXTREMEs.

The folloWiDg from the New York
IadepeadeRt in relation 10 the mooted
question of tax reduction we take
pleasure in commencing as sensible
and jadicioas
Itisa fact that the Government
owes a bonded debt of more than two
billions, requiring an annual interest
of about one hundred and twenty
millions, and also anon-interest-bear-
ing debt of between three and four
hundred millions more. There are
but two ways of paying this debt
6rst, by a distribution of the whole
amo1nt among the people in the form
of a summary tax levy or, secondly.
by a rate of taxation that viii leave
an annual surplus for the gradual and
continuous extinction of the debt.
The first of these methods no one adj
voeates and hence the whole ques-
ton IS, whether our taxes shall be
kept up to the point that will yield a
reasonable surplus, or be reduced so
as simply to meet the necessary exc
penses of the Government. In the
one case we shall continue the work
Of extinguishing the debt and in the
other We shall merely pay the interest
upon it, and hand over the principal
to posterity.
Nov, in respect to this question
there are two classes of financial ex-
tremists. with neither of which do we
agree. From the one we hear the
constant shout Down with the
taxes Take off at least q hundred
millions from the tax-burden of the
people Relieve this enormous pres
sure upon the industry and trade Of
the country Let the public debt for
the present take care of itself ! Let
| future generations, richer and more
numerous, bear the load of payingit u
The other class cry as Justly for heavy
| taxation and the extinguishment of
| the whole debt IN the shortest posi-
bic time. There is force in the argu.
ment urged by each class. Sevare taxa
| ton is undoubtedly an evil which
should be avoided as far as may be in
consistency with the public interests.
So also the debt is an evi which
should be removed at the earliest prse-
tieable period. The country is suffer-
ing from both Of these evils, and must
for some time to come. We cannot
continue the process of payment with
out adequate taxation and we cannot
have this taxation without more or
less feeling its pressure upon the busi-
ness of the country.
What, then, Is the true policy to be
pursued =? We do not think that it
| lies In the financial dogmas of either
class of extremists to whom We have
referred. To relinquish the work of
liquidating the debt, SO nobiy and
| successfully pursued since the close
! NJ hnv e<7so iNVT L.,
mencement of the present Admins
tration-would be a great mistake, at
| tended with more evils than it would
obviate. At the same time, we see no
| practical necessity for so precipltatiDg
this work that nearly its whole weight
will fall upon the present generation.
The surplus of the Government at
the present rate of taxation. with the
economy and vigorous collection of
the revenue since General Grant came
into power, now amounts 10 more than
La hundred millions dollars per aunum.
| Laat year SIS, 900 GOO were paid for ex-
! ira bOunties, and S7,500,0 600 in gold
equivalent to $9, 100000 in currency
i were paid for the territory of Alaska.
Both Of these sums will be q clear
gain IN the expenses of the current
year. 1t is estimated also that the
revenue has an elasticity, or an annual
increase resulting from the growth Of
wealth and population, which is equal
to about $15, ,000, 600. Some $90,000,-
600 of the debt were paid during the
last calendar year. 1t is easy to see
from these items that the surplus Of
the present year, at the present rate of
lrevenue, cannot be less than S120, ,000,-
600.
In view of these figures we come to
the conclusion that Congress may and
| should reduce the taxes, and thereby
lessen the surplus so as to pay about
$50, 600, 600 per annum upon the debt.
This amount annually invested as a
tsinking fund at six per cent, will pay
the whole bonded debt of the United
States in tWenty-three years. 1t is a
fair medium as between those who
would bring down taxes simply to the
expense account, and let the debt
shift for itself, and those who would
| keep up the taxes for the sake Of pay
ing the debt at the rate of 100000, 600
a year. 1t preserves the debt paying
policy, and at the same time lessons
the present burdens of the people.
We think it wise politically and fnan-
cially, and hence express tho hope
that Congress at its present session
will provide for reduced rate Of tax
alton. We are persuaded that such j.
the prevailing wish of the popV'
sentiment, "a