Rutland weekly herald. [volume] (Rutland, Vt.) 1859-1877, 1870-12-08

establishment OF n agency in the city Of
New York, under the control of the ma
tional banks, for the redemption of theil
issue. The substance of this recommend
alton seems to me not only proper but
necessary. The expenses should be borne
by the banks.
Coupled with these recommendations
take this occasion to say that the banking
system of the country appears to be well
and to answer reasonably the
purpose for which it was established.
It is, no doubt, true that Treasury
notes, representing an equal amount of the
public debt, without interest are the most
Observation-Disclosures for the government,
but it should be considered that the
banking institutions of the country are
agencies by which business is established
and festered. Upon the whole the system
Of banking should be extended only for
the purpose of meeting the demands OF
business, but when the demands are mr.
gent the concession should be made upon
the ground that the prosperity of business
is more important than the mere saving
of interest arising from the circulation Of
Treasury notes. ..-... -t
Regarding the repeal of the Navigation
laws. ha sAys. without undertaking to
specify the means by which it is to be &C.
cannot overstate the impor-
lance of such legislation as viii .aanra
the revival of American commerce."
In referring to the act Of July IA, 1870,
for transporting goods inland in bond, he
says: "Without doubt the act increases
the opportunity for the introduction Of
a. srko &ho -. .D1o
ton of the revenue laws, but the exami-
nation which have given to the subject
in the preparation of the regulations,
leads me to think that the business can
be safely conducted"
He recommends increase of the per-
manent appropriation for collecting the
revenue from customs to the sum of 50,
6OO, 900 for each half year from and after
the Both day of June, 1870. He recon-
mends prompt appropriation for public
in course of construction, and
reviews the condition of thirty-eight
houses, besides revenue marine, marine
hospitals, Alaska fur and seal fisheries,
civil service, asserting that Treasury and
custom-house employees are neither ade-
quately nor propor.ionately well paid,
and closes as follows
In my annual report of December last
advised the continuance of the present
system of taxation as an essential condi'
ton to the success of the proposed loan.
The circumstance that war was declar.
ed between France and Prussia stimuli
with the passage of the Loan
bill, put it out of the power of the depart
ment to make the negotiations as had
been expected.
The large revenues, however, of the
Government continuing without material
abatement until the present time, improv'
sd the credit of the country, enabled the
Treasury Department, by weekly pur'
chases, to reduce the amount of surplus
bonds offered for sale and contributed &c
depreciate the market value of gold.
also expressed the opinion that the set
tied policy of the country should contem
plate q revenue sufficient to meet the or
binary expenses of the government, pay
the interest on the public debt and from
twenty-five to fifty millions of dollars OF
the principal annually. The reduction Of
the public debt since the Both day of June
last has been so great as to render certain
that the total reduction for the present
fiscal year will exceed fifty millions Of
dollars The natural increase of the bust
ness of the country during the next eigh
teen months is likely to be such as to
show a surplus for the fiscal year, ending
June 80, 1872, of ABOUT forty millions OF
dollars.
The financial prospect, although highly
favorable, is not such as to warrant ar
important change in the revenue system
at the present session of Congress, bu,
should the result during the coming year
meet my expectations, it will be impossi
BILE at the December session of the Forty.
second Congress to make a very material
reduction in the revenues without i'm
pairing the ability of the government
to make satisfactory payments of the
public debt The reduction already made
has been advantageous to the country no,
only in the particulars indicated, but il
other respects hardly less important.
There is much evidence tending to show
that no other country since the conclusion
of the war has contributed SO much to the
diffusion of republican opinions in Europe
The spread of these opinions stimulates
emigration from Europe, and at the same
time prepares the way for the establish
ment of free institutions on the continent
accepting the debt as permanent would
retard emigration from Earope, especially
of the reading and rejecting classes
Whatever arguments may be adduced, Oh
whatever theories advanced, the fact mus
ever remain that public debt is a public
evil. It is especially burdensome to the
laboring classes, and it is therefore in
their interest to provide for the constant
reduction of the existing national debt.
This policy will not prevent such
changes in the revenue system from time
to time as will equalize the inevitable bur
dens of our present condition, and within
a comparatively short period.
The taxes may be removed from money
articles of prime necessity. 1t is the
occasion of satisfaction that no other ma
ton ever passed through great war with
90 slight shock to industry and business
ligence from various parts Of the United
States show that all classes, and especi
ally the labor classes, are in the enjoy
ment of more than average prosperity
whether tested by the experience of this
country OF by the present condition Of
other nations no reason can be found
however, in the favorable condition Of
public and private affairs for neglectine
any proper means for equalizing and
diminishing the burden Of taxation, but
it does not justify the statement that tn;
nation can make provision for the public
debt in the manner recommended without
embarrassing its industry or retarding it
progress.
(Signed), GEORGE S. BOUTWELL,,
Secretary of the Treasury.
CAPITAL PUNJsHMENT-A QUERY
The discussion and action in our lat,
Legislature upon the subject of Capita
puniahmont cannot have failed tn interea