Evening star. [volume] (Washington, D.C.) 1854-1972, 1870-12-05

taxation as An essential condition to the success
of the PROPOSED loan. The circumstances that
war was declared between France and Prussia
simultaneously with the passage OF the loan bill
put it out Of the power OF the Department "
make the negotiation as had been expected
The large revenues. however,, OF the Govern
ment continuing without material abatement
until the present time, improved the credit OF
the country enabled the Treas ury Department,
by weekly purchases, to reduce the amount OF
surplus bonds offered for sale, and contributed
to depreciate the market value OF gold.
also expressed the opinion that the settled
policy of the country should contemplate rev
enue suff cent to meet the ordinary expenses of
the government, pay the intest on the public
debt, and from twenty-five to fifty millions OF
dollars of the principal annually. The reduc-
ton Of the public debt since the 30th day OF
June last, has been 50 great as to render 1t eer-
tain that the total reduction fer the present ifs
cal year will exceed sixty millions OF dollars.
country during the next eighteen months is
likely to be such as to show surplus for the
fiscal year ending June 80, 1872, OF about forty
The principal of the public debt on the last
day Of November, 1870, not deducting moneys
on hand, was 50 AIS, 673 ,04443. Of this amount,
s3s5 2G9 q, .OS was represented by United States
notes and fractional currency, not bearing
interest. The banks of the country, acting
within the authority of existing laws, will
require about 1888 900 900 of bonds to be placed
Should the present system OF furnishing paper
circulation for the country, partly by the
Treasury and partly by the national banks, be
continued. or the entire circulation be furnish
ed by the Treasury, or by the banks, the credit
OF the United States will be the security for the
redemption or the notes. From this view of the
policy of the country it follows that about
unpaid, existing either in the form OF Treasury
notes in circulation without interest or in bonds
owned by the banks and held as security for tine
redemption of their notes, and that only about
81 600 ,o00 ,OCo OF the principal OF the debt is
subject to payment.
The financial prospect, although highly favor
able, 10 not such a. to warrant importa
changes in the revenue system at the present
session OF Congress; but should the result during
the coming year meet my expectations, it will
be possible at the December session of the
Forty-second Congress to make very material
reduction in the revenues without impairing
the ability OF the government to make satisfac-
tory payments OF the public debt. The reduc-
ton already made has been advantageous to the
country, not only in the particulars indicated,
but in other respects hardly less important.
There Is much evidence tending TO show that
war has contributed so much to ihe diffusion OF
republican opinions in Europe. The spread o
these opinions stimulates emigration from
Europe, and at the same time prepares the way
for the establishment OF free institutions on
that continent. Nor can there be any doubt
that policy accepting the debt as permanent,
would retard emigration from Europe, especi-
ally OF the reading and rejecting classes.
Whatever Arguments may be adducedor what
ever theories advanced, the fact must ever re-
main that q public debt is a public evil II ID
especially burdensome to the laboring classes,
and 1t is, therefore, in their interest to provide