The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1870-07-15
he Funding Bin aaA the New Tax and
TarlG Bill.

| 1t is never point Of any certainty who
is to derive the benefit of given law, or
| whether law passed with q certain purpose
In view may not in its enforcement secure q
result directly contrary to that contemplated
by Its trainers. So much attention Is gene
rally concentrated on some one feature in
every measure before Congress that the
general effect is often overlooked, and even no
note is taken of phrases that qualify the appli-
cation of every word. This is especially the
case with legislation upon financial topics,
where so much regard to laws actually In
operation is necessary and 80 little is paid,
and where amendments inserting or striking out
clauses are so frequently made with some small
local point in view and without any refere nee
to their effect when the whole law is con-
strued together Because of this important
fact in the history Of law it is impossible to
say just now whether Congress has done wisely
| or foolishly in the statute framed to fund the
| debt, since, until action is taken on that law,
it is not possible 10 say positively what its
operation may be.
Specifically taken, the measure looks like
good basis for that financial experiment which
has become sort of pet with the Secretary
Of the Treasury. 1t appears, In fact, good,
sound measure for the national finances. 1t
provides for the issue of bonds for fifteen
hundred million dollars at four, four and
half and five per cent, which shall be sold
not lower than par for coin, and the pro-
ceeds of which shall be applied to the purchase
of United States six per cent bonds,
| which shall then be destroyed, or the new
bonds may be exchanged for the six per cent
bonds, par for par. AS the new bonds bear
considerably smaller interest than those whose
places they are intended to take, here is
great, obvious gain. Power 10 given to the
Secretary Of the Treasury to declare his readi
ness to pay all bonds that have become re-
deemable, and in three months after he shall
have made such declaration in regard to any
specified bonds the payment of interest on
such bonds will cease. Thus he has it in his
power to forcibly retire any quantity Of the old
bonds, being limited in this regard only by his
ability to sell the new ones. This power
seems to us to put his ability to sell beyond
all question, for it is not possible to doubt
that the faith Of the government is now good
before the country and the world for larger
sum than the whole national debt, even at
four per cent, and two hundred million
of the new bonds bear five per cent, and three
hundred million four and half The law further
directly authorizes loan that will doubtless
greatly assist the operations of the Secretary
in fve-twenties; for the section in regard to
gold deposits which gives the owner the use of
his gold in the form of a certificate and permits
the application Of sevenLy-6ve per cent of the
deposits for the purchase of bonds can be
regarded in no other light. It is an advan-
tageous loan, too, rs the government pays ON
it only two and half per cent, and uses it to
extinguish obligations that bear six per cent
In favor of the Tax-Tariff bill is to be put the
Congressional estimate Of eighty million dollars
as its possible reduction of the government
revenue. This, of course, is in great degree
a reduction Of the burdens placed upon the
people, and it would be greatly more IN favor
of the bill if we could consider the whole sum
as representing the lessened pressure Of the
U0DC anu BOFcTumcut cApcuScs. DuI We CALI
not. In the reduction are to be counted many
sources Of revenue that, while they gave a
large return, did not Cypress Or embarrass
legitimate trade-were not in the least felt by
the great masses Of the people, and were,
indeed, as proper subjects Of taxation as whis-
key and tobacco. With such taxes swept out
we have retained for two years that Congress
sional outrage, the income tax, the re-enact-
ment of which is distinct, direct and most
mischievous violation of faith with the people,
imposing upon them for years of peace bur-
den that was at first sonly accepted under
pressure of the great necessity of war. The
falsity of the pretence that the retention of
this tax was necessary to secure a sufficient
revenue is seen in the fact of the retention Of
less mischievous taxes, whose abolition was
obtained by lobby, and, In fact, in the COM
mon knowledge that the tax was only retained
because its abolition would Gust small army
Of placeholders. For what we have, however,
we must be grateful, and altogether the flnan-
cial legacies of the session have promise in
them.
THE SARATOGA RAoEs.-The races which
commenced yesterday on the course at
Saratoga Springs have drawn an immense
crowd of pleasure seekers-to say nothing Of
- % xlck, IL.