The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1870-11-29

Great Measure for tho Counsry-Ieeduc-
ton of Taxes.
The first thought Of any sensible man Of
business is to improve and extend his business
and to use all the resources within his reach
for that purpose. He does not cripple his ope-
rations by taking up his notes before they are
due. Indeed, he uses his credit freely within
the limits of his ability TO pay, in order that
he may develop his trade and resources. He
both pays his way and becomes richer by such
course. The same principle applies to the
government. If it tax the people heavily in
order to pay off the public debt rapidly,
and when payment is not required,
the productive industry and trade of
the country suffer. The money taken from the
people in exorbitant taxes paralyzes industry
and retards progress. Every hundred dollars
taken by the government would, If left in the
hands Of the people, produce larger amount
and make the country richer. The hundred
and fifty millions or upwards Of surplus
revenue now raised for paying of the debt
would add to the national wealth q far greater
amount annually if not taken from productive
industry. It is false eoonomy-it is the
reverse of economy-to overtax the people for
the purpose of saving the six per cent interest
on the debt.
If we had reached or approached the
limit of production in the United States
we might feel anxious about the debt
but when money is in such demand to
develop our boundless and varied resources
when every dollar expended In such
development soon produces two-our policy
should be to increase the national wealth
rather than to burden the people with heavy
taxes in order to liquidate the debt in few
years. Like the merchant who uses his credit
wisely, and becomes richer by doing so, the
nation will become wealthier and better able
to pay by reducing taxation and leaving por-
ton Of it's indebtedness to be paid in the
future. Should the incubus of our present
enormous taxation DO taken off the national
wealth would be more than doubled in gene
ration, and the next generation, consequently,
would be doubly able to pay the debt.
W. d9 RQt cirque that 4 national AL gsbt is i. q
national blessing. It has, no doubt, con-
investment Of surplus capital and for
securely placing the funds of certain institu-
tons; but with us there is comparatively little
surplus capital, for there are 80 many ways
of using it in this country. We are in diff
ferent situation in this respect to England and
other countries of the Old World. Nor is
large standing national debt agreeable to the
ideas Of the American people or to our repub-
lican institutions. We should continue to pay
something annually, but not hundred and
fifty millions or a hundred millions. From
twenty to thirty millions year applied to this
object would be sufficient. A permanent sink
ing fund, beginning with this amount, might
be established, and then augment it from year
to year as the national wealth and population
may increase. There would be no diff
Guilty in graduating the amount Of
sinking fund in this way. The public
would be satisfied as long as this process of
liquidation should go on without interruption.
All would look to the future extinguishment
of the debt as certain, while the burden of
taxation to accomplish that would be light.
It would be unjust to make the present genera
ton, which sacrificed so much blood and trea-
hundreds of millions Of the debt, pay the
whole cost. Our children and the millions of
those who will come to enjoy the blessings Of
the Union ought to bear portion Of the debt,
particularly as they will be far more able to
bear it. The forty millions Of population will
n; ~ In 0r
years or so, and the wealth of the nation will
be trebled
The President and Secretary of the Treasury
should recommend Congress to reduce taxa
ton so as to bring the revenue down to three
hundred millions. That ought to be ample
mcnt, payment of interest on the debt and a
surplus of twenty-five millions or so for sink
ing fund. The revenue comes in now at the
rate of four hundred and fifty millions year
and upwards. To reduce it to three hundred
millions would take off a hundred and fifty
millions of taxes. What boon to the coun-
try this would bel How industry would
revive! Prices would go down; the con-
dition Of the farmers and laboring people would
be vastly improved; we should be better able
to compete with foreign producers in the
markets of the world; there would be more
production, and trade and commerce would
revive. If the object Of the President and
Secretary Boutwell, be to make political CAPT
tai by paying off the debt so rapidly, as it
seems to be, they could accomplish that much
better and become more popular by reducing
the taxes. Let us hope they may adopt this
policy. But if they should not Congress ought
to take the initiative, and, as General Butler
intimated in his late address at Boston, should
override the administration. Half measures