The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1870-11-19
rhe National Dcbt-When should II he
PRide


A great deal has been said in and ont of
Congress, in electioneering speeches and
through the press about paying Of the national
debt, and the republicans have endeavored to
make this great point in favor of their party
and the administration. Nero was said about
and greater stress laid upon the rapid liquida-
ton Of the debt under General Grants admin
istration than any other subject during the
late elections. In fact, the policy of paying the
debt of rapidly is one of the chief planks of
the radical platform for tho future, and one by
which 1t is expected the most political capital
eau be made.
This undoubtedly sounds very WELL The
liquidation Of the debt at the rate of hundred
millions or so year is gratifying fact. But
thoughtful people will ask where the money
GENES from. The taxpayers know very well
that they are overburdened to produce the re-
suit. Secretary Boutwell, has not u ma
gician's wand by which he can call up
treasures from the deep. Every dollar
comes from the pockets of the people, and
the larger the amount collected the
greater is the cost of collection. The net
receipts of the Treasury for the quarter end
Ing September 80 of this year was over a
hundred and fifteen millions of dollars This
is at the rate of four hundred and sixty
millions year. A trife more than half the re-
ceipts was from customs-that is, $57, 729, Alb,
and nearly fifty millions CAM from in
ternal revenue. If we reckon the annual in
terest on the debt at a hundred and thirty
millions we find that at the present rate of
income the administration has three hundred
and thirty millions year for current expenses,
independent OF interest on the debt, and to
apply to the payment of the principal of the
debt. The annual expenditures, exclusive Of
interest on the debt ought not to exceed
hundred and fifty millions year. That
would be more than double the sum expended
previous to the war, ten years ago. But ad-
hitting this really large and unnece ssary
current expense for conducting the govern
went, that added to the interest on the debt
amounts to two hundred and eighty millions.
This would leave q balance, at the rate of the
present income, of hundred and eighty mil
lions year to be applied to the payment of
the debt. No wonder that the debt is being
rapidly reduced under the present administra-
lion. With such resources no government
could do otherwise. Ii we allow the admins
fration the credit it claims fer augmentng the
revenue by faithful collection of taxes, the
Fact still remains that all comes from the
pockets of the people, and that they are over
burdened to produce this result.
Here the question arises, is it good policy
Or just to make the present generation pay the
whole of the debt Or the larger portion of il
Should those who fought the battles of the
war, who have suffered so much in their
material interests in consequence of it, and
who have paid already an enormous amount
OF current war expenses and Of the floating
and permsnent debt be called upon to pay
the whole Future generations will reap the
benefit OF the war more than the present one.
The establishment OF the Union on firm
basis and the removal of the causes which
endangered its perpetuity have been accom-
plished by the people Of the present time, and
accomplished, too through so much blood,
Has not the cost been great enough already
to them Ought not our children and those
who will come hereafter to enjoy the blessings
we have secured bear q portion of the cost !?
1t is but just they should do SO.
Would it be good policy to leave the pay
ment of the debt to the future? Not en-
tirely, but portion Of it. To cease paying
the principal altogether would not be agree
able to our people, for the idea Of perpetual
debt is obnoxious to them. There is an ineradi-
cable impression on their minds that large
national debt is incompatible with free institu-
lions; that it might tend TO establish an oil
garchy, and that nations, like individuals,
have greater freedom of action when not en-
numbered by debt. No government or party
could stand that should propose TO perpetuate
our debt or that should not do something to
provide for its liquidation. But there is no
necessity to pay it off now at the rate of a
hundred and fifty or hundred millions y
year. To do so is neither just to the present
generation nor good policy. A much less sum
appropriated to this object annually, certain
sum fixed by law, however, in the shape of a
sinking fund, should be provided. The peo-
pie would be satisfied if they knew the debt
to be in constant process Of liquidation, il
even the reduction should not amount to over
twenty or thirty millions year. Another i'm
portant consideration is that it may be a benefit
to the country to have for some time, at least, a
national stock in which surplus capital and the
funds of institutions can be invested The
debt affords that advantage now, and it would
not be well to disturb too suddenly this state
OF things. Besides, a national debt has con
sentative influence by rallying to the support
Of the government large class of people who
have property in it.
1t may be said that by deferring the pay