, 1870-04-13

PAYING THE NATIONAL DEBT.

WEDNESDAY, APRIL 10, 1870.
PAYING THE NATIONAL DEBT.
The annual budget presented by Mr. I,
Lowe, Chancellor Of the E1chequer of
ENGLAND. and bis motion for reduction Of |
taxes founded tbercnpon, contain some
hints which might be studied with profit By
oDr cnspirical financial authorities at Wash |
incton, The surplus of receipts over e1-
1,auliturcs during the past year would hive
fsrn G77.s,,hnoo hut for the expenses Of
The Ahrssinian war-E4 800. .000-which re-
tiucea .ht net surplus to e., SIC, 900, or
ab,ut S1.,.ooA, 900. On this exhibit Nj.
Lowe proposes to remit the ta1 On soap
md paper makers: to e4ualize the duties
o. English aud foreign bills; to abolish
newspaper stamps; to reduca newspaper
postage 10 half-penny for 6i1 ouncea; to
1etiuce the income tar to four pence in the
mound. j. t.. to about II per cent, and to
lake of half the duty on sugar. These,
with some minor Eeuissions, in favor chiefly
Of the farmers, will reduce the surplus by
,ss,s6o, GOO, or about SEQ, ,0oo, 600, leaving
ahe rruhable surplus OF next year, should
no var or special expenses intervene, at
about the same fgura.
This IS in pursuance Of q policy that has
now become traditional in Great Britain,
and which wks recently pithily expressed by
Mr. Love, in the statement that the capital
represented By the national debt being
voz.h more to the taxpayers than to the
l,endholde1s, there IVES no profit in extinct
i1e it By TAXATION from those to whom it
vas worth from 6 to Is per cent, in order
to psy of the principal Of debt that WAS
running at 81 per cent. The ''funds,T IS
ther are called in England, furnish con-
ren'ent mode in which unemployed capital
may at all times be invested, while awaiting
more profitable employment elsewhere
Indeed we're the national debt paid of, it
would be hard to say what mode OF secu1i-
ties could be devised, which would afford
70 fast, easy md safe an Investment for
unemployed capital The payment
Of the debt would be to
the taxpayer coercive interposition in
Lis behalf to enrich him by taking from
him capital worth to him high rnte of
interest, n order to pay of debt running
at low rate OF interest For all taxes rest
uron production, and the producing classes
arc always the borrowing {indebted) classes
who arc in some form using more capital
than they own, whether it be IN the form OF
Nancy which they borrow, or buildings
which they rent OF corporations which
they manage, but whose stock is largely
owned By other persons. If all taxes were
cquitabiy laid, and noue were more mis-
chicvous, or expensire Of collection, than
my other, it might be Affirmed THAT the
payment Of a national debt Is always de-
siTable, because the capital is, on the
whole. more likely to be sarcd if
paid to the t,ondholaer than
If left in the pockets of the people The
people will save portion. but portion
only, while the public creditor vii, be Likely
10 save the whole, because it is to hin q
Source Of revenue, which he cannot gener-
ally afford to lose. But, inaRnuch as some
taxes are more burdeusome, costly, and
Oppressive than others, it is held by the best
authorities, Mr.. Mil among the rest, to be
wise economy to apply the entire surplus Of
revenue to reduction Of taxes, down to
he point whese the residue Of taxes are
aemonstrably equita ab1e and unobjectionable-
Ar. Mill agrees with Nj. Lowe that there
are still taxes lesied IN Great Britain (the
country where taxation has been brought
nearer 10 scientific accuracy than anywhere
else in the wor1d), which are moro oppres-
Five than that portion Of the public debt
which they might iquidate, and hence that
it is unwise at present to commence paying
rN the debt.
While to the producing classes, therefore,
ta1a,ion for the payment Of the principa
of debt Is generally loss, in an econouai
cal point OF view, to the non producing
class whose capital, unemployed By them
selves. is seeking employment by Others, il
is the removal Of convenient mode of in
yestment, the e1tinguishment of Raving,
bhnk. While the borrowing producer il
compelled 10 pay rate Of interest highe
than the debt bekrs, in order to hRye tn
use of the sl,ne amount of capital, tn
tuEd or bondholder is deprived of tn
mode Of investment which was most profit
able TO him, notwithstanding its low rate o
interest, because of its security and eas
conversion, whereby he was enabled t
get higher rate Of interest as often ns a
opportunity presented, without at any tim
being under the necessity of allowing b
capital 10 be wholly idle portion Of Il
time,
Impressed by long experience with the'
facts. it has become m axiom OF Britis
craftsmanship that il is moro profitable
'eave capital il the hnn2s Of the ta1-pa5e
Ian to take it from them. by c1istis
nudes Of taxation, and give it to the bon
ao1aers. This by no means implies that
national debt is national blessing, but on
TINT the debt being incurred, its contin
ance. as incurred, is less evil than the {
gree Of taxation necessary to effect its pa
rurnt. The Desert of Sahara IS not blet
ing. but it does not follow that It Woe
pay. economically, to incur the e1pen
necessary to remove it. So, in the keen .:
sagacious opinion ot men ike Pitt, Pc
Gladstone, and Lowe, On the one hand, b
Mill and McCul1och, on tho other natio1
delt Is only less evil than thh ta1nti
necessary to psy it.
Aeainst these opinions, the pres
American policy Is represented in
), English House of Commons by g Mr. smi
ncn,t,ez for Stockport, whoever he may
:. He favors the Boutwell, policy Of paying
debt at the rate of hundred millions
ycar. His opinions, however, in Euglal
where states1nanship IL 4 profession, are
accorded that popularity which happens
them in America, where al men are b
economists, and many, even in the high
positions, rely on sheir ante-nata1 kno
edge Of political economy in shaping
financial policy of the country.
But while VIC may, as nation, hss
from the economical theory Of Great Britt
that for every si1 millions Of national
We pay, thereby stepping one million Of
tereet, we stop two or three mlions OF !
doctiou,-still it becomea Us to defer 30
,othe, interests of producers as to n
he burden On them as Light IS possible
I. not to be supposed that American ]
ducts, whether agricultural, u,anufactur
mercantile or mining, esn compete with
foreign, if the foreign are, Ike an ashl
: stripped for the race, while our own
ike prisoner, weighed down
der a 1oai of chains and n,Anac1es.
most protective measure that can be ad
ed toward our industry is to take
600, ,ooo, 600 year OF taxes, and !
our surplus but ~, ,ooo, 600 year.
and This only, can cnsble American IN
tries OF auv kind to compete wi.h fir