The States and Union. [volume] (Ashland, Ohio) 1868-1872, 1871-08-02

tAAAN 1NSf
Cooke when acting as agent of the
Federal Government fer the sale of
its bonds. There are but two methods
by which the expenditures of a gov
eminent can be maintained. Taxa
ton, without debt or borrowing first,
with a heavy debt and oppressive tax
es afterwards. The latter plan was
adopted. Was it necessary After
the facts you shall answer for your.
selves. l hold in my hand the last
report of the Register Of the United
States Treasury. On page 276 it APP
pears that on July l, 1861, four
months after Mr.. Lincoln became
President, the entire outstanding debt
of the United States was 500, 1857 1928
with a balance in the
Treasury of OPP 275)s3O, 963, 1857
Leaving the actual debt s59, 300, 971
The debt could have been paid du-
ring n fiscal year without being felt.
The question was how should revenue
be raised to carry on the war? BY
taxation during the war, and low tax
es and 10 debt after the war was over?
or by borrowing, and low taxes the
first year of the war, and heavy taxes
to be made perpetual, and a fearful
debt also intended to be made perpet-
ual after peace was restored? The
latter plan was adopted. Was it nee
essary? 1t was not only unnecessary
but the debt was Intentionally created
for the express purpose of building up
a moneyed o~ligarchy, and it has been
done.
HI PROOF.
Had taxation been equal to the ex-
penditures of the Government during
the war, at its close there would have
been no debt, and to-day Federal tax
alton would not reach $50, 600, 900,
where now it is over S4O0 100000.
This policy would have prevented an
initiation OF prices, and reduced one
half the cost of the war. When green
backs fell to be worth only fifty cents
on the dollar, it required two dollars
in greenbacks to buy one dollars
worth of supplies, and thus the cost of
the war was doubled. The expendi-
lures of the first year of the war were
$457, 900, 00O. Had $500, 000, 900 in
greenbacks been issued as became nee
essary to make purchases, and made
receivable for custom dues as well as
for the payment of other taxes, they
would have maintained the par value
of gold, and been paid into the treasu-
ry for taxes during the next year
But could five hundred millions Of
taxes have been collected in one year !?
The answer is easy. More than six
hundred and nineteen millions we're
collected during the first year of peace
Notwithstanding the four years of war;
and The voluntary contributions of the
people during the war nearly equaled
the amount paid in taxes. Hence it
is clear that the expenditures of. the
wal could have been paid while the
wal continued, and at its close we
would have returned to low taxes, and
been free from debt.
But my kind friends, that is Just
exactly what the oligarchs did not
want, A great debt was their special
object, and that could only be obtained
by low taxes during the war, and high
taxes forever afterward. Let me in
vite your careful attention to the fol-
lowing official figures which l read
from the last Register of the Treasu-
ry. During the first year of the war,
Federal taxes amounted to only
$751; 07. 944
The second year S74,44S,157
The third year 1892, T42,354
The last year of the war 323, 002, iS5
The first year of peace 619;646, 64s
Borrowing and initiation were hand
in hand during the war, and at its
close we had an unliquidated debt of
more than six hundred millions of
Federal taxation. 1t is true that ow-
ing to the sleepless fight made by the
Democrats in Congress, the debt has
been reduced to a little over twenty
three hundred millions, and the Fed,
eral taxes to a little over four hun
dred and eleven millions. But had
the Government been wisely and hon
estly administered, the debt would
have been reduced three hundred mil
lions more, and the people been re
lieved OF a corresponding amount Of
taxation.
DEFALCATIGNS.
My friends, the administration has
made many efforts to divert public at
tention from the defalcations of its
officers, turning attention to the alleged
misconduct of the people of the South.
The Secretary of the Treasury con-
cealed from Congress and the people,
the fact that balances amounting to
many millions stood charged against
Collectors of Internal Revenue, who
had been removed from Office. The
House of Representatives alarmed at
concealment called for the facts on
the 21st day of March, 1870, and Elk
ecutive Document 267, Second Ses-l
sion. Forty first Congress, which l
hold in my hand was the result
During the canvass Of last year l call.
ed attention to this matter and de-
nounced the attempt to convey any
de~falcation as a grave ofiense against
the people. To avoid this odium Mr..
Senator Sherman and other distin-
guished persons leagued in the de-
knows exist, declared that the default
ing collectors were Democrats who
had been appointed by President
johnson. This fimsy defense was a
confession of guilt. What greater
a~bsurdity could be uttered than to say
that a Republican Secretary of the
Treasury concealed ~defalcations be
cause the defaulters were Democrats
and that for the same reason the de-
faulters we're not sued on their bonds?
Bear in mind that President Lin
~. L. loa- laol fIon civ
years; yet this report shows that nine