New-York tribune., 1871-01-17
TdyFS AND PROSPERITY


VIA ". y Times controverts our suggestion
that tho chief cause of the "Hard Times
complained Of is the very large proportion OF
our people who are trying to live otherwise
than by Productive Industry. IL asserts 'hat the
present enormous disproportion OF noh-produc-
crs 10 producers "dates far back" which we
most emphaticaly deny. The tendency has
Cnerhaps) always been in that direction; It's
rrqyHs were never till recently so mountainous
and palpable. But, let The Times set forth It's
own view of the real evil and It's proper
remedy. Hear it
o,ro amount and forms Of taxation enter more directly
into the question. The cost OF labor, the aphty 10 com
peto with foreign producers the protaoleheSs OF capI
and the charges upon business-are all more OF less
Affected by the fiscal burdens that arc borne. fof ts
re son II f. desirable TO reduce much and as rapidly
a possibIe tha taxation imposed by the Genera Govern
nent The policy that oxacts large amounts ani'iy ~
excess OF the legitimate governmental requre'oh's
soeIy 10 nav of liabilities which have not matureu IN "a
sucial as t is unjust Money worth more to business
mon than the saving in interest which the premature re-
duction Of debt effects. The continued coliectioh Vi
heavy taxes, for no other purpose than inc Iorna-
tion OF q surplus to he used In fodeemlhB pohus
bearing six per cent. interest In gold Is, there-
fore unwise considered simply as business uansac-
ton Even more disastrous arc Customs uuues "meh
oucmentine tho cost OF raw materials. The coal TAX
opb.pce. tho expense OF many manufactures in the
Tosf tbe lumber tax enhances the cost OF bulld-
ing and so affects rents; too high d TAX on
iron enhances the outlay for every mile OF raii-
road built maintained; and taxes on articies ol
less magnitude which enter into productlon' retaro
the return of prosperity. Hudgcd taxation has done
almost as much as the Alabama to crush the shipbud-
ing interest and bas, moreover done very much towafu
imparing the competitive strength Of not few manu-
features Hence tho scandal which Congress brings
upon itself by its neglect Of matters suggested ny Mr.
B0utwelrs policy and by It's refusal TO continue inc
work u reducing the taxes"
Comments By the Tribune.
In 1861, our taxes were far higher than
at present; yet there were fewer failures and
less complaint of Hard Times A very sweep
ing reduction Of Federal Taxes has just taken
effect whereby the Revenue is expected to be
reduced Eighty Millions per annum, or about
twenty-five per CEN. By this reduction, nearly
half the duties on Imports and quite half the
Internal Taxes mot half in amount, but half
the number OF taxes) have been entirely swept
ont Of existence. And this abolition of duties
and internal taxes tends especially to stimu-
late those manufacturing industries" which
(The Times says) have suffered from the aug
mentation of the cost of their raw materials
by duties on Imports. 1t would certainly
seem, therefore, that this sweeping away alike
of duties and internal taxes ought to have
given a new spring to business at the opening
of 1871. Yet all know that such consequence
has not been realized.
There are many more imposts that we shall
be glad to see abolished whenever the Treas
uTy can spare them but the time has not yet
arrived. We paid off Gn round numbers) One
Hundred Millions of our National Debt in
1870; we have remitted Eighty Millions Of the
taxes paid in that year. This leaves but
Twenty Millions surplus over our probable ex-
ponditurcs; and this seems to US little enough
We pledged the public faith, when we began
to incur our great War Debt, that We wOnld
pay of not less than one per cent of the prin-
cipal per annum i and this will absorb our en-
tire prospective surplus. Let us see how the
years income and outgOes agree with the
! official estimates before We reduce the Rove
nue. further We arc erecting Post-Oflices III
this City and Boston which ought to be Wig
orously pushed in 1871, while tie Mississippi
Rapids at Keolsull, the Ohio at Louisville, and
the Lcvees Of the Mississippi, are asking fol
| large appropriations, Let us be sure that there
! is a surplus before we dispose of it.
Z