The Daily state journal. [volume] (Alexandria, Va.) 1868-1874, 1871-04-17
Gpetima State Journat
REDUCTION OF TAXES.

Mr.. Hibbard's resolutions declaratory o.
the financial policy OF the House, call fol
q revenue tariff, aud very great reduc'
tion of taxation. They declare that thu
revenue from all sources should not ex
ceed $3.50, 900, 900, including $120, 100000
for interest, and 1926, 100000 for redemp.
ton or purchase of the principal Of Tho
debt. Deducting these items, there would
be left but $1O5, 900, 900 to defray the or
dinary expenses of the government. Thai
this sum would be found insufficient under
the most economical administration can
hardly be doubted. The cost of the gov
ernment during the administration inn
mediately preceding the war, was from
seventy-fye to eighty millions year.
Since that time good many things have
occurred to increase the necessary expenses
of the government.
To begin with, the currency is so far
deprecated that hundred millions will
go no further than seventy or eighty mill
lions would have done in 1860, in the pur-
chase of army clothing, rations and war
material in general, in the payment of
troops and employees, in the erection of
public buildings, in printing public dccu-
ments, etc.
And again, we require larger, as we'll
as more expensive, army and navy than
we did before the war, and SO we shall, so
long as we have Alaska and the Ku-Klux
to take care of.
Still again, the necessity for collecting
revenue from internal sources-whch
would still be necessity were no more
than $3.50, 900, 900 of revenue required
involves a pretty heavy outlay that the
Government did not have to meet 'before
the war.
Once more: The war increased the an
nual expense on account of pensions, to
the extent of not less than twenty-five
millions. This amount will fall off from
year to year, as pensioners die, but the
falling off on this account will be trifing
for several years to come, and pensions
will probably form no inconsiderable item
of national expenditure thirty years hence.
These items of expense entailed on the
country by the war and war measures,
may be reduced to figures as follows, at a
rough estimate
On account of currency depreeiation...S200 900 900
On account of increased army and navy. 80 600 600
On account of collecting internal revonue 100000
On account of 20 OOU,COO
600 90
If to this we add the interest account,
$12O,000, 900, and $25 100000 for annual
reduction of the principal of the debt, we
shall have an aggregate of 1926, 100000
additional to the cost of carrying on the
government in the years Immediately pre-
ceding the war. It will therefore be neces-
sary to raise at least three hundred and ten
millions of revenue, annually, instead of
two hundred and fifty, the amount set
down as sufficient in the Hbbard resolu-
lions.
During the last fiscal year, the revenue
amounted to about SAIL, 100000. The
reduction of taxes last summer will proba-
bly, be found to have reduced the receipts
'or the current year to $370,000,000 of |
which some 100000, ,00O-perhaps more
will 60 to reduce the debt, leaving
S310, 100000 to defray the expenses ofthe
government. 1t is pretty clear from this
hat the taxes may be reduced 45,0OO,-
700 more, and yet leave an annual sur
plus of $25, 100000 to pay off the debt;
md it is possible that by rigid economy
S60, 900, 900 of taxes might be taken off
Without unreasonably reducing the sur
,lus. R
This is the extreme limit of reduction to
which it would be safe to go at present.
70 take off $1e1, 1000, 900, as proposed by
he Hbbard resolution, would bring the
government out at the end of the first year
nth deficit of round hundred millions.
t is through fear of some such reckless
seal action as this that foreign capitalists
ght shy of our securities, which ought
0 be in greater demand and at better
rices than any other national securities in