New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1871-04-27
TIE NATIONAL FINANCES.

Inc nakcu 1aCJ IUiJ OuI NdlloHdi bcDI h"o
reduced by so large an amount as S2O4,754,-
Alb during the first two years of Gen. Grants
Presidency, or from March I, 1869, to March
/, 1871 reducing the annual interest on that
debt by ST., 537 ,461, annOys and troubles our
political adversaries. AS with the Union VIC
tories at Gettysburg Vicksburg, and Atlanta,
they would fain befog or belittle it. Accord
ingly, The Herald tries its hand on what it
calls "Boutwelps Budget with the following
results:
l. 1t disputes the claim that taxes have been
reduced, quoting with an air of triumph the
gross receipts of the fiscal years ending with
June, 1860 and 1870, respectively; making
the former s37O943,747 and the latter $411,-
1854 and saying:
"Instead Of reduction OF taxation, We find that,
during the year ending the 30h Of June last there was
extoted from tho people in the shape of taxes over
sOOOOOO than during the year pregious IN fact
the exact increase sIO,3l1,7So i2-yery nearly
s., 900 900 per week"
Now, one claim made on our part is that
the Revenues have been more faithfully col
lected under Grant and Boutwell, than they
were under johnson and McCGlloch; and this
The Herald virtually admits. 1t does not pre-
tend that these Forty Millions increase result
from higher taxes, as all know that such is
not the case. They were gained by filling the
places of many of Johnson's servitOrs with
better men and more faithful. more vigilant
officers, and by refusing TO pardon by whole
sale the swindling distillers and rectiiiers as
johnson did-often before trial. And this adj
mitted elasticity and expansion of the Revenue
seems to us O striking commentary on the
Democratic and Protectionist assertions
= ehn1 tfo IN,
dustry crushed by inordinate taxation.
The Herald, dissatisfied with the above effort,
proceeds to buck against the fact that we have
paid off over Two Hundred Millions of Debt
in two years, as follows:
"Now in fact there is scarcely truth enough in the
whole bulletin for foundation. Where 1t is not wholly
false the distorted almost past recognition.
The whole thing is fraud upon the taxpayers.
"The real truth is that up to the 9Th ns or during
the first two years and month OF his Administration,
President Grant has through his Secretary OF the Treas
ury extOrted from the taxpayers, unnecessarily, over
and above the requirements OF the Government the sum
Of which has been expended in Efforts to pay
off our National Debt before 1t became due, but which
has been so badly managed that only about half that
amount Of the Debt has really been paid.
"Up to the present time, only s25,GGOo OF our Ma
tona Debt has actually been paid and our annual inter-
est burden has been decreased exactly 6jG-no more
and less The money has been e1penueu Ny cecetafy
Boutwell, as follows:
Premium on bonds bought. .t23,52SNs
Bonds bought for Sinking Fund.......... 6s,793150
Bonds paid Special Fund.-. ......l2S'c2'en
Money expended. ..-..s2l7,S4s,ess
"only the amount the Special Fund can be regarded
as the paid up portion OF tho National Debt The bonds
purchased for the Special Fund at once destroyed
the interest stopped and the amount OF the principal
properly deducted from the public debt.
EVERY dollar on the other hand, that Ia turned into
the Sinking Fund largely increases our burden OF taxa
ton II adds to interest burden the difference be-
tween simple and compound interest and practically
doubles the principal.
"Durng the past two years. there has been paid from
the National Treasury the OF @,e4s760 Interest on
the Sinking Fund. In short have been paying some
thing over 100000 per year compound interest on the
paid up portion Of our National Debt the Treasury cleo
pioneering bulletins all the while informing M that the
interest the very instant the bonds were paid
Comments By The Tribune
The Herald parades the premium lpaid1 on
"bonds bought by the Treasury, but sup
presses the still larger amount OF premium
I" [receivedY6n gold sold" for currency where
with to buy those bonds In open market;
selling the gold to whomsoever would give
most for il and buying the bonds OF whomso-
ever would sell them cheapest. The bonds
are payable when due in gold; by buying
them up in advance Of that time, the country
saves not only tho interest for tho intervening
period, but the difference between tho pre-
MUM received on the gold and the premium
paid on the bonds. which IL always some