The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-10-24
OR Nstisaai Fipances-Wast Of IN Able
and Comprehensive Policy.

Ine nn8nctal cOnutIiOn Oh INC country 10 DO
remarkable as 1t is anomalous. 1t puzzles the
Wall street spectators, confouuds the Secre-
tary of the Treasury, and excites the admira-
ton Of foreigners. One great calamity after
another follows in quick succession, such as
the stupeudous frauds in this city, the destruc-
tive fire in Chicago, threatening to swamp the
insurance companies and to create general
financial disturbance, and the disastrous con-
| fagrations generally in the West, with other
| things calculated under ordinary circum-
stances to create something like revulson;
| yet the market soon RECEIVERS from the first
shock. Values begin to go up again,
gold goes down after spasmodic rise,
credit Is restored, notwithstanding some
failures and the suspension of some OF the
strongest insurance companies, and there is
general feeling of confidence and hopefulness.
All this is due-lrst, no doubt, to the wonder
full resources of the country, its great and
varied productions, its prospects in the future
and the unparalleled industry of the people
and, next, to the influence of the telegraph and
steam power in facilitating intelligence and
communication with all parts Of the country
| and the world. These new agencies of civili-
cation carry means Of relief instantly from one
commercial or financial centre to another in
times of trouble and thus tend to equalize
burdens and values. The accumulation Of
capital or specie at one point Is drawn upon
at once to supply the pressing necessity of
another, aud soon that equilibrium which is
needful alike for the whole of the commercial
world becomes restored. Exchange goes up
or down according to the circumstances, but
Is always tending TO a lower rate and the
equalization of values. The time Is not far
of, probably, when no great commercial or
productive nation will suffer the terrible
financial crises it formerly did, and when
the difference of exchange will be small The
telegraph and steam power bring the various
communities of the civilized world into close
relations and make their interests in great
measure Identical.
There Is no nation In q more favorable posi-
ton to profit by this progress of the age than
the United States. The productions of the
soil are immense, never failing, varied in
character as the soil and climate are, abso-
solutely necessary to the rest of the world,
and other commercial nations find here their
best market. We furnish the most abundant
supply Of necessary raw materials and pur-
chase most largely of the manufactures and
Injuries of the Old World. While England
may have more accumulated capital and
lives mostly on the profits Of that,
we are aggregating to a far greater
extent that real wealth which consists in i'm
| provements, in the cultivation of the soil, in
the rapid growth Of Cities towns and villages,
| in the building of railroads, and in all the
elements of real and substantial wealth.
Even the capital which we draw from Eng
land, and which for time may increase our
Indebtedness abroad, adds greatly to the stock
of our national wealth. True, interest is
high and will remain so for some time,
and the drain Of specie is large to pay the
burden of our Indebtedness; but this state OF
things cannot continue forever. The natl nal
wealth increases with population and material
progress beyond that of any other country,
and in time must not only make us compare
lively independent, but give as e Go4tEpltlieasHF
| of the world.
And here, in view Of these facts and this
prospect, the federal government is acting un-
wisely in burdening the people with unneces-
sary taxation to pay off the debt. The wealth
of the nation will be doubled, probably, in the
course Of fifteen years, and in a quarter Of
century the present population Of near forty
millions will be augmented to eighty millions.
Lob X,;I IL holf
some to the next generation as to this, and
there will be double the resources or more
with which to pay 1t of. Why, then,
should we who have borne the brunt
and cost of terrible civil war,
be taxed SO heavily to pay the debit Look
at the enormous sums raised directly from the
people during the last ten years for the cur
rent expenses Of the war, for paying vast
amount Of floating Indebtedness incurred by
it, and for lquidatiug several hundred mil
lions of the principal of the debt. They are
almost incredible, and would have swamped
most other nations. The credit Of the repub-
lie has been fully established. The payment
of hundreds Of millions year Of the debt
/, could do nothing more to satisfy our creditors
and the world Of our ability and determination
to pay. Besides, the debt will prove useful
for investment to public institutions and the
aggregated capital of the country, which needs
some such means Of deposit. 1t could be
vast national safety fund. Every succeeding
year, as capital accumulates, the debt would
be found more and more useful for this pur-
pose.
Under no circumstances is there any neces-
sity 10 keep up taxation to pay off the debt
as the government is now paying it. 1t is
unjust to the people of the present
time to do SO. II cripples industry