The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-04-29
The Management Of Our National Finances
ms nm Rlectioneering Issue.

/ ms m Electioneering Issue.
It is evident that General Grant and the
radical party expect to make great deal OF
political capital in the next elections and
Presidential contest out of the management
of the national finances. The orators and
newspapers of the party dwell particularly on
this theme, and the frequent circulars issued
by the Treasury Department are intended, no
doubt, for electioneering bulletins. The Sec
rotary of the Treasury has been the chief
engineer in this political maneuvre, and has
furnished the material for the financial
plank which the radicals intend to put
in their platform. He might have thought
| this would place him in q favorable
| position for the Presidential succession;
but as General Grant has cut off
all rivals in the party for the nomination in
1872 Mr.. Boutwell, must transfer whatever
credit he claims for financial wisdom to the
administration. Whether General Grant
knows anything about national finance or not
he is the big chief that must appropriate the
honor, if any honor there be, just as the Queen
of England or any other monarch is lauded for
the acts of the Cabinet. Congress- 1t is true,
has not followed entirely the policy or recon-
mendations Of the Secretary and Presidents
but whatever supposed good has been done by
one or the other must be credited to the
administration and the party, while to indi-
viduals or accidents must be attributed any
mistakes.
The principal topic which the administra-
ton orators and press dwell upon is the reduc-
ton Of the principal of the national debt and
saving Of interest thereon during the two
years General Grant has occupied the
Presidential chair. This, in fact, is the
main thing they rely upon for popu-
larity. True, they say something about
reducing taxation, but their claim for that,
when scrutinized, will not appear to have
much foundation. The reduction of the debt
to the amount of two hundred millions in two
years is something to boast of il accomplished
through the wisdom and good management of
| the government. Nor are we disposed to de-
| tract from whatever merit is due to the ad-
ministration. And here it is only fair to say
that we believe the revenue has been better
collected than during the former administra-
ton. Still it must not be forgotten that Mr..
johnson was the President of the republican
party, at least until he and the party quar-
relied with each other, and that the repub-
licans all along had unlimited power in Con-
gress over the offices and the politics of the
country. While we offer no apology for the
loss of revenue through the lax administration
OF Mr. johnson, we cannot ignore the fact
that great deal Of that loss was caused by
the distractions thrown in the way of his
government and the bitter hostility manifested
to it by radical Congress and the very party
that elected him. The whole evil sprung
from the radical party. The democrats had
neither power nor responsibility.
But to return to the claim of the admins
tration and its partisans that the national
finances have been managed wisely and for the
best interests Of the country since General
Grant came into power, let us see VIII ether this
is well founded or not. Well, then, of the
two hundred millions and more of the debt
paid little over the interest on one hundred
millions has ceased. About three-nnths of
the sum should be credited to the sinking
fund, where the interest is increased from sim
pie to compound, and about one-ninth goes to
pay premium on bonds purchased. Though
the people hereafter will feel the benefit, we
of the present day only get the benefit of the
liquidation of that portion of the debt on
which interest ceases. Then, where does this
money come from to enable the Treasury De-
partment to pay a hundred millions year Of
the debt? Mr.. Boutwell, is not magician He
cannot call this vast sum from the bowels of
the earth. 1t comes from the pockets of an
over-burdened people. 1t is wrung unneces-
sarily from the industry of the country. The
present generation, which has borne the Attic
tons weight and an enormous expenditure in
the most exhausting war of modern times, Is
called upon to bear continued and unnecessary
burdens simply to enable the Secretary of the
Treasury, the President and party in power to
boast Of paying large amount Of debt. To
come down to the naked truth, that is why the
people have been taxed about four hundred
millions year when three hundred millions
or less would have been sufficient to cover the
current expenses of government, the interest
on the debt and an ample surplus for the sink
ing fund or liquidation of the debt. In fact,
the revenue of the government ought not to
exceed hundred and fifty or hundred and
sixty millions.
There are, however, other reasons why Mr..
Boutwell, and the party in power wish to keep
up an enormous income. They are, for the
most part, protectonists of the Massachusetts
school, and by maintaining vast revenue they
afford protection to the manufacturers Under
the plea Of necessity for revenue they are
enabled to tax foreign articles of general co.,
sumption, which raises the price of home