The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-03-16


new powers extending dssly It's iudu0nce tato rev
regions within our own limits and into lsf distant
countries whore civilization Ia more aud more
influenced by commerce with as--ali these C0apCl
esadhal increase ot JUS aud proper CNpSHdltuic.
:,4ca sa increase does NOT indicate eXtravagSlce
hnI II indicates growth. health ana siIcaetl
Ihese - another cause OF nominal increase 81 ex-
pcuttutc, whicd operates slowly ANA slea..y, tut
~ auicy - Tue marca OF invention ana civiaaunn
Il IS IN the changing OF tae purchasSDle power OF
money. The dollar o. to-day may coA,ain - many
siaig, ol god rs ne dollar o. ySat ago, "a IS
rCRUnASArLe ron l.sS A.sE DIMINISHING
year ~ year a. iMc OF no. less than on per cent
per annuan. lhls - Causel b. tue increased p.O-
"a ciion OF INC precious inctais IN. dalnutioh OF
labor required TO produce theal aai the new iutcn-
.ions apfei 10 production, bur, more IMAM all ny
the new devices OF mOGern nnance, wnich substitutes
paper ANA credit IN ianuacranle forms the place
o god ana silver, so iaat these metals are not now.
CT her foreign or domestic but The mere standard or
gauge OF Naiut. Even paper money so Valieu, me
greeabAcA and bank hcte. are crowded tom their
o.d Use, Nad ne check, urait. acceptance ana uhi
are The ccls 0t exchanges great and smal, foreign
anu domestic. 10 an eNteat never before known.
with me actual increase o. eoa AMI silver.
slowly and surrey dcprcss thor nurchasah'e
power ANA make eicatGr sum necessary not
oal 90 bus marketing " pay 'aoog, but 10 conduct
government, tiit obvious tendency OF ulDilnu.
',cn IN The value o. money not ony Increases our
expenditures, bat increases 0gl revenue by the ID
mfHi"bes TIC Sr,ssn of debi ana espcc,sily of a
national deht running for long periou OF years. "
Is also chyIcus mat, as nearly onc-hau oi our eX'
pendiurc, ave on thc haI ar iaDer money, shsy
.
deurecia,ion, Of the PAPER money. Salaries have
bcea !ioih Time 10 iinlc Increased 10 cover
FOR The Srmv AMI naVv and OF az labor FOR the civil
service has been Increased IN the same way. As
Que payer m,..lcy art!pavhes 10 a apecie standard
cost ~ snrphes, but can
HARDLY HOPE FOR REDUCTIONS or SALARIES
agail. We mag Reasonably hope that expenditure
growing out OF the war viii diminish time pas
Ny colleague IN the iiousc General GarIelc( maze
an interesting ana accurate statement showing
That Cut VI, . tl-tlc urIlenUte eNucuIt.
lures for The asst Nscal yearSI7j SIS 40. or G)ta
per cent of he whole waa rad directly for the cx.
pcnscs growing OUT oil TIVE late wgr. the secretary
OF the treasury has estimated Tor probable dnn,
pw'on OF these expenses, hnt we mus! gcmemner
the vast mass OF
UNraQUJDATFn CLAWS
growing out OF the war which are now under cx.
aucstionapiy he allowed, and enter into our cN
peu,iIitures Tor some years come The great iuass
oil our eNpcndtlmes, probably over eighty percent
OF the whole, Is settled by avs practically, II not
Theoretically, beyond th" action OF Congress; the
pnnllc DEBT, the permanent appropriations, the
salaries of pubic officers, the pay OF tho army and
navy indian reatirs all these Rre, IN eject, beyond
the probability of diminution sh as | have
aircudy stated. there are reforms which, Ii adopted
hy Congress. would crable las to propose
greater reduction of taxes man Is prudent for US
now 10 do. assume, them upon the estimates Of
$2i3u25773 81 Will be required 10 NEE. the interest
oil The pubic debt The pension list and the other
proper expenditures Oi the government. 40 this
must hc ADDED such iurtncr sum "a ny wise pub
lie policy ought to be applied to tue reduction OF The
uaGcf the act OF February, 1862, and July Ia, $780,
as % sinking iuad Is not open 10 discussion. THIS
The aggregate debt or So so5,e3o and INC iperest
upon lne capital OF the -s sinking iund' which
s year ca S Ss ~ sS or an as
by year Is specDcay pledged TO The reducIion OF
the deOl. and ITS regular pay ment as mucn part
OF the publlc obligation rs the payment OF The III
terest OF the debt Whether greater sum shall oe
applied to
TIE REDUCTION OF THE DEBT
is purely Question Ot pubic DOilcv, There IL not
now the same motive Tor rapid eXtincl ION OF the
debt as formerly Since the close OF the war we were
paying interest at the rate OF $40 per cent We
could sell our SIX pc, cent bonds only ut large dis
count IN coin: we mad vast unquldated floating
debt winch II was clearly tue public policy 10 pay
OF rather than To swell the funded debt. Even our
liqudated deDl was largely in demand, or Oiher
precated as 10 adect the pubic credit IN all the
money markets OF the world. Since the close OF
commencement OF President Grant, aomlnistra.
ton the Improvement or our financial condition Is
uneNamped. We can borrow readily at i've per
cent and are now negotiating for Still lower rate
All our six per cent ponds, including the great
Of our Indebtedness, arc
ABOVE PAR IN GOLD,
and await our pleasure as TO the time OF payment.
Tue doatng debt Is all paid, except that which is
iiigaled and disputed. All our demand liabilities
are paid, except balance Of three per certlii-
Gales, wnicn are being gradually PAID Our cur
GOV Is strong enough 10 resume specie pay.
ments AZ any moment tue time being only ques-
creator, proIcer and Consumer. The Sonk ;iiiS
system Is 50 generally distributed that IG urnIles
uniform currency, ahd only awaits The mandate of
The government maintain 1t al par with gold
and silver. Our strength, our resources and our
fidelity " pubic engagements have been DEM
Olstrated. No unnatural strain upon our resources
Is now necessary to enable US 10 fulfil our public
engagements, 70 resume specie payments, or to
rapidly iund our debt at lower interest But we
nave traditional policy. uniformly maintained in
time OF peace, founded upon good reasons and sup.
Of our oSunry that provision ought to b. made
that VIII, not interrupted W war, pay on the pub
lie debt
WITHIN THE LIFE OF A SINGLE GENERATION.
or about thirty years. lnlS we can now easily DO
and yet at each Congress repeal aud reduce taxes.
$50 600 OCO including the sluklng fuud provided Oy
law, should be applied TO the reduction Of the debt
a ann ' Ia tis sSon nj ' ia s OF tG
revenue reduction.
In estimating the revenue for the next fiscal year,
especially from customs duties, We have several
elements OF uncertainty. Internal revenue, based
upon consumption and customs duties on such
with reasonable certainty But the results OF any rate
vi duty on the great body OF textile and metallic
treasury being Itself an evidence OF excessive I'M:
portatlon-which may cause within a single year
deficiency OF revenue. This can only be guessed ct
merchants sometimes wreck their fortunes by q
mistake lp this matter. A long period Of time
shows, as general result, AN annual
INCREASE OF REVENUE FROM THE SAME TAXES
OF about four per cent per annum THIS increase
nan with ~ sUccc VIA xuo 9nl
the effect OF the repeal anu reduction OF taxes
always been over-estmated. the decrease OF q tax
rarely produces q corresponding decrease Of the
revenue, in some cases causing an Increased I'm
Of the foreign fabric and falling Off In
me domestic fabric, In some cases causing an in.
creased consumption OF the article. Since the LIST
day OF July, 1867 to this tine, the re-
ceipls from customs have gradually ri:en as
tollows:-In the fiscal year 1885, $l6s. 464590
IN The fiscal year 1862 AGO. IN he fiscal year
an annual increase oil over So and vet dur
ing this period custom duties were repealed which
yielded SO, 100000 per annufn. 1t Is LOW apparent
mat the custom duties Tor the current year Will
largely exceed those OF last year, and there is no
apparent reason that this increase viii not continue
during the next fiscal year. The receipts from Gus.
toms from the hrst day OF July 1884, 10 the list OF
MARCEL, 1872, Q PERIOD OF eight months, are
sac 12l, 000 II they continue AT the same rate for
the re:naindey oil the fiscal year the aggregate re-
ceipts VIII be 9226,06l,510. Four months ago the
OF the Treasury estimated the receipts
from customs FOR the next year $2l2 COO, 900, but
IN III faIc.