Wyandot County Republican. [volume] (Upper Sandusky, Ohio) 1869-1903, 1872-03-28
The National Finances.

WE make the following extracts from
recent speech on the Tariff bill, delivered
in the United States Senate by Hon.
John Sherman, of Ohio, Chairman of the
Finance Committee:
In opening the debate on this bill it will be
perhaps most agreeable to the Senate that
state the facts as to our financial condition,
that enable US now, for the sixth time since
the close of the war, to reduce the taxes i'm
posed on the people of the United States, and
/ will also state the general principles upon
which the reduction of taxes proposed are
based. The details as to specific taxes would
extend my remarks far beyond my purpose,
and will be more properly stated from time
to time as the debate progresses. The taxes
already repealed yielded S233, ,O00, 900. Our
revenues still largely exceed our expendi-
lures, and we are justified by several causes
in continuing to repeal taxes. The taxes
that remain yield largely, more than twice
the excess in former years, and more
than was estimated by the most sanguine
person.
The production of the country has largely
increased; industry in almost every depart
ment has been actively and busily employed.
The consumption of our people, which under
every system of taxation is chiefly the basis
of taxation, has, by the prosperity Of our in
dustry, been enlarged and increased. AT the
same time the national expenditures are
diminishing, and our financial condition is
improving in every particular. We are slow
ly, but surely, without contraction or expan-
sion, by increasing the uses of our paper
money, approaching specie standard. The
interest of our debt is daily diminishing by
the payment Of the public debt, and the re-
duction Of the rate of interest on that which
remains. All these favorable circumstances
enable US to approach further reduction of
taxes with more system and information,
and, trust, with sincere desire to make
the reduction in such way as to yield the
largest possible relief to our people. The
pn1v nnpstiOnS how mnch and what
taxes ought to be repealed.
Since the close of the war it was the high
est public policy to maintain our revenue
| largely in excess of our expenditures, for
| large surplus of revenue was not only useful
| to pay the unliquidated debt, but was of
| great Importance in re-establishing our pub
| lie credit in improving our currency and in
reducing the rate of interest. But the time
| has now arrived when we can safely reduce
our revenues to barely enough to pay the ex
penses of the Government, economically ad
ministered, the interest of the public debt,
and such additional as it may seem to be
| good policy to apply on the principal.
| The expenditures for the fiscal year ending
June so, 1871, were about $29S, ,067, 757-
| As; for the current fiscal year, partly es-
timated, S273 A03, ,3S2. For the next fiscal
| year it is estimated at S273, ,O25, ,773. These
sums exclude the sinking fund and all pay
ments on the principal of the debt. The net
receipts of the Government during the last
|
1928, ,944; for the current fiscal year estimated
| at 1853, 600, 900. The actual surplus revenue
| for the year ending June so, 1871, was S91,-
| LAG, ,776; for the current fiscal year, partly es-
| timated, 81, ,794 ,991; for the next fiscal year,
| estimated, SS5, ,914, ,226. The question arises,
how far the estimates of expenditure will be
| increased by additional appropriations by
Congress. 1t is not probable that any mate
rial change will be made in the aggregate
| appropriations for the current fiscal year,
| w rAnairNts alarO in
cess of the estimates. This is caused, to
| some extent, by the importation of goods, in
place of the duty placed on goods destroyed
| by the fire at Chicago. The estimate of the
Secretary of the Treasury contemplates a re-
| duction of the expenditures for the next
fiscal year, as compared with this year, of
| over $50, 600 900, or, as compared with last
year, over SIS, 900, but this is explained
mainly by the exclusion from the estimates
| of premium paid on bonds and premium
received on gold, which balance each other.
The estimates are based upon appropriations
required by existing laws. They can be, and
ought to be, diminished in several important
| branches of public service.
| The abolition of the franking privilege,
the reduction of the public printing, the re-
duction of the internal revenue service, a
close scrutiny of the pension list, careful
limitation of appropriations for public build
ings, and general cutting off of expendi-
lures that grew out of the war but have sur
vived the war, would enable us to repeal
ether taxes without injury to the public ser
vice. On the other hand, the wants of a
great and growing country like ours, exer-
cising new powers, extending daily its influ-
ence into new regions within our own limits
and into far distant countries where civiliza-
ton is more and more Influenced by COM
merce with us-all these compel gradual
increase of Just and proper expenditure.
Such an increase does not indicate extrava-
gance, but it indicates growth, health and
strength.
There is another cause of nominal increase
of expenditure which operates slowly and 81
lently, but as surely as the march of inven-
ton and civilization. 1t is in the changing
of the purchasable power of money. At the
close Of the war we were paying interest at
the rate of $40 per cent. Now we can
readily borrow at five per cent, and are now
negotiating for a still lower rate. Our cur
rency approXimates to specie standard
and the Government is strong enough to re
sumo specie payment at any moment, the
time being only a question of domestic poll
cy, as it affects the debtor and creditor, pro
ducer and consumer.
The banking system is so generally dis
tributed that it furnishes a uniform curren
cy, and only awaits the mandate of the Gov
ernment to maintain it at par with gold and
silver. We can easily pay off the national
debt in thirty years, and yet at each Con
gress repeal and reduce the the taxes. The
Committee on Finances conclude that fifty
: millions, including the sinking fund, pro-