New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1872-07-28
apetr Orleans 8rpubtitatl.
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OFFICIAL JOURNAL Of THE UNITED STATES
OFFICIAL JOURNAL Of NEW ORLEANS
Expenses Of the National EoVeFnment'


exceeded the expenditures; and ,. The
taxes have been more productive since 1905
than they were previous to that year. his
condition Of things is certainly very graft
fying. yet Mr.. Boutwell, and the partlsans
OF the administration generally boldly adj
vance a third claim-that the government
has been more economically conducted by
Cougress and General Grant than by their
predecessors. In support Of this claim Mr..
Dawes lately made speech, in which was
embodied a statement purpOrtlng TO show
that the government expenses were twelve
per cent less per capita III 1871 than IN
1860 after deducting the expenses neces-
sarily growing out Of the war This state
nenf Mr. Boutwell, approves in his North
Carolina speech though IT'S falsity, blum
ders and perversiOns have already been
fully exposed in the Tribune and other
journals. Mr.. Boutwell, gives us the intOr-
nation that the statement was prepared by
Mr.. COnant, head of the warrant division OF
the Treasury Department. II so, we snail
hone TO see a man Of more honor and capac-
fty at the head of that division before
twelve months more elapse.
It should be considered no venial Otiense
on the pant Of government officials to at
tempt to deceive and mislead the people III
regard To the use which has been made OF
public money. Mr.. Boutwell, himself, as We
shall show, is guilty Of exaggerated miscon-
duct of this kind. He seeks to convey the
impression that the present administration
has effected retrenchment Of 500 ,OOO,OOO
IN the public expenditures since 1865, where
as the simple truth is that no retrenchment
whatever has been effected, but almost
every branch of the public service, the army
and navy alone excepted, is conducted at
increased cost. Mr.. Boutwell, states the
expenditures for the fiscal year ended June
80. 1872, at 9277, 0OO, 900. As the finance re-
IL IL NJ mn Ia
tished until next winter, we can not be eX-
pected to deal with those small particulars
which Mr.. Boutwell, sees tit to retail in ad-
vance Of their presentation to Congress;
but we do propose to say few words IN
regard to the sum Of S292, III ,l8S, which
Mr.. Boutwell, gives as the aggregate expen-
ditures for the fiscal year 1871.
Ii is not true that the aggregate eXpt ndi-
lures fJr the year 1871 were only S292,UOO,-
600 1t is true that the Secretary Of the
Treasury, by petty bit of sleight Of hand,
attempts to cut down the expenditures OF
tho military establishments from SI4, 100000
to S3j, 800, 900 by deducting the proceeds Of
sales of arms to the French during the
ErancO-Prussian war. The effect of this IS
TO reduce nOminally both the receipts and
expenditures of the government by SS,3OU,-
600 Ii the year 1871 stood alone, this
would not be specially Objectionable, but it
is manitestly unfair to compare accounts
thus doctored with others which have not
been subjected to such processes. We pre-
sumo, although France and Germany were
then at peace, that arms and stores were
sold in 1868 and the other years. Mr.. Bout
well, however, was the first To make them
doubly profitable by the process Of cancella-
ton, by which the income Of the govern
ment is cut down, the expenditures
reduced, and a deceitfUl semblance
of economy presented without any
actual decrease Of expenditures. We
said the other day, and we repeat
il here, the finance reports are disgrace to
the nation The scurvY little trick with tie
army expenditures is not the only one of
the kind Of which we discover traces in the
Secret y's report Tor 1871. Previous to 1871
we have generally been able to discover the
cost OF the Patent Office. In 1871 this item
of public expenditure, amounting usually
70 between $500, 900 TO Sl,OOOOOO per an
mum, disappears. In the utter absence OF
information, We are unable to do more than
conjecture what disposition has been made
of 1t, but 'nasmuch as there seems to be no
item covering the Patent Office ia the table
of expenditures, we suppose the cost OF that
establishment has been cancelled by the
process Of deducting the fees and other re-
Ceipts from the expenditures, and transfer
ring the remainder to some account of
% snndries." The following is a brief com
,
and 1871, taken from the official reports:
Total expenditures ..... : 81 ,3402a5 $500 23l
Interest aad premiums. l47,425,l97 lj+59j,3bO
Remainder ............ 422g gI5 O38 : 1865 86392l
Army Npguaitury l23,Abb49 4iUoOIO85
Remainder ............ sIO6, 500 l39 BI2i 1886
For the year 1865 the second item in
cludes $40 l2I,0l6 interest on the public
debt, and S70Ol, lJl premium on treasury
notes redeemed. For the year 1871 the
same igem embraces $l2j, 81 Is ,5O6 interest on
the debt, and $9,0l6,6Jj premium on bonds
purchased and Cancelled. The army eXpen-
ditures for 1868 include large Sums paid in
bountieS, the disbursements Of the pay de-
partmeut alone being over $75,0O0,OO If
we further deduct naval expenses, pensions
and dra w0acks, the remaining expenditures
required sjl ,6SS, jO2 IN 1868, and $53, l3l 379
in 1871 From 1868 TO 1871 the eXpGndi-
lures of the government, after deductng
the army and navy, pensions and interest
on the public debt, and excluding the tech
nical charges of "debentures on draw
backs under the revenue laws, duties re-
funded Which had been illegally collected,
and one or two other similar nominal out
goes. increased from S3LOlj 1913 Sc to SG3,-
l39 379 "a. This simple anal sis the treas
Ury writers call taking out Of the financial
aCcodut" eyery feature in which economy
has been actually achieved That is eX-
actly our view of it.
Interest on the public debt is not an item
with which economy has any concern
That interest, be it more OF less, has TO be
paid by every administration. 1t can not
be increased or diminished by act OF Con-
gress. Ii is not a feature in which
economy has been achieved or can be
achieved. II is not even the measure Of
economy. In connection with this reduC-
~. A.ks Il. J. B., E.
takes To itself n vast amount OF credit
which il doesn't deserve, and this we pro
pose some day TO show. There remain Of
those features in which economy has been
actually achieved the army and navy.
President Grant is to have great credit be
cause the army and navy costs less when
we are al peace than when we are at war
l. Il by President Grant, then, and not by
peace. that we have been enabled to save
this money In 1860 our army expenses
were Sl6,OOI ,l67; in 1871 they were
S4I,0S0. 0S5. In 1860 our navy expenses
were SIl,5l3, $50. including so, 723 Tor the
construction of new vessels; in 1871 they
were SIG, 49, .021, including nothing for new
vessels The actual economy does not
appear to be very great.
We viii expose one more trick by means
of Which the expenditures of government
are made to bear the appearance of re-
treulhment. though the substance Is utterly
wanting. The treasury receives each year
in premiums on sales Of gold some eight or
ten millions Of dollars, and pays out about
the same on its purchases of bonds. Now,
for the wear 1872, owing t. the large
amounts Of called" bonds paid OF in gold,
and the very limited amounts purchased
for currency, probably not over Si,O0OOOO
has been paid in premiums on purchases OF
bonds for currency. Here, apparently, Is
another great stroke Of economy-S5, OOo goo
,.-r.l l., raaIitv however every bond of