Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1872-04-05
The National Finances.


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already repealed yielded 1898, 100000. 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 III 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 otr paper
money, approaching a specie standard. The
interest of our debt is daily diminishing by
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
only questions are, how much 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taxes ought to be repealed.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 a
large surplus of revenue was not only useful
to pay the unliquidated debt, but was of
great Importance in re-establshng 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
minstered, 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 80, 1871, were about S29S, ,067, ,757
As; for the current fiscal year, partly es-
timated, 1918, ,403, ,3S2 For the next fiscal
year it is estimated at $273, 025, ,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
fiscal year ending June 80, 1871, were $685.
1923, ,944; for the current fiscal year estimated
at 1859, 100000. The actual surplus revenue
for the year ending June 80, 1871, was S91,-
146,716; for the current fiscal year, partly es
timated, $71 ,794, ,991; for the next fiscal year,
estimated S$S5, ,974, ,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,
while our current receipts are largely in eX-
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 re-
duction of the expenditures for the next
fiscal year, as compared with this year, of
over $50, 100000, or, as compared with last
year. over $4,000 900, 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,
close scrutiny of the pension list, careful
limitation of appropriations for public build
ings, and a general cutting off of eXpendi-
lures that grew out of the war but have sur
vived the war, would enable us to repeal
other 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 inhu-
ence into new regions within our own limits
and into far distant countries where ciyiliza-
tion is more and more Influenced by COM
merce with us-all these compel a 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 si-
lently, but as surely as the march of inven-
tion 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 Z $40 per cent. Now. we can
readily borrow at five per cent, and are now
negotiating for 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 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 1t at par with gold and
silver We can easily pay Off the national
debt in drty years, and yet at each Con-
gress rel cal and reduce the the taxes. The
Committee on Finances conclude that fifty
millions, including the sinking fund, pro-
tion of the debt, and that this sum added to
1913, 3,025, 773, or the sum Of 1923, OBS, ,773,
should be the basis of our revenue reduc.
ton. The customs revenue since 1867 show
an annual increase of over ten millions of dol
lars, and yet, during that period, duties were
repealed which yielded twenty millions per
annum. 1T is apparent the customs duties
| for the current year will largely exceed last
| year, and there is no apparent reason that
the increase will not continue during the
next fiscal year. The receipts of customs
from the 1st of July, 1871, to the 1st OF
March, 1872, are SAG, ,721 600. AT the same
| rate the receipts for the fiscal year aggre-
| gate 1926 ,061 500, or fourteen millions in ex
cess of the estimate of the Secretary of the
| Treasury. The internal revenue for the next
| fiscal year is estimated at l9,500,000, viz.
Spirits, $50, 900; tobacco, $50, 900, 900; fer
mented liquors, SS,5OoO 600; banks and bank
| ers, S5,0O0,000; gas, $3,20O,000; adhesive
stamps, SIC, 1000; penalties, $500, 900; other
articles, $500, 900. This don't include the re,
siduum of the income tax for 1870, which
will make good the Secrstary's estimate OF
S126, 900, The proceeds of the sale OF
public lands, etc, are estimated at S2l 600,
900; makinga total of 1878, 100000, or S14,
100000 in excess of the Secretary of the
| Treasury's estimate, and one hundred mill
| ions in excess Of the estimated expenditure
Applying fifty millions to the reduction oil
the public debt, there is still a surplus OF
| HlIy MILLIONS WHICH suOulu De lne extent Ol
| our revenue reduction at this session. The
fear that high duties would lessen our for
eign commerce is met by its steady growth
The imports in 1869 were S4l4, $50, 243 In
1870, S452, ,s75, ,665; in 1871, S5ls,T59,51S. The
exports in 1869 were S413,961 ,1l5; in 1870
$3.50, ,092 l73 in 1871 ,S562 sis, ,651 The increase
of internal commerce is much greater thar
the foreign, and 1t is now estimated at foul
thousand million dollars.
The falling OIL in our merchant marine or
the ocean is caused by the substitution Of
iron for wooden vessels, and for internal
commerce railroads are rapidly taking
the place of water navigation. If foreign
built vessels were admitted to American
registry both for internal and external com
merce at a reasonable rate of duty, this
would not only encourage the building o
American iron ships, but would secure
healthy competition in our internal and coast
ing trade now absolutely protected by on
navigation laws.
In making reduction OF the revenue i