The New York herald., 1873-12-18
and Demands OF the Treasury De-
partment. .sss To-, s.~o

The Expenditures OF tho Government
and Demands OF the Treasury De-
partment. e.sc'-- ~--o
The Secretary Of the Treasury has asked
Congress for an increase of taxation to the
amount Of $4,000, 900. His estimate Of
the revenue from all sources for the 4scal
year ending June 80, 1874, after making due
allowance for the financial distress and
exceptional condition Of the country, was
S271, ,304, 310-that is, he had actually received
during the first quarter, from June 80 to Sep
tember 80, $S4, ,204 $40, of which sum
81, $780, S18 was from the premium on sale Of
gold. For the three quarters, from Sep
estimates the receipts at $1S7, 100000.
In this there IS no estimate of any
thing from the sale of gold, and we sup
pose the Secretary does not expect to
sell any or to have any for sale. 1t will be
seen that the estimated revenue for each of
the remaining quarters of the fiscal year only
amounts to fraction over s62, 333 900, which
is less by nearly $22, 100000 quarter than
the receipts for the first quarter. Will there
be such an extraordinary falling off in the
revenue even under the industrial and fnan-
cial difficulties Of the times? Or has the
to keep the Treasury full, greatly underesti-
mated the receipts. In the receipts for the
first quarter we have not reckoned the
SIS, 500, 900 Geneva award that went into the
Treasury, nor have we taken any account of
the money lying in the Treasury. The
$S4, 204, 80 were from ordinary sources Of
revenue and premium on the sale of gold.
The estimated expenditures for the fiscal
year ending June 80, 1874, amount to
$3.50, ,57S. There would be accordingly
deficiency of s1S,O44 26S. But the Secre-
tary makes it in his report S13, $50, 600. The
difference may be accounted for from the
premium on purchased bonds or other sources
not expressed in detail. But whether the
deficiency will be s1S, ,044, 26S or S13, $50 900,
if Mr.. Richardson's estimated receipts be not
too low, the difficulty has to be met. Still we
do not see why 40,OO0, 900 additional taxa
tion should be demanded. All the expendi-
lures have been estimated, including the sink
LIB iuLu io1 tnC puDilC uCUl uuu lultTeSI Oh
the Pacific Railroad bonds.
The balance in the Treasury June 80, 1873,
exclusive Of the SIS, ,5OO,OOO Geneva award,
which is placed to investment account, was
S115, 692, 028. The net redemption Of the
public debt for the quarter ending Septem-
Der 80 is set down at S32, $685. 82S. This left
balance in the Treasury on September 80
of 500, 1888, 985. How is it, then, that with
this balance in the Treasury SO late as the
end of September the Secretary has been
compelled to draw eighteen millions from the
legal tender reserve and that nine millions
have been added to the public debt during the
last month? The Secretary has been preserv-
ing his gold to meet the interest on the debt
and to take up the due bonds of 1853 and
called bonds of 1862, and, consequently the
small balance Of currency which he had held
was exhausted. The redemption of the bonds
that have fallen due and have been called in
is depicting the Treasury of the balance
it held In fact it has been estimated that
when these are redeemed and the interest on
the debt paid, at the beginning Of next month,
not only will all the coin be gone, but that
there will be deficiency Of ten to fifteen
millions. Still. if the revenue were to
come in for the rest Of the fiscal year proper
tionately as it did the first quarter the Treas
ury would have funds enough. The Secretary
does not expect this, and, as we have shown,
makes the estimates very low. What, then, is
to be done? Either the estimated expendi-
lures must be cut down considerably or more
money must be provided. Should the expen-
ditures be kept mp more taxes will have to be
imposed, or additional legal-tender currency
be issued Should more currency be issued,
that would add to the debt, though it would
be no burden to the people, as this debt does
not bear interest. The way to solve
the difficulty is to reduce the
expenditures 1t is not necessary at the pres
ent time to spend s33, 1es, 2s7 on public works,
as the Secretary has estimated. This is about
half as much as the whole government cost
just before the war. Nor do we think
$34, 1881, ,678 is absolutely necessary for our
small military establishment in these times of
peace. No doubt, too, the $11, ,000 900 or
thereabouts for miscellaneous expenses could
be pared down considerably. Then there is
an item under the head of permanent set
down at $16 926, 800. What is that2 1t is not
the sinking fund, for that is separate esti-
mate of $29, 1855 Reduction might safely
be made, undoubtedly, in other estimates not
mentioned. A hundred and ninety millions,
exclusive of interest on the national debt, is
an enormous expenditure for this Republic
II is nearly three times as much as the govern
ment cost before the war. Whatever else may
be said OF Mr.. Richardson, he is certainly IN
economical Secretary Of tho Treasury or On
able 6uaucier.